Where You Live Matters

Choosing where to retire may matter as much as choosing when to retire. There are many factors that go in to deciding the best place to retire including how your retirement income, property, expenses and more will be taxed. Use the interactive map below to help you decide.1

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INHERITANCE AND ESTATE TAX5
Select a State in the menu below for more information about its Inheritance and Estate Taxes:

Alabama


Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited to federal estate tax collection. For further information, visit the Alabama Department of Revenue site or call 334-242-1170. If you are thinking about retiring to Alabama, click here.
* For joint returns, the taxes are twice the tax imposed on half the income.

Alaska


Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited to federal estate tax collection. For further information, visit the Alaska Department of Revenue site.

Arizona


Inheritance and Estate Taxes
There is no inheritance or gift tax and the estate tax does not apply to decedents whose date of death is on or after January 1, 2006. For further information, visit the Arizona Department of Revenue site. For questions about moving to Arizona, click here. For other tax questions, call 602-255-3381.
* For joint returns, the taxes are twice the tax imposed on half the income.

Arkansas


Inheritance and Estate Taxes
There is no inheritance tax. In 2003 the estate tax was repealed for those deceased after January 1, 2005. For further information, visit the Arkansas Department of Finance and Administration site or call 501-682-7225. For general tax information, click here. For a booklet on moving to Arkansas, click here.
* A special tax table is available for low-income taxpayers reducing their tax payments.

California


Inheritance and Estate Taxes
There is no inheritance tax. However, there is a limited California estate tax related to federal estate tax collection. For further information, visit the California Franchise Tax Board or the California State Board of Equalization.
* Does not include 1 cent local option.
** For joint returns, the taxes are twice the tax imposed on half the income.

Colorado


Inheritance and Estate Taxes
There is no inheritance tax and the Colorado estate tax does not apply to decedents whose date of death is on or after January 1, 2005. For further information, visit the Colorado Department of Revenue site or call 303-232-2446.

Connecticut


Inheritance and Estate Taxes
Connecticut imposes an estate tax which taxes the transfer of estates valued at $3.5 million or more at a progressive rate starting with 5 percent of the first $100,000 over the threshold and rising to 16 percent for the amount above $10 million. This is applicable to estates of decedents dying on or after January 1, 2010. For further information, visit the Connecticut Department of Revenue site. Also click here for more details.
* For joint returns, the taxes are twice the tax imposed on half the income.
** Combined personal exemptions and standard deduction. An additional tax credit is allowed ranging from 75% to 0% based on state adjusted gross income. Exemption amounts are phased out for higher income taxpayers until they are eliminated for household earning over $52,000.

Delaware


Inheritance and Estate Taxes
In July 2005 the legislature eliminated the requirement to file a Delaware estate tax return for dates on which the federal estate tax law does not allow a credit for state death tax (currently 2005 through 2010). It has now been reinstated for decedents dying after June 30, 2009. For further information, visit the Delaware Division of Revenue site or call 302-577-8200.

District of Columbia


Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax. For further information, visit the District of Columbia Office of the Chief Financial Officer site or call 202-727-2476.

Florida


Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax. To review information for new residents, click here. For general information on Florida taxes, visit the Florida Department of Revenue site or call 800-352-3671.
* Includes local county taxes.

Georgia


Inheritance and Estate Taxes
There is no inheritance tax or gift tax and only a limited estate tax which is an amount equal to the amount allowable as a credit for state death taxes under Section 2011 of the Internal Revenue Code. In effect, the estate taxes paid to Georgia may be used to reduce the estate taxes due the IRS. For further information, visit the Georgia Department of Revenue site.
* The tax brackets are for single individuals. For joint filers the income brackets range from $1,000 to $10,000.

Hawaii


Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax related to federal estate tax collection. For further information, visit the Hawaii Department of Taxation site or call 800-222-3229 or 808-587-4242.

Idaho


Inheritance and Estate Taxes
At the current time Idaho does not have an inheritance tax, gift tax or an estate tax. For further information, visit the Idaho State Tax Commission site.
* For joint returns, the taxes are twice the tax imposed on half the income. A $10 filing tax is charged for each return and a $20 credit is allowed for each exemption.
** Idaho allows personal exemption or standard exemption as provided in the Internal Revenue Code.

Illinois


Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax related to federal estate tax collection. Up until 2010 a $2 million exclusion is allowed. For further information, visit the Illinois Department of Revenue site or call 800-732-8866.
* Tax rates do not include local options – 5 cents in Chicago and 6 cents in Cook County.

