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Are there state inheritance or estate taxes?

Please see specific state for details and/or differences.

ALABAMA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. Ala. Code Sec. 40-15-2. In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

ALASKA
Only for estates required to file federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 43.31.011). In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state. In the case where the decedent also owes death taxes to other states, a credit against the Alaska tax based on a proportional formula is computed.

ARIZONA
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 42-1521) In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state. If the decedent also paid death taxes to any other state, these state taxes may be a credit against the amount owed to Arizona. There is a computation based upon a ratio using the value of property taxed in other states. (42-1521)

ARKANSAS
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return and, therefore, it does not create an additional tax. (Section 26-59-106) In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state of Arkansas. If the decedent also owes death taxes to another state, the Arkansas tax is the proportionate share of the credit that the Arkansas property bears to the entire estate. If the other state has a reciprocal agreement with Arkansas that provides that it will not tax property of Arkansas residence, then the entire credit is payable to Arkansas.

CALIFORNIA
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return and, therefore, does not create an additional tax. (Section 13302) In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state.

COLORADO
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 39-23.5-101) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If the decedent also owes death taxes to other states, these taxes reduce the amount of tax owed to Colorado. There is a proportional formula that computes the exact amount by which the Colorado taxes are reduced. (Section 39-23.5-103)

CONNECTICUT
Connecticut imposes a succession and transfer tax on all real estate located in the state, all tangible personal property located in the state and all intangible personal property owned by a resident. (Section 12-340) Life insurance proceeds are not considered taxable if paid to a named beneficiary. However, if the proceeds end up in the estate, then it is subject to tax. (Section 12-342, 346) The tax is computed based on the relationship the beneficiary bears to the decedent. Any part of the net taxable estate passing to the surviving spouse will not be taxed. Children, grandchildren, parents and grandparents each receive a $50,000 exemption. After the exemption, there is a graduating percentage scale that varies depending on the relationship of the beneficiary to the decedent. (Section 12-340 et eq)

Connecticut also imposes an estate not created additional tax. (Section 12-391) In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state.

DELAWARE
Delaware imposes an inheritance tax computed on the value of all real estate and tangible personal property located within the state, plus intangible personal property, for residents. (Section 30-1301) The tax is also imposed on nonresidents to the extent they have real estate and tangible personal property located in the state. The tax is computed based on the relationship of the beneficiary to the decedent, and each class carries a different exemption amount. (Section 30-1322) There is then a sliding tax rate scale up to $200,000, at which point the maximum rate applies on any value over $200,000. For example, a spouse is allowed a $75,000 exemption. However, Delaware also recognizes an unlimited marital deduction in the same manner as the Federal government. (Section 30-1323 Subsection b.) Children, grandchildren and parents each receive a $25,000 exemption, with a sliding tax rate structure to a maximum tax of 6%. Gifts to qualified charitable organizations are exempt.

In addition to the inheritance tax, there may also be an estate tax, but only for those estates required to file a Federal estate tax return. The maximum credit for state taxes is computed on the Federal return and, from this number, is subtracted the total of Delaware inheritance tax paid as well as any death taxes paid to any other states. After subtracting these taxes, any amount remaining constitutes the Delaware estate tax. This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the Federal government is payable to the state. (Section 30-c.15)

FLORIDA
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return and, therefore, does not create an additional tax. (Section 198.02) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If inheritance or estate taxes are also owed to other states, then there is a formula computation which allocates this tax partially to Florida and partially to the other states where tax is owed.

GEORGIA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 48-12-2) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If death taxes were also paid to another state, Georgia law allows a credit against the Georgia estate tax based on a proportional formula.

HAWAII
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create any additional tax. (Section 236D) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If death taxes are also payable to another state, Hawaii grants a credit against the Hawaii tax based on a proportional formula based on the value of the Hawaii estate to the total estate.

IDAHO
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does not create an additional tax. In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If the estate was also subject to death taxes in another state, then a credit is made to the amount of tax owed to Idaho. (Section 14-403).

