Most people shouldn’t fear federal “death taxes.” Only those with a fortune of $12.92 million or more (married couples have a federal estate tax threshold of $24.12 million) are subject to federal estate tax, and only a small percentage of Americans have accumulated such wealth (the figures are for 2023).

Additionally, there’s no federal inheritance tax to scare your heirs. (Death taxes are based on the estate’s overall value and paid by the estate, while inheritance taxes are paid by the beneficiary).

But even if your assets are below the threshold, a tax bill could be waiting for you. While some US states have eliminated or reduced their death taxes over the past decade to discourage wealthy seniors from relocating to more tax-friendly jurisdictions, there are 12 states and the District of Columbia that still impose an estate tax.

So, if you don’t know much about death taxes and live in one of the places listed in this article, beware. Read on to find out more!

1. Connecticut

• Estate tax: Yes
• Estate tax rates: 11.6% or 12%
• Estate tax exemption level: $12.92 million

Connecticut’s estate tax threshold is $12.92 million for 2023, which is the same amount as the federal threshold. The tax due is limited to $15 million.

The Constitution State is the only US state that levies a gift tax on assets and other valuables you give away while you’re alive. In other words, if you made taxable gifts, you need to file a Connecticut estate and gift tax return to detail such gifts.

However, the law applies only when the total value of gifts made since 2005 surpasses $12.92 million.

2. District of Columbia

• Estate tax: Yes
• Estate tax rates: 11.2%-16%
• Estate tax exemption level: $4,528,800

Washington, D.C., levies a death tax on the estates of certain people after they have passed away. More specifically, estates worth more than $4,254,800 in 2022 are subject to an estate tax. This threshold is higher than in past years.

The rate of the nation’s capital estate tax ranges from 11.2% to 16% in 2023. Estate planning isn’t easy, and if you’re dealing with the estate of a loved one or planning for your own estate, you may need some help. Consider seeking support from a financial advisor that can help you with your estate planning needs.

3. Hawaii

• Estate tax: Yes
• Estate tax rates: 10%-20%
• Estate tax exemption level: $5.49 million

Hawaii also levies a death tax, which is progressive, with rates ranging from 10% to 20%. The maximum rate is for those estates that are worth more than $10 million. If you live in the Aloha State and leave behind a net worth of $5.49 million or more (for deaths occurring in 2022), your estate may have to pay a death tax.

In fact, this is one of the higher state estate tax thresholds, and it isn’t adjusted annually for inflation. In other words, the tax may seem less frightening for Hawaii residents.

4. Illinois

• Estate tax: Yes
• Estate tax rates: 0.8%-16%
• Estate tax exemption level: $4 million

According to many sources, Illinois turns out to be one of the least tax-friendly states in the US for retirees, so if you live here and you’re in your golden years, chances are the taxes may be a financial burden for you.

So yes, Illinois also has a death tax, which is graduated and goes up to 16%. However, it only applies to estates worth more than $4 million (the threshold must include the adjusted taxable gifts). At least the exemption amount isn’t too frightening. It also isn’t adjusted annually for inflation.

5. Maine

• Estate tax: Yes
• Estate tax rates: 8% – 12%
• Estate tax exemption level: $6.41 million

Maine has one of the less-scary death taxes, as it only applies to estates with a value of $6.41 million or more in 2023. The estate tax threshold is adjusted each year for inflation. Since only a few people have estates that valuable, the Pine Tree State’s tax doesn’t ensnare many estates.

Maine’s death tax rates are reasonable, though, if you compare them with other states’ death tax rates on this list. The highest rate is only 12%, the same as Connecticut’s top rate, making it the lowest top rate in the US.

6. Maryland

• Estate tax: Yes
• Estate tax rate: 0.8%-16%
• Estate tax exemption level: $5 million

The estate exemption for Maryland is $5 million in 2022, plus the predeceased spouse’s unused exclusion amount (if that’s the case). This means that if you pass away and leave behind an estate that’s worth less than $5 million, your estate isn’t subject to the Maryland death tax.