Indiana


Inheritance and Estate Taxes
The inheritance tax (Class A) ranges from 1% to 10% based on fair market value of property transferred at death. The estate tax is the amount by which federal credit exceeds inheritance taxes paid to all states. Click for details. For further information, visit the Indiana Department of Revenue site.
* Includes local county taxes

Iowa


Inheritance and Estate Taxes
The Iowa inheritance tax ranges from 1% to 15% depending on the amount of the inheritance and the relationship of the recipient to the decedent. If all the property of the estate has a value of less than $25,000, no tax is due. The surviving spouse's share, regardless of the amount, is not subject to tax. Currently annual gifts in the amount of $12,000 or less are not taxable. Click here for details. Iowa estate tax is not applicable for deaths on or after 1/1/05 due to changes in the IRS Code which replaced the state death tax credit with a state death tax deduction. For further information, visit the Iowa Department of Revenue or call 515-281-3114.

Kansas


Inheritance and Estate Taxes
A new estate tax is in effect and will apply through 2009. After that there will not be an estate tax. Estates valued at over $1,000,000 will be subject to the tax. The tax rates for deaths that occurred in 2007 begin at 3%, for 2008 the rates begin at 1%, and for 2009 the rates begin at 0.5%. For further information, visit the Kansas Department of Revenue site.
*For joint returns, the taxes are twice the tax imposed on half the income.

Kentucky


Inheritance and Estate Taxes
Kentucky has an inheritance tax but all Class A beneficiaries (spouse, parent, child, grandchild, brother, and sister) are exempt. As for the estate tax, if the total amount of the estate is less than the federal applicable exclusion, federal estate and gift tax is not due. For further information, visit the Kentucky Department of Revenue site or call 502-564-4581.

Louisiana


Inheritance and Estate Taxes
Effective January 1, 2008, the inheritance tax is not applicable to deaths that occur after June 30, 2004. See Acts 2008, No. 822. Louisiana does levy an estate transfer tax. Revised Statute 47.2436 requires that an estate transfer tax return be filed by or on behalf of the heirs or legatees in every case where estate transfer tax is due or where the value of the deceased's net estate is $60,000.00 or more. For further information, visit the Louisiana Department of Revenue site or call 255-219-0102. Additional information can be found at the Louisiana Tax Commission site.
* For joint returns, the taxes are twice the tax imposed on half the income.
** Combined personal exemption and standard deduction.

Maine


Inheritance and Estate Taxes
There is no inheritance tax. Maine has partially decoupled from the federal estate tax law. The amount exempt from the Maine estate tax is different from the amount exempt from federal estate tax. A decedent would have their estate exempt for up to $1,000,000. Click here for more information. For further information, visit the Maine Revenue Services site.
* For joint returns, the taxes are twice the tax imposed on half the income.

Maryland


Inheritance and Estate Taxes
Maryland collects an inheritance tax. Property passing to a spouse, child or other lineal descendent, spouse of a child or other lineal descendant, parent, grandparent or sibling, is exempt from taxation. Property passing to other individuals is subject to a 10% tax rate. Currently, a Maryland estate tax return must be filed if the decedent's federal gross estate, plus adjusted taxable gifts, is $1,000,000 or greater, and the decedent was either a resident of Maryland at the time of death or a nonresident who owned real or tangible personal property in Maryland. The tax rate is limited to 16 percent of the amount that the estate value exceeds $1,000,000. Law changes enacted in 2006 affected the estate tax calculation, filing requirements, extension requests and interest and penalties. The estate tax is limited to federal estate tax collection. For more information on inheritance taxes click here. For estate tax information, click here. For further information on Maryland taxes in general, visit the Maryland Comptroller of the Treasury site.

Massachusetts


Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax on estates valued at $1,000,000 or more. Information for new residents can be found here. For further information, visit the Massachusetts Department of Revenue site.

Michigan


Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection. For further information, visit the Michigan Taxes web site. Seniors are invited to click here or call a special assistance number: 800-487-7000.

Minnesota


Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection. For further information, visit the Minnesota Department of Revenue site.
* The tax brackets reported are for single taxpayers. For married taxpayers filing jointly, the same rates apply to income brackets ranging from $31,860 to $126,580 (2008).
** Minnesota allows personal exemption or standard deductions as provided in the Internal Revenue Code.

Mississippi


Inheritance and Estate Taxes
There is no inheritance tax. An estate tax is imposed on the value of a decedent's estate when the total gross estate exceeds the federal exemption of $1,000,000. The exemption amount will follow the federal exclusion under 26 USC 2010. For further information, visit the Mississippi State Tax Commission site or call 601-923-7000.