ILLINOIS
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return and, therefore, does not create an additional tax. (Section 120-405.1) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If the decedent also owes death taxes to other states, the tax owed to Illinois will be reduced according to a proportionate formula.

INDIANA
Indiana imposes an inheritance tax on the fair market value of property, less specific exemptions and deductions. (Section 6-4.1-5-1) Transfers to the surviving spouse are generally exempt, as are proceeds from life insurance which are not payable to the estate. The tax rates and exemption amounts vary based on the relationship of the beneficiary to the decedent. For example, a transfer to a child who is under 21 years of age is entitled to a $10,000 exemption, and then the tax rates vary from 1% to the highest rate of 10% for transfers over $1,500,000. A child who is 21 years or older has a $5,000 exemption with the same tax rate schedule. A brother or sister, widowed daughter or sons-in-law, or niece or nephew, has an exemption of $500. The tax rate structure begins at 7% and tops out at 15% on transfers of over $1,000,000. Other beneficiaries are allowed a $100 exemption. Tax rates range from 10% to a high rate of 20% on transfers over $1,000,000.

Indiana may also impose an estate tax which is only computed on those estates required to file a federal estate tax return. The state tax equals the state death tax credit allowed on the federal return, less amounts paid for Indiana inheritance taxes. (Section 6-4.1-4-8) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state and does not create an additional tax.

IOWA
The state of Iowa imposes an inheritance tax based on the relationship of the beneficiary to the decedent. Bequests to a surviving spouse are exempt. Each child has a $50,000 exemption, parents have a $15,000 exemption and other lineal descendants have a $15,000 exemption. The tax rates for these classes begin at 1% and reach at 8% on transfers over $150,000 per beneficiary. Brothers, sisters, sons and daughters in law and stepchildren have no exemption and the tax rates begin at 5% and reach at 10% on transfers over $150,000 per beneficiary. There are no exemptions for bequests to other persons and the rates begin at 10% and cap at 15% on transfers over $100,000 per beneficiary. (Section 450.9,450.10)

Iowa also imposes an estate tax for those estates required to file a federal estate tax return. The estate tax equals the state death tax credit allowed on the federal return, less amounts paid for Iowa inheritance tax and death taxes paid to any other states. (Section 451) The estate tax does not create an additional tax, rather a portion of the tax that would otherwise be paid to the federal government is payable to the state.

KANSAS
Kansas imposes an inheritance tax as a tax on the privilege to inherit property within the state. The tax rates vary based on the relationship of the beneficiary to the decedent. For example, transfers to the spouse are entirely exempt. Children, stepchildren, step-parents, sons/daughters-in-laws, and all other descendants or ancestors have a $30,000 exemption per beneficiary. Tax rates then range from a low of 1% to a high of 5% on transfers over $500,000. Brothers and sisters receive an exemption of $5,000 each. The tax rates then begin at 3% and reach out at a high of 12.5% on transfers over $500,000. There is no exemption for other beneficiaries and the tax rates begin at 10% and reach 15% on transfers over $200,000. The tax does not apply to life insurance proceeds paid to a named beneficiary or to exempt property. Transfers to charitable organizations are also exempt. (Section 79-1537 et seq.).

In addition to imposing an inheritance tax, Kansas also imposes an estate tax for estates required to file a federal estate tax return. The state tax equals the state death tax credit allowed on the federal return, reduced by the amount paid in inheritance tax. (Section 79-1539). This does not create an additional tax, rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

KENTUCKY
Kentucky imposes an inheritance tax based on the relationship of the beneficiary to the decedent. (Section 140.070, 140.080). A surviving spouse may inherit any amount without inheritance tax. A minor child receives a $20,000 exemption and an adult child or step-child receives a $5,000 exemption. The graduated rate structure then begins at 2% and reaches 10% on bequests over $5,000. For brothers, sisters, nieces, nephews, sons/daughter-in-laws, aunts, uncles and great-grandchildren the exemption is $1,000 and the tax rates range from 4% to a high of 16% on bequests over $200,000. All other persons receive a $500 exemption and the tax rates range from 6% to a top rate of 16% on transfers over $60,000. Transfers to educational, charitable and public institutions are exempt.

