SEO METADATA — EDITOR REFERENCE

Title Tag: States With Estate Tax 2026: All 12 States — Exemptions, Rates & Portability - ProbatePedia

Meta Description: Only 12 states + Washington D.C. still impose a state estate tax in 2026. Exemptions range from $1M (Oregon, Massachusetts) to $9.1M (Maine). Rates go up to 20% (Washington). NO state has portability like the federal system. Here is the complete state-by-state guide.

States With Estate Tax 2026: All 12 States Compared

Last Updated: March 2026 • Federal: PL 119-21 (July 4, 2025) — $15M/person• Cross-State Series — Article 1 of 6 · HIGH VOLUME

| Content2026 ExemptionContentTop RateContentPortability?ContentIndexed?ContentUnique Feature** | | --- | --- | --- | --- | --- | --- | | Connecticut | $15,000,000 (matches federal) | 12% | No | Yes — tracks federal | CT phased up to federal parity; gift tax also applies in CT — ⚠ verify current CT gift tax status | | Hawaii | $5,490,000 (⚠ verify 2026) | 20% | No | ⚠ verify | 20% top rate — tied with WA for highest; ⚠ editor verify current HI exemption and rate table | | Illinois | $4,000,000 | 16% | No | No — flat since 2013 | No TODD for real property; $4M flat exemption; no indexing | | Maine | ~$9,100,000 (⚠ verify 2026) | 12% | No | Yes — indexed | Maine has highest indexed exemption of any estate-tax state except CT; ⚠ verify exact 2026 figure | | Maryland | $5,000,000 | 16% | No | No | Only state with BOTH an estate tax AND an inheritance tax (Class C/D); ⚠ verify current MD rules | | Massachusetts | $2,000,000 | 16% | No | No | Lowest exemption of any state; cliff effect fixed in 2023 reform; no gift tax | | Minnesota | $3,000,000 (⚠ verify) | 16% | No | ⚠ verify | Farm deduction + QSB deduction; no gift tax; dual title system (Torrens) | | New York | ~$7,280,000 (⚠ verify 2026) | 16% | No | Yes — indexed | Notorious cliff effect: estates above 105% of exemption taxed from $0; ⚠ verify 2026 exemption | | Oregon | $1,000,000 | 16% | No | No — flat since 2012 | Lowest exemption in nation (tied with pre-2023 MA); no indexing; affects many OR homeowners | | Rhode Island | ~$1,774,583 (⚠ verify 2026) | 16% | No | Yes — indexed | ⚠ verify exact 2026 RI exemption; RI indexes for inflation | | Vermont | $5,000,000 | 16% | No | ⚠ verify | ⚠ verify current VT exemption and rate | | Washington State | $2,193,000 (⚠ verify 2026) | 20% | No | Yes — inflation indexed | Highest top rate in nation (20%); no gift tax; no TODD for real property; Community Property state | | Washington D.C. | $4,528,800 (⚠ verify 2026) | 16% | No | Yes — indexed | ⚠ verify current DC estate tax exemption |

The No-Portability Problem — Why Credit Shelter Trusts Are Essential in Every Estate-Tax State

Unlike the federal estate tax system — which since 2010 has allowed a surviving spouse to 'port' the deceased spouse's unused federal exemption — not a single state estate tax system has portability. This means every married couple in a state with an estate tax must proactively plan to preserve both spouses' exemptions.

| ContentExemption Per PersonContentCombined Exemption If Both Spouses Use Credit Shelter TrustContentPotential State Estate Tax Wasted Without Planning** | | --- | --- | --- | --- | | Oregon | $1,000,000 | $2,000,000 protected | Up to ~$99,000+ per $1M above exemption — for a $2M estate | | Massachusetts | $2,000,000 | $4,000,000 protected | Up to ~$182,000+ wasted per $2M estate without trust | | Washington State | $2,193,000 | $4,386,000 protected | Up to $219,000–$438,000+ wasted depending on estate size | | Minnesota | $3,000,000 | $6,000,000 protected | Up to $430,000–$480,000+ wasted without AB Trust | | Illinois | $4,000,000 | $8,000,000 protected | Significant — depends on estate size | | New York | ~$7,280,000 | ~$14,560,000 protected | Plus: NY cliff effect means estates 1%–5% above exemption face catastrophic over-taxation |

The Credit Shelter Trust Is Mandatory in Every Estate-Tax State — Not Optional:

Portability at the federal level lulled many couples into believing they do not need a credit shelter trust. At the federal level, portability is available and gives flexibility. At the STATE level, portability does not exist anywhere. A married couple in Massachusetts who uses a simple 'I love you' will — leaving everything to the surviving spouse — permanently loses the first spouse's $2M MA exemption. The same couple in Washington State loses $2.193M. In Minnesota, $3M. In New York, ~$7.28M. The only way to preserve both state exemptions for a married couple is a properly drafted Credit Shelter Trust (also called a Bypass Trust, AB Trust, or Family Trust).