Missouri


Inheritance and Estate Taxes
Since the IRS will no longer allow a state death tax credit for deaths occurring on or after January 1, 2005, no Missouri estate tax is imposed. Therefore, no estate tax return must be filed for deaths occurring on or after January 1, 2005. For information about moving to Missouri, click here. For further information about state taxes, visit the Missouri Department of Revenue site.

Montana


Inheritance and Estate Taxes
There is no inheritance tax and no estate tax is due for deaths occurring in 2005 and thereafter. For further information, visit the Montana Department of Revenue site or call 406-444-6900. Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation.

Nebraska


Inheritance and Estate Taxes
Nebraska's inheritance tax, which is collected at the county level, applies to bequests, devises, or transfers of property or any other interest in trust or otherwise having characteristics of annuities, life estates, terms for years, remainders, or reversions. Nebraska inheritance tax is computed on the fair market value of such annuities, life estates, terms for years, remainders, and reversions. The fair market value is the present value as determined under the provisions of the Internal Revenue Code of 1954, as amended, and its applicable regulations with respect to estate tax. The Nebraska estate tax and generation-skipping transfer tax have been repealed for decedents dying or transfers made on or after January 1, 2007. For further information, visit the Nebraska Department of Revenue site.
* The tax brackets reported are for a single individual. For married couples filing jointly, the same rates apply for income under $4,000 to over $50,000. Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation.

Nevada


Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection. For further information, visit the Nevada Department of Taxation site.

New Hampshire


Inheritance and Estate Taxes
New Hampshire's Legacy & Succession Tax was repealed in 2002 and is effective for deaths occurring on or after January 1, 2003. As a result there is no inheritance or estate tax. For further information, visit the New Hampshire Department of Revenue Administration site or call 603-271-2318.

New Jersey


Inheritance and Estate Taxes
New Jersey imposes a transfer inheritance tax, at graduated rates ranging from 11% to 16%, on the transfer of real and personal property having a total value of $500 or more which passes from a decedent to a beneficiary. If a decedent's death occurs on or after July 1, 1988, property passing to a decedent's surviving spouse, surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax. In addition to the inheritance tax, New Jersey imposes a separate estate tax. An estate may be subject to the New Jersey Estate Tax even though there is no New Jersey Inheritance Tax payable. For decedents with a date of death prior to January 1, 2002 the New Jersey Estate Tax was designed to absorb the maximum credit for state inheritance, estate, succession or legacy taxes allowable in the Federal estate tax proceeding. It did not increase the estate's total estate tax obligation. For decedents with a date of death on or after January 1, 2002 the New Jersey Estate Tax was decoupled from the Federal estate tax proceeding. The New Jersey Estate tax is based upon the Federal Estate tax credit for state death taxes which was allowable under the provisions of the Internal Revenue Code in effect on December 31, 2001. The Federal Estate Tax does not have a provision providing a deduction for property passing to a domestic partner. Information pertaining to the estate and inheritance tax may be obtained by calling 609-292-5033 or 609-292-5035. For further information, visit the New Jersey Department of Taxation site.
* The tax brackets reported are for a single individual. A separate schedule is provided for married households filing jointly which ranges from 1.4% under $20,000 to 8.97 for income over $500,000.

New Mexico


Inheritance and Estate Taxes
There is no inheritance tax but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way. The estate tax is related to federal estate tax collection. For further information, visit the New Mexico Taxation and Revenue Department site. Information for new residents, click here.
* The tax brackets reported are for a single individual. For married individuals filing jointly, the rate ranges from 1.7% under $8,000 to 5.3% over $24,000. Married households filing separately pay the tax imposed on half the income.
** New Mexico allows personal exemptions or standard deductions as provided in the Internal Revenue Code.

New York


Inheritance and Estate Taxes
There is no inheritance tax. Regarding the estate tax, if the date of death is on or after January 1, 2004, the estate must file a New York State estate tax return if any one of the following conditions are met: (1) The decedent was domiciled in New York State at the time of death and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1 million; (2) The decedent was not domiciled in New York State at the time of death and the estate includes real or tangible personal property with a situs in New York State, and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1 million; or (3) The decedent was neither a resident nor a citizen of the United States, the estate includes real or tangible personal property with a situs in New York State, and the estate is required to file a federal estate tax return. For further information, visit the New York Department of Taxation and Finance site.
* For joint returns, the taxes are twice the tax imposed on half the income.