Kentucky also imposes an estate tax for those estates required to file a federal estate tax return. The states tax equals the state death tax credit on the federal return, less amounts paid in inheritance tax. (Section 140.130). This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

LOUISIANA
Louisiana imposes an inheritance tax based on the relationship of the beneficiary to the decedent. Inheritances by the surviving spouse are exempt from tax. Descendants or ascendants each have a $25,000 exemption, then a tax of 2% applies to the first $20,000 and 3% tax applies to all amounts over $20,000. Next of kin each receives a $1,000 exemption, then a 5% tax is applied to the first $20,000 and 7% tax on amounts over $20,000. For all other beneficiaries, the first $500 is exempted, then a 5% tax applies on the first $5,000 and 10% tax on amounts over $5,000. Donations to public, charitable, religious or educational purposes are exempt. (Section T.47, Section 2401).

Louisiana also applies an estate tax for those estates required to file a federal estate tax return. The estate tax equals the state death tax credit allowed on the federal return, less the amount of state inheritance tax that is paid. (Title 47, Section 2431). This does not create an additional tax, rather it pays tax that would otherwise be payable to the federal government and allocates it to the state.

MAINE
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does not create an additional tax. (Title 36, Section 4063-4064). In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

MARYLAND
Maryland imposes an inheritance tax based on the relationship of the beneficiary to the decedent. The primary exemptions are bequests of $150 or less, all real estate passing to the surviving spouse or the first $100,000 of personal property passing to the surviving spouse, any property that passes by right of survivorship, and insurance proceeds paid to a named beneficiary.

The tax rates are 1% of the value of property inherited by a grandparent, parent, spouse, child or other lineal descendants, step-child or step-parent. The same rate applies if the property passes to a corporation where all of the stockholders consist of specified relatives. If a joint savings account passes, by right of survivorship, to a spouse of a descendent, up to $2,000 is taxed at 1% and the excess is taxed at 10%. The tax rate for property passing to all other persons is 10%. (Section 7-204).

In addition to an inheritance tax, Maryland also imposes an estate tax which applies to estates required to file a federal estate tax return. The tax is equal to the state death tax credit allowed on the federal return less amounts paid to Maryland in inheritance tax. (Section 7-304). This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

MASSACHUSETTS
In the case of a death prior to December 31, 1996, Massachusetts applies an estate tax. There is an exemption of $500,000 for decedents dying during 1995 and an exemption of $600,000 for decedents dying during 1996. The same deductions are allowable as those used in computing federal estate tax. The tax rates on the taxable estate range from 5% on the first $50,000 with a graduated scale, to 16% on taxable estates over $4,000,000. Beginning in 1997, the computation of the estate tax will change and will be based on the state death tax credit allowed on the federal estate tax return. (Chapter 65C, Section 2)

MICHIGAN
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 205.232). In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If the decedent also owed death taxes to other states, a credit is given against the Michigan tax.

MINNESOTA
Only for states required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create additional tax. (Section 291.03) In other words, a portion of the tax that would otherwise be payable to the Federal Government is payable to the state. If the resident decedent also owes death taxes to other states, the Minnesota tax is reduced by amounts paid to other states.

MISSISSIPPI
Mississippi imposes an estate tax on the transfer of the value of every net estate. The tax rates are graduated and begin at 1% for transfers up to $60,000 and reaches 16% for transfers over $10,000,000.

In the case where a federal estate tax return is filed, an additional amount may be due to Mississippi. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 27-9-1) In other words, a portion of the tax that would otherwise be payable to the federal government is allocated to the state.

