16. Rhode Island
- Estate tax: Yes
- Estate tax exemption level: $1,579,922
- Estate tax rates: between 0.8 percent and 16 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
Although Rhode Island modifies its estate tax exemption every single year for inflation, the Ocean State still has a low threshold. For 2020, the estate tax exemption here is at $1,579,922, which is 1 of only 3 in the U.S. that is actually less than $2 million.
17. Vermont
- Estate tax: Yes
- Estate tax exemption level: $4.25 million
- Estate tax rate: 16 percent (flat-rate)
- Inheritance tax: No
- Inheritance tax rates: N/A
For this year, Vermont, the Green Mountain State has its estate tax at $4.25 million. However, starting with January, 2o21, the exemption amount will skyrocket to $5 million.
18. Washington
- Estate tax: Yes
- Estate tax exemption level: $2.193 million
- Estate tax rates: between 10 percent and 20 percent
- Inheritance tax: No
- Inheritance tax rates: N/A
Washington imposes an estate tax on those properties that exceed $2.193 million. Take into consideration that the exemption threshold is adjusted annually for inflation. Here, tax rates are between 10 percent and 20 percent.
It’s important to remember that Washington is pretty friendly with family-owned businesses that are valued at less than $6 million. How so? Well.. if you’re in the situation we’ve mentioned, the state will offer you a $2.5 million deduction.
