Try to Avoid Dying in These States

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

Chew on This: The Story Behind Your Hershey’s Halloween TreatsBusiness

Nineteen states have death taxes. Does yours?

You know what they say about death and taxes. And when it comes to death taxes, it appears that some states are not good places to die.

The American Taxpayer Relief Act of 2012 made permanent a $5 million federal estate tax exemption, which is indexed annually for inflation. But that doesn’t mean you’re in the clear. Nineteen states and the District of Columbia have their own estate and/or inheritance taxes.

According to Forbes:

For 2014, up to $5.34 million of an individual’s estate will be exempt from federal estate tax, with a 40 percent tax rate applied to any excess over the exemption amount. By contrast, states with estate taxes typically exempt far less per estate from their tax and impose a top rate of 16 percent. As in the federal system, bequests to a spouse are tax-free.

Will you be impacted by state estate or inheritance taxes? Let’s find out.

Estate taxes, including tax rates. These are “based on the entire value of your estate in excess of the applicable exemption,” wrote Bill Bischoff on MarketWatch.

  • Less than $1 million exemption – New Jersey and Rhode Island (both 16 percent).
  • $1 million exemption – Maryland, Massachusetts, Minnesota, New York, Oregon, and the District of Columbia (all 16 percent).
  • $2 million exemption – Connecticut (12 percent), Maine (12 percent) and Washington (19 percent).
  • $5.25 million exemption – Delaware and Hawaii (both 16 percent).

Inheritance taxes. These are “assessed on the value of specific inherited assets in excess of the applicable exemption,” Bischoff wrote. The exemptions are zero or otherwise pretty small, except for Tennessee, where it’s $1.25 million for 2013. The maximum tax rates for 2013 are:

  • Iowa – 5 percent.
  • Kentucky – 16 percent.
  • Maryland – 10 percent.
  • Nebraska – 18 percent.
  • New Jersey – 16 percent.
  • Pennsylvania – 15 percent.
  • Tennessee – 9.5 percent.

Maryland and New Jersey impose both an estate and inheritance tax.

Bischoff says that “state inheritance and estate taxes are subtracted from the value of the taxable estate in calculating the federal estate tax.”

While death taxes alone might not be a reason to move from your beloved home, they are something you should discuss with an estate planning professional.

Could you be impacted by state death taxes? Tell us below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 7 Ways to Save More at Big Lots

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,731 more deals!