MISSOURI
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Chapter 145) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

MONTANA
Montana imposes an inheritance tax based on the relationship of the beneficiary to the decedent. All property of a resident decedent is taxable, including a share of joint property and insurance proceeds in excess of $50,000. There is an exemption for all property passing to the surviving spouse or to a lineal descendant or to a step-child, if the step-child relationship began before the child's 18th birthday. For lineal ancestors there is a $7,000 exemption each and then the tax begins at 2% and reaches a top rate of 8% on transfers over $100,000 per beneficiary. Brothers sisters and their descendants and daughters and sons-in-laws each receive a $1,000 exemption, then the tax rates begin at 4% and reach 16%. Aunts, uncles and their children receive no exemption and the tax rates for these individuals begin at 6% and reach 24%. Finally, all other bequests are taxable at a low rate of 8% to a high rate of 32%. (Section 72-16-321,322) An exemption is also allowed for charitable bequests.

In addition to the inheritance tax, Montana imposes estate tax on estates required to file a federal estate tax return. The state tax equals the state death tax credit allowed on the federal return less amounts paid in Montana inheritance tax. (Section 72-16-901-912) This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NEBRASKA
Nebraska imposes an inheritance tax on all property of a decedent, including life insurance payable to the estate and the decedent's share of joint property. All transfers to the surviving spouse are exempt, as are bequests to charitable organizations or government municipalities. The rate of tax is determined by the relationship of the beneficiary to the decedent. Transfers to parents, grandparents, children, and brothers and sisters each receive a $10,000 exemption. A tax of 1% applies on the excess. Transfers to aunts, uncles, nieces, nephews or their lineal descendants, each receive a $2,000 exemption with a tax of 6% on transfers of $2,000 to $60,000 and a tax of 9% on transfers over $60,000. All other transfers receive an exemption of $500 with a graduated tax schedule of 6% as the lowest rate to a top rate of 18% on transfers of over $50,000. (Section 77-2000 et seq)

In addition to the inheritance tax, Nebraska also applies an estate tax for estates required to file a federal estate tax return. The state tax equals the state death tax credit on the federal return, less amounts paid in state inheritance tax. (Section 77-2101, 2102) This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NEVADA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 375A.100) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NEW HAMPSHIRE
New Hampshire imposes a inheritance tax based on a flat tax rate of 18% on all real estate or personal property belonging to persons domiciled in the state. Tax also applies to real estate, located within the state, belonging to a nonresident. (Chapter 86, Section 6) There are exemptions for property passing to the surviving spouse or to the decedent's descendants, ascendants and spouses of descendants and ascendants, as well as step-children. There are also exemptions for bequests to charitable organizations or municipalities. (Chapter 86, Section 6)

New Hampshire also imposes an estate tax on estates required to file a federal estate tax return. The state tax equals the state death tax credit allowed on the federal return, less any amounts paid in state inheritance taxes to any state. (Chapter 87, Section 1) This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NEW JERSEY
New Jersey imposes an inheritance tax with the rates based on the relationship of the beneficiary to the decedent. There is a full exemption for transfers to a surviving spouse, parents, grandparents, child, step-child or issue of any child. Bequests to brothers or sisters or sons- or daughters-in-law are exempt up to $25,000, then rates begin at 11% on the first $1,100,000 and top out at a high rate of 16% on transfers of over $1,700,000. All other bequests are taxed with a $500 exemption at a tax rate beginning at 15% on the first $700,000 and 16% on values over $700,000. There are also exemptions for bequests to charitable organizations and for life insurance payable to someone other than the estate. (Title 54 Chapter 33-37)

New Jersey also imposes an estate tax for those estates required to file a federal estate tax return. The estate tax equals the state death tax credit allowed on the federal return, reduced by the amount of inheritance or estate taxes paid to any state. (Title 54 Chapter 38) This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NEW MEXICO
Only for estates required to file federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return and therefore does not create an additional tax. (Section 7-7-3) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. If the decedent is also required to pay death taxes to another state, a credit against the New Mexico tax is allowed based on a proportional formula.

