The middle-aged Pennsylvania couple had lived together for more than a decade, buying a home together and sharing other assets. They never got married. It didn’t matter, they thought. But after he died of cancer recently, leaving her his entire estate, it did matter. A lot. Pennsylvania is one of a handful of states that still imposes an inheritance tax–a tax on transfers from a person who has died to the people who inherit, with rates based on the category of recipient. Transfers to spouses, but not to unmarried partners, are exempt. Pennsylvania subjected everything she was left to inheritance tax at the state’s top 15% rate. The woman, who asked not to be identified, was shocked.

Americans spend a lot of time thinking about where to live for tax purposes. States like Florida and Texas lure both billionaires and ordinary workers by touting their lack of a state income tax. Other states lure seniors with generous exemptions for retirement income. But another question gets less attention: Where is the most expensive place in the U.S. to die?

With the federal estate exemption for 2026 set at a generous $15 million per person ($30 million for a married couple), little more than one in a thousand estates is hit with the federal levy. In contrast, states’ estate and inheritance taxes, as well mandatory estate administration costs, can hit families with more modest wealth surprisingly hard. And since each state tax operates under its own often arcane rules, those costs can come as an unpleasant surprise. But with some advance knowledge and planning, they often can be minimized.

As the map shows, 15 states and Washington, D.C have either inheritance or estate taxes. Maryland has both. Meanwhile, another five states, including death-tax-free California and Florida, impose stiff fees to probate (that is, get court approval for) an estate and/or require a family to pay attorneys. Below the map, we explain what you need to know about how state death taxes work and how you can reduce them, including by making gifts well before your death.

Estate Tax vs. Inheritance Tax

State death taxes come in two varieties. An estate tax is imposed on the estate itself before assets are distributed. In other words, the state taxes the estate on everything left (above an exemption amount) to anyone other than a legal spouse or charity. The rate usually rises with the size of the estate.

An inheritance tax is technically imposed on the beneficiary (though a will might provide that it is to be paid by the estate), with the tax rate depending on who receives the money. As with the estate tax, what’s left to a spouse or charity usually isn’t taxed. But bequests to a child, sibling, cousin, friend, or unmarried partner can receive very different tax treatment, even if those parties inherit the same amount of money.

In 2026, the District of Columbia and 12 states–Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington–impose an estate tax. State exemptions from tax vary widely. Connecticut has tied its to the federal exemption and so it sits at a hefty $15 million per person for 2026. But all the others are far below the federal exemption. Oregon’s tax kicks in at $1 million and Massachusetts’ at $2 million. Washington state’s exemption sits at $3.076 million, but is being rolled back to $3 million effective July 1, 2026, with a new top marginal rate of 20%, down from 35%. Illinois’ exemption is $4 million, while Maryland's and Vermont's are $5........

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