November 20, 2024
State Transfer Taxes
Quick-Take: In Michigan we do not have either a state estate tax or state inheritance tax to plan ‘around.’ However, there are several states that still impose, one or the other tax that should be considered when provide planning guidance. A list of some state transfer taxes follows:
- Connecticut: Estate tax rate of 12%, after an estate tax exemption amount of $13,618,000.
- Illinois: Estate tax rates range from .80% to 16.0%, after an estate tax exemption amount of $4.0 million.
- Iowa: Inheritance tax rates range from 0 to 2% with no exemption amount.
- Kentucky: Inheritance tax rates range from 0 to 16%, after an inheritance tax exemption amount of $1,000.
- Massachusetts: Estate tax rates range from .80% to 16.0%, after an estate tax exemption amount of $2.0 million.
- Minnesota: Estate tax rates range from 13.0% to 16.0%, after an estate tax exemption amount of $3.0 million.
- New Jersey: Inheritance tax rates range from 0 to 16%, after an estate tax exemption amount of $25 million.
- New York: Estate tax rates range from 3.06% to 16%, after an estate tax exemption amount of $6.940 million.
Other states that impose a state estate tax, at varying rates, include Hawaii, Maine, Maryland, Oregon, Rhode Island, Vermont, Washington and the District of Columbia. The states that impose only an inheritance tax are Nebraska and Pennsylvania.