NEW YORK
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The tax rates range from a low of 2% on amounts up to $50,000 to a top rate of 21% on amounts over $10,100,000. The same deductions allowable for federal estate tax are allowable in computing in the New York estate tax. Since the federal estate tax allows a credit for state death taxes, this generally will not result in an additional tax. (NY TL Section 952) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

NORTH CAROLINA
North Carolina imposes an inheritance tax based on the relationship of the beneficiary to the decedent. Certain transfers are exempt, such as property passing to the surviving spouse, transfers to charitable organizations or those for public purposes. There is a credit for Class A beneficiaries in the amount of $26,150. Class A beneficiaries include descendants, ancestors, and stepchildren. The tax rates for Class A beneficiaries begin at 1% and reach 12% on transfers over $3,000,000. Class B beneficiaries receive no credit and include brothers or sisters and their descendants and aunts and uncles. The tax rates on Class B beneficiaries begin at 4% and increase to a top rate of 16% on transfers over $3,000,000. Class C beneficiaries include any other beneficiaries. These beneficiaries receive no credits and are taxed at rates beginning at 8% and increasing to 17% on transfers of over $2,500,000. (Section 105-2)

There may also be an estate tax for those estates required to file a federal estate tax return, based on the state death tax credit. This does not create an additional tax, but rather a portion of the tax that would otherwise be payable to the federal government is payable to the state. (Section 105-8)

NORTH DAKOTA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 57-37.1-04) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. For those estates that owe tax to more than one state, a credit against the North Dakota tax is given for all or a portion of tax paid to another state, based on a proportional formula.

OHIO
Ohio imposes an estate tax after allowing deductions similar to those allowed for federal estate tax. There is an unlimited deduction for transfers to the surviving spouse. The tax rate then begins at 2% of the taxable estate on the first $40,000 and follows a graduated scale to a top rate of 7% on a taxable estate of over $500,000. A $500 credit against the tax is allowed. (Section 5731.02) For those estates required to file a federal estate tax return, an additional estate tax may be imposed based on the amount of state death tax credit allowed on the federal return. If the amount paid through the Ohio estate tax, plus any taxes paid to any other states, does not equal the state death tax credit, an additional tax will be owed based on the difference. (Section 5731.18) This does not create an additional tax, rather a portion of the tax that would be otherwise payable to the federal government is payable to the state.

OKLAHOMA
Oklahoma imposes an estate tax with a rate structure, based on the relationship of the beneficiary with the decedent. There is an unlimited marital deduction, so that any transfers to the surviving spouse are exempt from tax. Transfers to parents, children, step-children, or any lineal descendants are eligible for a $175,000 exemption. The rates to this class of individuals then begins at 1/2% on the first $10,000 and follows a graduated scale up to a maximum rate of 10% on transfers of over $10,000,000. Transfers to all others begin with a tax rate of 1% on the first $10,000 with a top rate of 15% of transfers over $1,000,000. (Section 68-801 et seq.)

OREGON
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 118.100) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

PENNSYLVANIA
Pennsylvania imposes an inheritance tax on estates after certain deductions are allowed. There are exemptions for transfers to charitable organizations, life insurance proceeds, and property owned by husband and wife in joint tenancy with right of survivorship, among others. There is also an exemption for the total amount transferred to the surviving spouse if the value of the estate does not exceed $200,000 and the average income of the couple for three years prior to death did not exceed $40,000. The rate of tax for property passing to a child, lineal descendent, parent, grandparent or spouse is 6% of the value of the property after deductions. Property passing to all other beneficiaries are taxed at a rate of 15%. (Section 72-9101 et seq.)

For those estates required to file a federal estate tax return, there may be an additional tax. If the amount of the state death tax credit allowed on the federal return exceeds the amount paid in inheritance tax, the difference will be an estate tax imposed by Pennsylvania. (Section 72-9117, 9145) This does not create an additional tax, rather a portion of the tax that would otherwise be payable to the federal government is payable to the state.

