13 US States With the Highest Death Taxes

February 6, 2023 · Taxes

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%.

A clean, modern diagram of Minnesota with labels for state estate tax and taxable estate values. — This detailed infographic outlines Minnesota’s estate tax rates, filing thresholds, and key deductions for taxpayers.

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.