Estate taxes, sometimes known as “death taxes”, are done both by the federal government as well as a small number of states. Estate taxes will become implemented when a person’s estate has exceeded a certain amount at their death. The federal estate tax rate is set to be at $11,700,000 for 2021.
Currently, Oregon and Massachusetts have the smallest estate amount needed to receive an estate tax. Rhode Island comes as a close second, while Washington state is third. For tax rates, Washington state has the highest rate for the smallest estate amount. Both Washington and Hawaii have the highest estate tax rate of 20%, but Hawaii’s highest rate starts at over 10 million, while Washington’s start at 9 million.
If you live in one of the states below, contact an attorney to learn how to minimize your estate.
Connecticut
Hawaii
Illinois
- Threshold is 4 million
- Tax rate is progressive, capping at 16% for over 10.04 million
Oregon
- Threshold is 1 million
- Tax rate is progressive, capping at 16% for over 9.5 million
Maine
Maryland
Massachusetts
- Threshold is 1 million
- Tax rate is progressive, capping at 16% for over 10.04 million
Minnesota
- Threshold is 3 million
- Tax rate is progressive, capping at 16% for over 10.1 million
New York
Rhode Island
- Threshold is $1,579,922
- Tax rate is progressive, capping at 16% for 10.04 million
Vermont
Washington
Washington D.C.
- Threshold is 4 million
- Tax rate is progressive, capping at 16% for over 10 million