States With Inheritance or Estate Taxes (2024 Guide) – Forbes Advisor – Technologist

There are 12 states that impose an estate tax in 2024, in addition to Washington, D.C. Here are the rules in the states that charge this tax on estates. Remember, this tax is paid by the estate, so the value of the estate is what matters, not the relationship between the estate and heirs.

Connecticut

Resident and nonresident estates are liable for Connecticut estate taxes. This includes estates when the deceased was domiciled in Connecticut and when the deceased owned real or tangible property in Connecticut.

Estate Tax Rates and Thresholds

Estates are taxable in Connecticut only when the taxable estate value is worth more than $13.61 million for 2024. A 12% tax is applied on the excess over the federal basic exclusion amount.

Filing Procedures and Deadlines

When the amount of a taxable estate in Connecticut exceeds $13.61 million for 2024, the state is required to file Form CT‑706/709 with the Department of Revenue Services and to file a copy of this form with the probate court. Forms must be filed no later than six months after the date when the death occurs unless you request an extension.

Hawaii

Hawaii’s estate tax is progressive. Here are the rules for when and how the tax applies to Hawaii estates including those where the deceased lived in or owned property in Hawaii.

Estate Tax Rates and Thresholds

Hawaii’s estate tax is charged only on estates valued at over $5.49 million as of 2024. The tax rates range between 10% and 20% depending on the value of the estate.

Filing Procedures and Deadlines

You must file Form M-6 electronically for deaths that occurred after January 1, 2020 or face a penalty equal to 2% of the tax due. The form must be filed by nine months after the death.

Illinois

Illinois has a progressive estate tax applied when the deceased lived in or owned property in the state.

Estate Tax Rates and Thresholds

The threshold for estate tax in Illinois is $4 million. Tax rates are between 0.8% and 16% depending on the value of the estate.

Filing Procedures and Deadlines

You must file Form 700 in Illinois. The return must be filed within nine months of the date of death. The estate representative must prepare and submit the form along with a Federal Form 706, including all schedules, appraisals, wills, trusts and attachments. If an estate is taxable in Illinois but not on the federal level, which has a higher exemption amount, you can present the required information in an alternative form.

Maine

Maine’s estate tax is progressive and applies when the deceased lived in or owned property in Maine.

Estate Tax Rates and Thresholds

Maine estates valued at more than $6.8 million are taxable. The tax rate ranges between 8% and 12% depending on the value of the estate.

You must file Maine’s Estate Tax Return, which is Form 706, if one of the following is true:

• A federal estate tax return is required.
• The decedent lived in Maine or was a nonresident who owned property in Maine.
• The federal gross estate is worth more than $5.7 million.

Filing Procedures and Deadlines

Estate tax forms and payments can be filed through the Maine Tax Portal (MTP) at revenue.maine.gov. The forms must be filed within 9 months of the date of death, although you are eligible for an automatic extension equal to the longer of any federal extension or six months.

Maryland

Maryland is the only state that has an estate tax and an inheritance tax. Here are the rules for the estate tax.

Estate Tax Rates and Thresholds

Maryland estate taxes apply to estates valued at more than $5 million. The tax rate is between 0.8% and 16% depending on the value of the estate.

Filing Procedures and Deadlines

You must complete Form MET 1, Maryland’s estate tax form. The form must be filed within nine months of the time of death. You must include Maryland Schedule A if applicable, Maryland Schedule B if applicable, Maryland Schedule C if applicable, and Maryland Schedule D if applicable. You must also complete a federal estate tax return, Form 706.

Massachusetts

Like most states, Massachusetts has a progressive estate tax that applies when the deceased is domiciled in the state or owns property there.

Estate Tax Rates and Thresholds

The estate tax rate for Massachusetts ranges between 0.8% and 16%, and estate tax is imposed once the value of an estate hits $2 million.

