What States Have Inheritance Tax in 2025?
Inheritance tax, also known as estate tax, is a significant concern for many individuals and families in the United States. This tax is imposed on the transfer of property or assets from a deceased person to their heirs. As of 2025, several states have implemented inheritance tax, while others have chosen not to impose this levy. Understanding which states have inheritance tax can help individuals plan their estate and minimize potential tax liabilities.
States with Inheritance Tax in 2025
As of 2025, the following states have inheritance tax in place:
1. Connecticut: Connecticut levies an inheritance tax on estates valued over $2 million. The tax rate ranges from 7.2% to 12%, depending on the relationship between the heir and the deceased.
2. Delaware: Delaware imposes an inheritance tax on estates valued over $5.4 million. The tax rate varies from 0.2% to 12%, depending on the heir’s relationship to the deceased.
3. Illinois: Illinois has an inheritance tax on estates valued over $4 million. The tax rate ranges from 0.2% to 16%, with lower rates for certain heirs, such as spouses and children.
4. Maryland: Maryland has an inheritance tax on estates valued over $1 million. The tax rate ranges from 0% to 16%, with lower rates for certain heirs, including spouses, children, and grandchildren.
5. Massachusetts: Massachusetts levies an inheritance tax on estates valued over $1 million. The tax rate ranges from 0.8% to 16%, with lower rates for certain heirs, such as spouses and children.
6. New Jersey: New Jersey has an inheritance tax on estates valued over $675,000. The tax rate varies from 0.2% to 16%, with lower rates for certain heirs, including spouses, children, and grandchildren.
7. New York: New York has an inheritance tax on estates valued over $5.25 million. The tax rate ranges from 0.2% to 16%, with lower rates for certain heirs, such as spouses and children.
8. Rhode Island: Rhode Island has an inheritance tax on estates valued over $1.5 million. The tax rate ranges from 0.75% to 12%, with lower rates for certain heirs, including spouses, children, and grandchildren.
9. Tennessee: Tennessee has an inheritance tax on estates valued over $5.49 million. The tax rate ranges from 0.9% to 16%, with lower rates for certain heirs, such as spouses and children.
10. Texas: Texas has an inheritance tax on estates valued over $5.49 million. The tax rate ranges from 0.9% to 16%, with lower rates for certain heirs, such as spouses and children.
Planning Your Estate
If you reside in one of these states or have significant assets in these states, it is crucial to plan your estate carefully to minimize potential inheritance tax liabilities. Consulting with an estate planning attorney can help you navigate the complexities of inheritance tax and ensure that your assets are distributed according to your wishes while minimizing tax obligations.
By understanding which states have inheritance tax in 2025, you can make informed decisions about your estate planning and take appropriate steps to protect your assets for future generations.
