States with Death Taxes (2023)

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Much of the work of financial planning is ultimately tax planning. While we often focus on federal tax planning, sometimes state-specific tax planning is warranted.

One area where states differ is on death taxes. While most states do not have their own estate or inheritance taxes, some states do and often their exemption is lower than the federal one.

Fortunately, in October 2023 the Tax Foundation compiled this information into a handy infographic.

They also listed this information in the following table:

Notes: Exemption amounts are shown for state estate taxes only. Inheritance taxes are levied on the posthumous transfer of assets based on the relationship to the decedent; different rates and exemptions apply depending on the relationship. CT’s exclusion now matches the federal exemption. Iowa is phasing out its inheritance tax, with full repeal scheduled for 2025.

With clients living across the country, it can be important to keep this sort of state specific information in mind.

Photo by Courtney Hedger on Unsplash. Image has been cropped.

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Chief Operating Officer, CFP®, APMA®

Megan Russell has worked with Marotta Wealth Management most of her life. She loves to find ways to make the complexities of financial planning accessible to everyone. She is the author of over 800 financial articles and is known for her expertise on tax planning.