13. New York
- Estate tax: Yes
- Estate tax exemption level: $5.85 million
- Estate tax rates: between 3.06 percent and 16 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
For this year, properties that surpass $5.85 million are subject to the estate tax, and the threshold is modified every single year for inflation. Here, taxable gifts made by a decedent are also included in the value of the estate.
14. Oregon
- Estate tax: Yes
- Estate tax exemption level: $1 million
- Estate tax rates: between 10 percent and 16 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
When referring to estate taxes, you should definitely be scared of living (sorry, dying) in the Beaver State. Oregon hasn’t increased its estate tax exemption and it doesn’t even modify it for inflation.
If the property you inherited is valued at let’s say $1 million, you’ll have to pay estate taxes; the estate tax rate is also high: a 10 percent tax rate on each qualifying property.
15. Pennsylvania
- Estate tax: No
- Estate tax exemption level: N/A
- Estate tax rates: N/A
- Inheritance tax: Yes
- Inheritance tax rates: between 4.5 percent and 15 percent
If you, as the decedent’s spouse, parent, or child inherited a property, the inheritance tax doesn’t apply. The inheritance tax comes in at a 4.5 percent rate only for the decedent’s parents (note that if the decedent is 21 years old or younger, he or she is except), lineal descendants, daughter/son-in-law, or grandparents.
Things get pretty ugly when you inherit the estate from a sibling: the rate is 12 percent. For other heirs, the same rate is 15 percent. However, you as the heir, can take advantage of a 5 percent discount if the tax is actually paid within 3 months of the decedent’s death.
