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Best states to die in?
Everyone knows what the federal estate tax limits are. If not, you should find out. But, did you know that the state you die in can affect your estate? While 26 states currently have no state estate tax, 19 states plus the District of Columbia have estate taxes. Another eight states charge the beneficiaries an inheritance tax. Of those totals, there are three states that tax your estate and charge your beneficiaries an inheritance tax. Make sure you carefully consider where you die if you have a large, taxable estate.
| State |
Estate Tax? |
Inheritance Tax? |
| Alabama |
No |
No |
| Alaska |
No |
No |
| Arizona |
No |
No |
| Arkansas |
No |
No |
| California |
No |
No |
| Colorado |
No |
No |
| Connecticut |
No |
Yes |
| Delaware |
No |
No |
| Florida |
No |
No |
| Georgia |
No |
No |
| Hawaii |
No |
No |
| Idaho |
No |
No |
| Illinois |
Yes |
No |
| Indiana |
No |
Yes |
| Iowa |
No |
Yes |
| Kansas |
Yes |
No |
| Kentucky |
No |
Yes |
| Louisiana |
No |
No |
| Maine |
Yes |
No |
| Maryland |
Yes |
Yes |
| Massachusetts |
Yes |
No |
| Michigan |
No |
No |
| Minnesota |
Yes |
No |
| Mississippi |
No |
No |
| Missouri |
No |
No |
| Montana |
No |
No |
| Nebraska |
Yes |
Yes |
| Nevada |
No |
No |
| New Hampshire |
No |
No |
| New Jersey |
Yes |
Yes |
| New Mexico |
No |
No |
| New York |
Yes |
No |
| North Carolina * |
Yes |
No |
| North Dakota |
No |
No |
| Ohio |
Yes |
No |
| Oklahoma |
Yes |
No |
| Oregon |
Yes |
No |
| Pennsylvania |
No |
Yes |
| Rhode Island |
Yes |
No |
| South Carolina |
No |
No |
| South Dakota |
No |
No |
| Tennessee |
Yes |
No |
| Texas |
No |
No |
| Utah |
No |
No |
| Vermont |
Yes |
No |
| Virginia |
Yes |
No |
| Washington |
Yes |
No |
| Washington D.C. |
No |
No |
| West Virginia |
No |
No |
| Wisconsin |
Yes |
No |
| Wyoming |
No |
No |
* North Carolina's estate tax will disappear July 1, 2005
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