RHODE ISLAND
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 44-22-1) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

SOUTH CAROLINA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 12-16-510) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. In the case where the decedent also owes taxes to another state, a credit against the South Carolina tax is given based on a formula which prorates the tax among the different states. (Section 12-16-510 B)

SOUTH DAKOTA
South Dakota imposes an inheritance tax based on the relationship of the beneficiary to the decedent. There is a full exemption for transfers to the surviving spouse. The tax rate is a graduated scale starting with a primary rate on the first $15,000 and a tiered structure to transfers of over $100,000 per beneficiary. There is an exemption of $30,000 for each transfer to each child or lineal descendent. Transfers to ancestors receive a $3,000 exemption. Transfers to brothers, sisters, nieces, nephews and sons- and daughters-in-law, receive a $500 exemption. Aunts, uncles and cousins receive a $200 exemption and all other transfers receive a $100 exemption. The tax rates vary based on the relationship of the beneficiary to the decedent.

In addition to the inheritance tax, for those estates required to file a federal estate tax return there may also be imposed an additional estate tax. The state tax equals the state death tax credit allowed on the federal return, reduced by amounts paid in inheritance tax. This does not create an additional tax, rather a portion of the tax that would otherwise be payable to the federal government is payable to the state. (Section 10-40-2 et seq.)

TENNESSEE
Tennessee imposes an inheritance tax on the taxable estate of the decedent. There is a shared exemption of $600,000 among all the beneficiaries. The graduated tax rate structure then begins at 5.5% and reaches a rate of 9.5%. There is a complete exemption for any amounts passing to the surviving spouse. (Section 67-8-314, 315, 316)

There may also be an additional estate tax, but only for those estates required to file a federal estate tax return. The additional estate tax equals the state death tax credit allowed on the federal return, less any amounts paid in inheritance tax. (Section 67-8-201) This does not create an additional tax. Rather, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

TEXAS
Only for estates required to file a federal estate tax return does there apply any type of state death tax. State tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Tax Code Section 211.051) In other words, the portion of the tax that would otherwise be payable to the federal government is payable to the state. If the decedent is also required to pay death taxes to another state, a credit is allowed against the Texas tax, based either on the amount of out-of-state tax paid, or based on a fractional formula.

UTAH
Only for estates required to file a federal estate tax return does there apply any type of state death tax. State tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 59-11-101 et seq.) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. In the case where the decedent also owes death taxes to another state, the amount of tax owed to Utah is reduced by the lesser of the amounts paid to other states, or an amount calculated according to a proportional formula of the value of the estate located outside the state. (Section 59-11-103)

VERMONT
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 32-7401 et seq.) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

VIRGINIA
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore does not create an additional tax. (Section 58.1-902) In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state. In the case where the decedent also owes death taxes to another state, credit is given against the Virginia tax for the lesser of the actual amount paid to the other state, or an amount computed by a formula based on the proportional value of the estate located in other states.

WASHINGTON
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does create an additional tax. (Section 83.100.030). In other words, a portion of the tax that would otherwise be payable for the federal government is payable to the state. In the case where the decedent also owes death taxes to other states, a credit is allowed against the Washington tax, based on the lesser of the amount of tax paid to the other state, or an amount computed using a proportional formula based on the value of the out-of-state estate.

WEST VIRGINIA
Only for estates required to file a federal estate tax return does there apply any state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does not create an additional tax. (Ch. 11, Art. 11, Section 2, 3). In other words, a portion of the tax would otherwise be payable to the federal government is payable to the state. In the case where the decedent also owes death taxes to other states, a credit is given against the West Virginia tax, based on a proportional formula board on the value of the out-of-state estate. (Ch. 11, Art. 11, Section 4-6).

WISCONSIN
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does not create an additional tax. (Chapter 72). In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

WYOMING
Only for estates required to file a federal estate tax return does there apply any type of state death tax. The state tax equals the state death tax credit allowed on the federal return, and therefore it does not create an additional tax. (Section 39-6-810-813). In other words, a portion of the tax that would otherwise be payable to the federal government is payable to the state.

This is not a substitute for legal advice. An attorney must be consulted.