No Estate Tax States: The Complete 2026 List

Most Americans will never owe a state estate tax — 38 states and the District of Columbia impose none. But the 12 that do can claim 10% to 20% of an estate's value above their exemption threshold, a bill that catches families off guard when a parent dies owning a home and a retirement account in the wrong state.

Here is every state that charges zero estate tax, every state that does, and the critical difference between estate tax and inheritance tax that trips up executors every year.

States With No Estate Tax (2026)

These 38 states impose no state-level estate tax:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, Wyoming, plus the District of Columbia.

New Hampshire stands out even among tax-friendly states. It charges zero estate tax, zero inheritance tax, zero personal income tax (the Interest and Dividends tax was fully repealed January 1, 2025), and zero sales tax. That four-zero combination makes it one of the most favorable estate planning jurisdictions in the country.

States That Impose an Estate Tax

Twelve states levy their own estate tax with exemption thresholds well below the federal $13.61 million (2024):

Oregon's $1 million threshold is the lowest in the country — a homeowner with a paid-off house and a 401(k) can cross it without realizing.

Estate Tax vs. Inheritance Tax — They Are Not the Same

Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by each beneficiary based on what they receive and their relationship to the deceased.

Six states impose an inheritance tax: Iowa (phasing out by 2025), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state that imposes both an estate tax and an inheritance tax.

In inheritance tax states, close family members (spouses, children) usually pay nothing or a reduced rate. Distant relatives and unrelated beneficiaries face the steepest rates — up to 18% in Nebraska for non-relatives.

Living in a No-Estate-Tax State Does Not Mean Zero Tax Exposure

Even if your state charges nothing, three situations still create tax bills:

Federal estate tax. Estates exceeding the federal exemption ($13.61 million for individuals, $27.22 million for married couples in 2024) owe federal estate tax at rates up to 40%. This applies regardless of which state you live in.

Property in a taxing state. If you own a vacation home in Massachusetts or inherited a rental in Oregon, that property may be subject to the other state's estate tax through ancillary probate — even if your home state charges nothing.

Retirement account income taxes. IRAs and 401(k)s pass outside probate through beneficiary designations, but distributions are taxed as ordinary income by the federal government. States with income tax will tax those distributions too. New Hampshire's zero income tax means IRA distributions to NH beneficiaries face only federal tax.

What to Do If You Live in a No-Estate-Tax State

The absence of state estate tax does not eliminate the need for a plan. Without a will or trust, assets pass through intestacy — a rigid statutory formula that ignores your actual wishes. In New Hampshire, for example, a surviving spouse with children from a prior relationship receives only the first $100,000 plus half the remaining balance under RSA 561.

Three steps that matter regardless of your state's tax stance:

1. Title your assets correctly. Joint tenancy, beneficiary designations on accounts, and transfer-on-death deeds move assets outside probate. New Hampshire adopted TOD deeds in July 2024 under RSA 563-D, but the deed must be recorded within 60 days or it is void.

2. Evaluate trust vs. will. A revocable living trust avoids probate but does not protect against Medicaid estate recovery in states like New Hampshire, where DHHS can recover from trust assets under RSA 167:14-a.

3. Coordinate across state lines. If you own property in multiple states, each state's probate court may need to be involved. A plan that works in your home state may create problems in a state where you hold real estate.

The New Hampshire Estate Planning Kit covers all three — intestacy rules, TOD deed requirements, Medicaid protection strategies, and the 2026 homestead exemption changes — in one step-by-step package.

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