North Carolina


Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to federal estate tax collection. For further information, visit the North Carolina Department of Revenue site.
* The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $21,250 to $200,000. An additional middle income tax credit is allowed.
** Taxpayers who claim standard deduction or itemize deductions on federal return must make adjustments.

North Dakota


Inheritance and Estate Taxes
North Dakota does not have an inheritance tax. It was repealed in 1927 and replaced with an estate tax. There is an estate tax based on a decedent's total gross estate and limited to the credit for state death taxes allowed on the Federal 706 estate tax return. For further information, visit the North Dakota State Tax Department site or call 701-328-3275.
* Rates for single person.
** State allows personal exemption or standard deductions as provided in the Internal Revenue Code.

Ohio


Inheritance and Estate Taxes
Ohio has no inheritance tax but an estate tax is levied against the value of a resident decedent's gross estate less deductions and exemptions. If the net taxable estate is over $338,333 but not over $500,000, the tax is $13,900 plus 6% of the excess over $338,333. If the net taxable estate is over $500,000, the tax is $23,600 plus 7% of the excess over $500,000. The estates of armed forces members who died while serving in a combat zone are exempt from probate fees. Call 800-977-7711 for details. For further information, visit the Ohio Department of Taxation site.
* Add an additional $20 per exemption tax credit.

Oklahoma


Inheritance and Estate Taxes
There is no inheritance tax but there is an estate tax. Estate tax is ½% to 10% of the net estate at the time of death and is independent of the federal estate tax. It also imposes an additional estate tax that is essentially designed to absorb any available federal estate credit for state death taxes. The amount of Oklahoma estate tax imposed depends on who gets what. For details, click here. For further information, visit the Oklahoma Tax Commission site or call 405-521-3160.
* The rate range reported is for single persons not deducting federal income tax. For married persons filing jointly, the same rates apply to income brackets ranging from $2,000 to over $21,000. Separate schedules, with rates ranging from 0.5% to 10%, apply to taxpayers deducting federal income taxes.

Oregon


Inheritance and Estate Taxes
An Oregon inheritance tax return is required to be filed whenever a federal estate tax return (Form 706) is required to be filed. For a resident decedent, Oregon taxes real property and tangible personal property located in Oregon and intangible personal property wherever it is located. For a nonresident decedent, Oregon taxes real property, tangible personal property, and intangible personal property located in Oregon. An exemption is allowed for intangible personal property located in Oregon if a like exemption is allowed by the state of residence. For further information, visit the Oregon Department of Revenue site or call 503-378-4988.
* Tax rates do not include local option taxes of 1 to 2 cents.
** For joint returns, the taxes are twice the tax imposed on half the income.
Note: Oregon has a statutory provision for automatic adjustment of tax brackets, personal exemption or standard deductions to the rate of inflation.

Pennsylvania


Inheritance and Estate Taxes
The Pennsylvania inheritance tax is calculated at a percentage of the value of the assets transferred which is determined by the relationship of the heir to the decedent and the decedent's date of death. The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs (except charitable organizations, exempt institutions, and government entities). Property owned jointly between husband and wife is exempt from the tax, while property inherited from a spouse, or from a child 21 or younger by a parent is exempt. The estate tax is related to federal estate tax collection. For further information, visit the Pennsylvania Department of Revenue site or call 717-787-8201.

Rhode Island


Inheritance and Estate Taxes
There is no inheritance tax. Rhode Island imposes a tax on the transfer of the net value of the assets of every resident decedent and the value of real and personal property of nonresident decedents located within this state. The tax is apportioned in accordance with the location of the assets with actual situs (both real and persona property) in another state. The fraction is Rhode Island assets over total estate assets. The Rhode Island estate tax is designed to absorb the federal estate tax credit for state death taxes. However, the state has decoupled from current federal estate tax laws and adopts the version of the Internal Revenue Code in effect on January 1, 2001. The estate tax exemption is $850,000. Estates of decedents who are declared missing in action by the armed forces of the United States are not subject to the state's estate tax. For further information, visit the Rhode Island Division of Taxation site or call 401-222-1111.

South Carolina


Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to federal estate tax collection. For further information, visit the South Carolina Department of Revenue site or 800-763-1295. If you are planning to move to South Carolina, this link will provide you with some helpful information.
* State allows personal exemption or standard deductions as provided in the Internal Revenue Code.

South Dakota


Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited and related to federal estate tax collection. For further information, visit the South Dakota Department of Revenue site or call 800-829-9188.
* Tax rates do not include local option tax of 1 cent.

