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