But if your estate is worth $5 million or more, there’s a progressive tax rate (ranging from 0.8% to 16%) that your estate has to pay after you die. While there’s also an inheritance tax in Maryland (with a flat 10% rate), the list of those exempt from paying it includes the decedent’s children, spouse, parents, grandparents, grandchildren, siblings, daughter-in-law, son-in-law, and surviving spouse of a deceased kid. Moreover, property worth less than $1,000 passing to any one heir isn’t subject to the tax.

7. Massachusetts

• Estate tax: Yes
• Estate tax rates: 0.8%-16%
• Estate tax exemption level: $1 million

Many people think they shouldn’t worry about death taxes because the federal tax threshold is too high. Well, this may be right, but not in the Bay State. Unfortunately for middle-class Massachusetts residents, this tax exemption is lower than the federal.

One of only two states with an exemption of $1 million, Massachusetts is less friendly to estates than most other US states. The state has a graduated tax rate ranging between 0.8% and a maximum of 16%.

8. Minnesota

• Estate tax: Yes
• Estate tax rates: 13% – 16%
• Estate tax exemption level: $3 million

The death tax rate in the North Star State ranges from 13% to 16%, and it applies to estates worth more than $3 million. In other words, the state can’t tax any wealth below this threshold. Let’s say John’s total estate is worth $15.1 million. Since the exemption is $3 million, the taxable estate amount is $12.1 million.

One more thing here: Any assets given away within three years of the donor’s death are considered part of the estate.

9. New York

• Estate tax: Yes
• Estate tax rates: 3.06%-16%
• Estate tax exemption level: $6.58 million

For 2023, estates exceeding a threshold of $6.58 are subject to New York’s death tax (the exemption amount is adjusted every year for inflation). Taxable gifts made by the decedent within three years prior to death are also included as part of the estate (this only applies if the decedent was a New York resident). The death tax rate ranges from 3.06% to 16%.

The estate tax in New York is a “cliff tax.” This means that if the estate is worth more than 105% of the current tax exemption, the exemption will no longer be available, and the entire estate will be subject to the state death tax.

10. Vermont

• Estate tax: Yes
• Estate tax rate: 16% (flat rate)
• Estate tax exemption level: $5 million

Vermont is another state that levies a death tax. Unlike the other ones, though, the Green Mountain State’s estate tax is flat. If the value of your estate is more than $5 million, the state taxes the excess at a flat rate of 16%, so no progressive rates or tax brackets are involved.

11. Oregon

• Estate tax: Yes
• Estate tax rates: 10% – 16%
• Estate tax exemption level: $1 million

When it comes to death taxes, Oregon is the scariest place in the US to die. The Beaver State has resisted the trend to increase its estate tax threshold (or even adjust it for inflation).

Only estates valued at $1 million or more are subject to a death tax in Oregon. The relatively high 10% tax rate applies to even the smallest of qualifying estates.

12. Rhode Island

• Estate tax: Yes
• Estate tax rates: 0.8%-16%
• Estate tax exemption level: $1,733,264

Although Rhode Island adjusts its estate tax threshold every year for inflation, it still has a very low exemption. At only $1,733,264 for 2023, the Ocean State’s exemption amount is one of only three in the US, which is less than $2 million.

If an estate is worth more than $1,733,264, a progressive tax rate ranging between 0.8% and 16% will determine how much you owe.

13. Washington

• Estate tax: Yes
• Estate tax rates: 10%-20%
• Estate tax exemption level: $2.193 million

A death tax is imposed by Washington on estates worth $2.193 million or more. The exemption amount is subject to adjustment annually for inflation. The estate tax rates in this state are progressive and range between 10% and 20%. Washington also offers an extra $2.5 million in deductions for family-owned businesses worth less than $6 million.

You may also want to read 8 Tax Season Preparation Steps (2023).