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Explore 2025 state estate tax rates and state inheritance tax rates However, 12 states and washington, d.c., still impose an estate tax, and five states have an inheritance tax Compare estate tax rates by state and inheritance tax rates by state.

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If your clients reside in or own property in one of the 18 states that currently levies an estate or inheritance tax, their assets may face taxation even if they are not subject to federal estate tax. (the lower the exemption, the more likely that an estate will be taxed.) Some states impose an inheritance or estate tax that applies after a death

Here's what you need to know about how these taxes work and who must pay them.

Here we have provided a “cheat sheet” to keep in mind for 2025 federal estate, gift, and gst exemptions, as well as exemptions and inheritance tax consequences in states that impose their own estate, gift, or inheritance tax. Below we’ve listed each state that charges estate taxes and the amount of the state’s exemption to help you determine if your heirs will be facing an estate tax liability in the year 2025. Twelve states and the district of columbia levy their own estate taxes with much lower exemption limits Five states, including kentucky, maryland, nebraska, new jersey, and pennsylvania, collect a true inheritance tax from certain heirs.

Twelve states and the district of columbia have their own estate tax In most cases, their exemption amount is less than the federal exemption