7. Maine
- Estate tax: Yes
- Estate tax exemption level: $5.8 million
- Estate tax rates: between 8 percent and 12 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
Maine’s estate taxes are “a joke” compared to others listed here. Why? Because the tax applies to properties that are worth $5.8 million or more, and since most properties aren’t so valuable, you should be fine.
The Pine Tree State’s estate tax rates are okay as well. The maximum rate is 12 percent, which is the same as Connecticut’s
8. Maryland
- Estate tax: Yes
- Estate tax exemption level: $5 million
- Estate tax rate: between 0.8 percent and 16 percent
- Inheritance tax: Yes
- Inheritance tax rates: 10 percent (flat-rate)
This year, Maryland’s estate tax exemption is $5 million, and its rates range from 0.8 percent to 16 percent. Also, the state has a flat 10 percent inheritance tax and those who are exempt from paying it are the following: parents, children, the decedent’s spouse, grandparents, grandchildren, sons/daughters-in-law, siblings, and the surviving spouse of a deceased child.
On top of this, if the value of the inherited property doesn’t exceed $1,000, it is not subject to the tax, no matter the heir’s relationship with the deceased.
9. Massachusetts
- Estate tax: Yes
- Estate tax exemption level: $1 million
- Estate tax rates: between 0.8 percent and 16 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
The estate tax exemption in Massachusetts has spread its roots to $1 million. The Bay State has an unlimited marital deduction when it comes to estates that are left to a surviving spouse and also an unlimited charitable deduction when referring to estates that are given to a qualified charity.