Tennessee


Inheritance and Estate Taxes
There is an inheritance tax in which all real and personal property which the decedent owned or has an interest is taxed. It ranges from 5.5% to 9.5% of the value of the property transferred at death. Spouses are exempt. The estate tax is limited and related to federal estate tax collection. For more information, click here or call 615-532-6438. For further information, visit the Tennessee Department of Revenue site or call 615-741-2837.
* Tax rates do not include local option tax of 1 cent.

Texas


Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection. For further information, visit the Texas Comptroller of Public Accounts site or call the appropriate office using telephone numbers found on the site.

Utah


Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection. For further information, visit the Utah State Tax Commission site or call 800-662-4335.
* For joint returns, the taxes are twice the tax imposed on half the income.
** Utah allows a personal exemption equal to 75% of the federal exemption.

Vermont


Inheritance and Estate Taxes
Although Vermont does not have an inheritance tax, it has an estate tax. Vermont Estate Tax Return must be filed if the decedent had Vermont income and filed U.S. Estate Tax Return. Federal estate tax returns are required when an estate exceeds specified gross estate values. In 2009, estates valued at more than $3.5 million will have to pay a tax. For further information, visit the Vermont Department of Taxes site or call 802-828-2865.

Virginia


Inheritance and Estate Taxes
There is no inheritance tax. The estate tax has been repealed for the estates of decedents whose date of death occurs on or after July 1, 2007. For further information, visit the Virginia Department of Taxation site or call 804-367-8031.
* Tax rates do not include local option tax of 2%.

Washington


Inheritance and Estate Taxes
Washington replaced the inheritance tax in 1982 with an estate tax. Effective January 1, 2009 the Washington State filing threshold is different from the federal filing threshold for completing the estate tax return. If the decedent has a gross estate or a taxable estate plus taxable gifts of $2,000,000 or more, the estate is required to file a Washington State estate tax return. If the decedent has a gross estate or taxable estate plus taxable gifts of $3,500,000 or more, the estate is required to file a Washington State estate tax return. For further information, visit the Washington Department of Revenue site or call 800-647-7706.

West Virginia


Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection. For further information, visit the West Virginia State Tax Department site or call 304-558-3333 or 800-982-8297. Also visit the West Virginia Department of Revenue.
* For joint returns, the taxes are twice the tax imposed on half the income.

Wisconsin


Inheritance and Estate Taxes
There is no inheritance tax but Wisconsin does have an estate tax. A new provision was added to the Wisconsin statutes for deaths occurring from October 1, 2002, through December 21, 2007. The federal credit for state death taxes and the federal estate tax for deaths occurring between those dates shall be commuted under the federal estate tax law in effect on December 31, 2000. For deaths occurring after October 1, 2007, the federal credit for state death taxes and the federal estate tax shall be computed under the federal estate tax law in effect on the date of the decedent's death. For deaths occurring on or after January 1, 2008, the federal credit for state death taxes and the federal estate tax shall be computed under the federal estate tax law in effect on the date of the decedent's death. This means that the requirement for filing a Wisconsin estate tax return was $1,000,000 for deaths occurring from January 1, 2002, through September 30, 2002, and then went back to $675,000 for deaths occurring from October 1, 2002, through December 31, 2007. Therefore, the Wisconsin filing requirement is different from the federal requirement, which is $2,000,000 in 2007. If the decedent's gross estate is more than $675,000 for a death occurring between October 1, 2002, and December 31, 2007, a Wisconsin estate tax return must be filed even if no federal estate tax return is required. The future Wisconsin filing requirements are based on the gross estate, and are as follows: January 1, 2008 through December 31, 2010, there is no estate tax. In 2011 the requirement for filing is an estate of $1,000,000. For details on the estate tax, click here or call 608-266-2772. For further information, visit the Wisconsin Department of Revenue site or call 608-266-2772. For specific retiree information, click here.
* The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $12,680 to $190,210.

Wyoming


Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection. For more information, visit the Wyoming Department of Revenue site or call 307-777-5287.
  1. Sources: IRS.gov, AARP, TaxFoundation.org
  2. Low Sales Tax is defined as 4.5% or lower
  3. High Sales Tax is defined as 7% or higher
  4. These states allow no exemption or tax credit for pension and retirement income that is counted in Federal adjusted gross income. Source: AARP State Taxation of Social Security and Pension in 2006
  5. Data source: Retirement Living Information Center. Used by permission. For more information on the Retirement Living Information Center about taxes, please visit http://retirementliving.com/RLtaxes.html. All information is updated as of January, 2010. Any changes by states to the applicable laws since then will not be reflected in this information. This material was prepared to support the promotion and marketing of insurance and investment company products. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.
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