Filing Procedures and Deadlines

Estate tax returns found in Form M-706 must be filed nine months after the date of the death. They must be filed by a personal representative of the estate or by anyone who is in actual possession of the property of the decedent. Forms can be filed online through MassTaxConnect.

Minnesota

Minnesota has a progressive estate tax system, and taxes can apply when the deceased lived or owned property in the state.

Estate Tax Rates and Thresholds

In Minnesota, estates are taxed only once they exceed $3 million. The tax rate ranges from 13% to 16% depending on the value of the estate.

Filing Procedures and Deadlines

Form M706, Estate Tax Return is the form you must file for Minnesota estate tax. The form is due nine months after the deceased person passed away, although an automatic six-month extension applies for filing (but not for paying taxes due).

New York

New York applies estate tax on a sliding scale to property the decedent owned in the state.

Estate Tax Rates and Thresholds

In New York, estates become taxable once their value exceeds $6.94 million as of 2024. The estate tax rate is between 3.06% and 16% with larger estates paying a higher marginal rate. If the entire estate is valued at 5% more than the excluded amount, then the entire estate is subject to the estate tax.

Filing Procedures and Deadlines

The New York State Estate Tax Return, Form ET-706, must be filed within nine months of the date of the death unless an extension is granted providing you with more time to take care of the paperwork. The tax still must be paid on time even with an extension.

Oregon

Oregon has a progressive estate tax applicable when the deceased owned property in or lived within the state.

Estate Tax Rates and Thresholds

Oregon’s estate tax is applied to estates valued at $1 million or more. The tax rate ranges from 10% to 16% with larger marginal tax rates applying to larger estates.

Filing Procedures and Deadlines

Form OR-706 Instructions, Oregon Estate Transfer Tax, must be filed within 12 months of the death occurring. You must pay the tax and file the forms on time or request an extension to file and have it approved.

Rhode Island

Estate tax is applied on a graduated scale in Rhode Island.

Estate Tax Rates and Thresholds

As of 2024, estates in Rhode Island become taxable only if they exceed $1,774,583. Tax rates vary, with marginal rates going from 0.8% up to 16% for larger estates.

Filing Procedures and Deadlines

Form RI-706 is used to file your estate tax return in Rhode Island. The executor, administrator or personal representative must submit the form by nine months after the date of death. While you can get a six-month extension for filing the form, taxes are still due on time and interest begins accruing after the nine-month deadline.

Vermont

Unlike many states with a progressive estate tax, Vermont has a flat tax that applies to taxable estates, including estates owned by a deceased person who lived in or owned property in Vermont.

Estate Tax Rates and Thresholds

Vermont exempts estates below $5 million from estate tax. For those estates that are subject to tax, a flat tax of 16% applies.

Filing Procedures and Deadlines

Form EST-191, Estate Tax Return Resident and Nonresident must be filed within nine months of the death of the decedent, although you can file a six-month extension. The extension will not extend the deadline to pay the taxes, however.

Washington, D.C.

Washington, D.C. has a progressive estate tax, and both those who lived in D.C. and those who owned property there could find their estate subject to this tax if it’s large enough.

Estate Tax Rates and Thresholds

As of 2024, Washington, D.C.’s estate tax applies only to estates worth more than $4,715,600. When estate tax applies, the rates range from 11.2% to 16%.

Filing Procedures and Deadlines

You must file Form D-76, which you can submit via MyTax.DC.gov. The form is due within 10 months of the death, although it is possible to get a six-month extension for filing (but not paying the taxes due).

Washington

Washington’s estate tax applies when the deceased owned property or lived in the state. The tax is progressive, so rates go up as the value of the estate increases.

Inheritance Tax Rates and Thresholds

Estate taxes with marginal rates between 10% and 20% apply to estates valued at $2,193,000 and up as of 2024.

Filing Procedures and Deadlines

You’ll need to file a Washington State Estate and Transfer Tax Return within nine months of the date of the death. You can get a six-month extension for filing, but you will still need to pay on time to avoid penalties.