Some states do not follow IRS guidelines for Estates and Trusts.
- Two states, Connecticut and Vermont, have flat estate taxes with a single tax rate.
- Hawaii and Washington have the highest top rates in the nation at 20 percent.
- Eight states and the District of Columbia are next with a top rate of 16 percent.
- All states impose certain exemptions that prevent smaller estates from being subject to these taxes.
- Oregon has the lowest exemption at $1 million, and
- Connecticut has the highest exemption at $12.92 million.
Of the six states with inheritance taxes,
- Kentucky and New Jersey have the highest top rate of 16 percent.
- Iowa is phasing out its inheritance tax, with full repeal scheduled for 2025, with the tax’s top rate at 6 percent in 2023.
- All six states exempt spouses, and some fully or partially exempt immediate relatives.
Other state do vary from the IRS guidelines.
See Estate and Inheritance Taxes by State for additional details.
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