We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are State Inheritance Taxes?

By Elise Czajkowski
Updated Feb 26, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

State inheritance taxes are taxes levied on the recipients of an inheritance by state governments in the Unites States. The rules and regulations related to state inheritance taxes may differ from those related to estate taxes. While many states impose a state estate tax, only a few states in the United States impose a state inheritance tax.

While the definitions may vary in different jurisdictions, inheritance taxes and estate taxes are generally not considered the same thing. Estate taxes are taxes that are paid from the estate of the deceased. Inheritance taxes, on the other hand, are paid by beneficiaries who receive assets from the estate.

The relationship between state inheritance taxes and federal estate taxes is not consistent. Many states apply federal tax guidelines to states taxes, meaning that those exempt from federal estate taxes are also exempt from state inheritance tax. In some cases, however, estate assets are not enough to cause the estate to owe federal taxes, but state inheritance taxes may still apply. Additionally, some states impose both a state inheritance tax and a state estate tax.

Tax returns for state inheritance taxes must be filed in the county where the deceased lived. It is the beneficiary of these assets who is responsible for making sure that state inheritance taxes are paid. If these taxes are not paid according to the deadlines set forth in the state tax code, penalties and interest are levied against the beneficiary.

Often, the relationship between the deceased and beneficiary will affect that amount owed under state inheritance taxes. In many cases, the spouse of the deceased may pay little or no taxes on assets received. Similarly, immediate family members of the deceased may pay less in tax than a friend who is bequeathed money in the will but is unrelated to the deceased.

The rules relating to state inheritance taxes change quite frequently. In some areas, these taxes may be unpopular, and some states have considered dropping their state inheritance taxes altogether. Due to the often complex nature of these laws, it is best to be as up-to-date as possible on issues related to inheritance and estate taxes. In many cases, consulting a tax advisor is important to ensure that all tax responsibilities are being met.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.