33 States with No Estate Taxes or Inheritance Taxes

@Shutterstock

Estate taxes and inheritance taxes, also known as death taxes, can make a drastic difference for you and your loved ones. If you want to make sure your heirs get the most of your fortune, not Uncle Sam, it pays off to known which states are better for your retirement.

What is an estate tax or inheritance tax?

An estate tax is a financial tax levied on your property (cash, real estate, stock, or other assets) transferred to your heirs or beneficiaries after your death.

An inheritance tax is paid by a person, also known as a beneficiary, who inherits the money or property of a deceased person. In most states, the inheritance tax does not apply to very close relatives.

With a federal estate tax exemption of up to $11.7 million as of 2021($23.4 million for a married couple), it’s important to live in a state where you don’t have to worry about these death taxes. That being said, check out these 33 states with no estate or inheritance tax.

1. Alabama

Overall Rating for Taxes on Retirees: Tax-friendly.

2. Alaska

Overall Rating for Taxes on Retirees: Mixed tax situation.

3. Arizona

Overall Rating for Taxes on Retirees: Most tax-friendly.

4. Arkansas

Overall Rating for Taxes on Retirees: Most tax-friendly.

5. California

Overall Rating for Taxes on Retirees: Tax-friendly.

6. Colorado

Overall Rating for Taxes on Retirees: Most tax-friendly.

7. Delaware

Overall Rating for Taxes on Retirees: Most tax-friendly.

8. Florida

Overall Rating for Taxes on Retirees: Tax-friendly.

9. Georgia

Overall Rating for Taxes on Retirees: Tax-friendly.

10. Idaho

Overall Rating for Taxes on Retirees: Tax-friendly.

11. Indiana

Overall Rating for Taxes on Retirees: Not tax-friendly.

12. Kansas

Overall Rating for Taxes on Retirees: Least tax-friendly.

13. Louisiana

Overall Rating for Taxes on Retirees: Tax-friendly.

14. Michigan

Overall Rating for Taxes on Retirees: Not tax-friendly.

15. Mississippi

Overall Rating for Taxes on Retirees: Tax-friendly.

16. Missouri

Overall Rating for Taxes on Retirees: Mixed tax situation.

17. Montana

Overall Rating for Taxes on Retirees: Tax-friendly.

18. Nevada

Overall Rating for Taxes on Retirees: Most tax-friendly.

19. New Hampshire

Overall Rating for Taxes on Retirees: Not tax-friendly.

20. New Mexico

Overall Rating for Taxes on Retirees: Not tax-friendly.

21. North Carolina

Overall Rating for Taxes on Retirees: Mixed tax situation.

22. North Dakota

Overall Rating for Taxes on Retirees: Mixed tax situation.

23. Ohio

Overall Rating for Taxes on Retirees: Not tax-friendly.

24. Oklahoma

Overall Rating for Taxes on Retirees: Mixed tax situation.

25. South Carolina

Overall Rating for Taxes on Retirees: Most tax-friendly.

26. South Dakota

Overall Rating for Taxes on Retirees: Mixed tax situation.

27. Tennessee

Overall Rating for Taxes on Retirees: Most tax-friendly.

28. Texas

Overall Rating for Taxes on Retirees: Least tax-friendly.

29. Utah

Overall Rating for Taxes on Retirees: Mixed tax situation.

30. Virginia

Overall Rating for Taxes on Retirees: Tax-friendly.

31. West Virginia

Overall Rating for Taxes on Retirees: Mixed tax situation.

32. Wisconsin

Overall Rating for Taxes on Retirees: Least tax-friendly.

33. Wyoming

Overall Rating for Taxes on Retirees: Most tax-friendly.

If your current state is not on the list, you might want to consider relocating to a tax-friendlier location.

 

Leave a Comment

Your email address will not be published.

1 thought on “33 States with No Estate Taxes or Inheritance Taxes”

  1. So what your saying is that my wife wouldn’t need to pay taxes on money I leave her nor would she have to pay property taxes on our home?

Latest

You might also be interested in :