States With the Most Dangerous Estate Tax Features

| ContentState(s)ContentWhy It Matters** | | --- | --- | --- | | Lowest exemption — homeowners at risk | Oregon ($1M), Massachusetts ($2M), Washington ($2.193M) | A single-family home plus retirement savings can push a middle-class retiree over the threshold; estate tax is not just for the wealthy in these states | | Highest top rate | Washington State (20%), Hawaii (20%) | At 20%, WA has the highest marginal estate tax rate in the country; on a $5M taxable estate (over the $2.193M exemption), the WA estate tax could approach $400,000–$550,000 | | Cliff effect | New York | NY estates above 105% of the ~$7.28M exemption are taxed from $0 — meaning a $7.5M NY estate could owe more estate tax than a $7.28M NY estate; worst design of any state estate tax | | No indexing — flat exemption | Oregon ($1M since 2012), Illinois ($4M since 2013) | Flat exemptions that are not indexed for inflation erode in real terms every year; OR's $1M exemption is increasingly capturing moderate estates | | Estate + Inheritance tax | Maryland | Maryland is the only state with both an estate tax AND a Class C/D inheritance tax; double taxation risk — ⚠ verify current MD rules | | No TODD for real property | Washington State, New York, New Jersey, Pennsylvania, Oregon (⚠ verify) | Homeowners in these states cannot avoid probate on real property with a TODD; living trust is the only effective probate-avoidance tool for real estate |

States With No Estate Tax (38 States + All Community Property States Except WA)

| ContentStatesContentPlanning Note** | | --- | --- | --- | | Community property states — no estate tax | Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Wisconsin (opt-in) | Community property states (except WA) have no state estate tax; CA's community property double step-up in basis is a major federal estate planning advantage | | High-population states with no estate tax | Florida, Texas, California (estate tax), Pennsylvania, Ohio, Georgia, Michigan, North Carolina, Virginia | No estate tax — a major factor for high-net-worth individuals considering relocation from NY, MA, WA, or IL | | South / Southeast | Alabama, Arkansas, Florida, Georgia, Kentucky (inheritance only), Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Virginia | No estate tax in any of these states | | Midwest — no estate tax | Iowa (inheritance tax only), Indiana (inheritance tax), Kansas, Michigan, Missouri, Nebraska (inheritance tax), North Dakota, Ohio, South Dakota, Wisconsin | Note: Iowa and Indiana have inheritance taxes; most other Midwest states have no estate tax and no inheritance tax |

Interstate Estate Tax Domicile Planning

The most powerful estate tax planning move available to very high-net-worth individuals in high-estate-tax states is a change of domicile to a no-estate-tax state. A New York resident with a $20M estate pays both federal estate tax and New York estate tax. If they change domicile to Florida before death, the New York estate tax (potentially $1M+) is eliminated.

| ContentFrom State (Estate Tax)ContentTo State (No Estate Tax)ContentApproximate State Estate Tax Saved** | | --- | --- | --- | --- | | Retiree with $10M estate | New York (~$7.28M exemption; 16%) | Florida (no estate tax) | NY estate tax on $2.72M excess ≈ $400,000+ | | Retiree with $5M estate | Massachusetts ($2M exemption; 16%) | Florida (no estate tax) | MA estate tax on $3M excess ≈ $400,000–$480,000 | | Retiree with $5M estate | Washington State ($2.193M; 20%) | Nevada or Texas (no estate tax) | WA estate tax on $2.8M excess ≈ $360,000–$560,000 | | Retiree with $6M estate | Illinois ($4M; 16%) | Tennessee or Florida (no estate tax) | IL estate tax on $2M excess ≈ $200,000–$320,000 | | Retiree with $8M estate | Oregon ($1M; 16%) | Nevada or Wyoming (no estate tax) | OR estate tax on $7M excess ≈ $700,000–$1,100,000 |

Domicile Change Requires More Than Buying a Florida Condo:

Courts — and state revenue departments — scrutinize claimed domicile changes by wealthy individuals from high-tax states like New York, Massachusetts, and California. A successful domicile change requires: (1) Obtaining a Florida (or target state) driver's license and voter registration; (2) Spending more than 183 days per year in the new state; (3) Executing a Declaration of Domicile; (4) Re-registering vehicles; (5) Changing your primary bank to the new state; (6) Updating estate planning documents to reflect new domicile; (7) Reducing ties to the old state (no New York City apartment as a 'primary' residence). NY and CA are particularly aggressive in auditing claimed domicile changes.

✅ Verified Data — March 2026

• 12 states + DC have state estate tax in 2026 — confirmed overall; ⚠ each state's exemption must be verified from current state statutes

• No state has portability between spouses for state estate tax — confirmed

• CT: $15M exemption (federal parity) — ⚠ verify current CT exemption and gift tax status

• WA: 20% top rate (highest in nation, tied with HI) — confirmed

• MA: $2M exemption (since Jan 1, 2023, following reform) — confirmed

• NY cliff effect: estates above 105% of exemption taxed from $0 — confirmed

• IL: $4M flat since 2013; no indexing — confirmed

• MN: $3M (⚠ verify), no portability — confirmed

• OR: $1M flat since 2012; no indexing — confirmed

• MD: only state with both estate tax and inheritance tax — confirmed; ⚠ verify current MD rules

• Federal estate tax: $15,000,000/person (PL 119-21, signed July 4, 2025) — confirmed

Cross-State Comparison Series:

CS-1 → States With Estate Tax 2026: All 12 States Compared

CS-2 → States With Inheritance Tax 2026: All 6 States Compared

CS-3 → Best & Worst States for Estate Planning (Retirement Guide)

CS-4 → States With Transfer on Death Deed (TODD) 2026

CS-5 → How to Avoid Federal & State Estate Tax: Complete Strategy Guide

CS-6 → State Probate Comparison: Costs, Timelines & Thresholds Across 50 States

probatepedia.com · /estate-tax/states-with-estate-tax/ · CS-1 of 6 · v1.0 March 2026