What states have inheritance tax on property? This is a question that often arises when individuals are considering estate planning or relocating to a new state. Inheritance tax is a levy imposed on the estate of a deceased person, which includes property and other assets. While not all states in the United States impose inheritance tax, some do, and understanding which states are affected can be crucial for estate planning purposes.
The states that currently have inheritance tax on property are:
1. Iowa: Iowa levies an inheritance tax on the estates of individuals who die on or after January 1, 2016. The tax rate varies depending on the relationship between the deceased and the heir.
2. Kentucky: Kentucky has an inheritance tax on the estates of individuals who die on or after January 1, 2018. The tax is calculated based on the value of the estate and the relationship between the deceased and the heir.
3. Maryland: Maryland has an inheritance tax on the estates of individuals who die on or after January 1, 2017. The tax rate is progressive, with different rates depending on the relationship between the deceased and the heir.
4. Nebraska: Nebraska has an inheritance tax on the estates of individuals who die on or after January 1, 1993. The tax rate varies based on the relationship between the deceased and the heir.
5. New Jersey: New Jersey has an inheritance tax on the estates of individuals who die on or after January 1, 2005. The tax rate varies depending on the relationship between the deceased and the heir.
6. North Carolina: North Carolina has an inheritance tax on the estates of individuals who die on or after January 1, 2009. The tax rate is progressive, with different rates depending on the relationship between the deceased and the heir.
7. Oklahoma: Oklahoma has an inheritance tax on the estates of individuals who die on or after January 1, 2001. The tax rate varies based on the relationship between the deceased and the heir.
8. Pennsylvania: Pennsylvania has an inheritance tax on the estates of individuals who die on or after January 1, 1993. The tax rate is progressive, with different rates depending on the relationship between the deceased and the heir.
9. South Carolina: South Carolina has an inheritance tax on the estates of individuals who die on or after January 1, 2006. The tax rate varies depending on the relationship between the deceased and the heir.
10. Tennessee: Tennessee has an inheritance tax on the estates of individuals who die on or after January 1, 2016. The tax rate is progressive, with different rates depending on the relationship between the deceased and the heir.
Understanding the inheritance tax laws in these states is essential for estate planning, as it can significantly impact the distribution of assets to heirs. It is advisable to consult with a tax professional or an estate planning attorney to ensure that your estate plan is in compliance with the laws of the state in which you reside or have property.
