States Without Inheritance Tax
Only 5 states currently levy an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa repealed its inheritance tax for deaths on or after January 1, 2025. The remaining 45 states (plus DC) have no inheritance tax, meaning beneficiaries receive their full inheritance without state-level taxation. Note that inheritance tax differs from estate tax — inheritance tax is paid by the recipient based on their relationship to the deceased.
- Oklahoma ranks #1 with the lowest cost of living at 83.5.
- Hawaii ranks last at 184.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Mississippi, Kansas, West Virginia.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by cost of living
| # | State | Cost of Living | Median Home Price | Top Income Tax | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83.5 | $225,000 | 4.50% | Inheritance Tax Calculator |
| 2 | Alabama | 85 | $242,000 | 5.00% | Inheritance Tax Calculator |
| 3 | Mississippi | 86.2 | $198,000 | 4.00% | Inheritance Tax Calculator |
| 4 | Kansas | 87.6 | $253,000 | 5.58% | Inheritance Tax Calculator |
| 5 | West Virginia | 87.9 | $183,000 | 4.58% | Inheritance Tax Calculator |
| 6 | Indiana | 88.3 | $262,000 | 2.95% | Inheritance Tax Calculator |
| 7 | Iowa | 88.6 | $241,000 | 3.80% | Inheritance Tax Calculator |
| 8 | Missouri | 88.6 | $272,000 | 4.70% | Inheritance Tax Calculator |
| 9 | Tennessee | 88.9 | $339,000 | 0.00% | Inheritance Tax Calculator |
| 10 | Arkansas | 89.1 | $229,000 | 3.90% | Inheritance Tax Calculator |
| 11 | New Mexico | 89.9 | $321,000 | 5.90% | Inheritance Tax Calculator |
| 12 | Georgia | 90.6 | $335,000 | 4.99% | Inheritance Tax Calculator |
| 13 | North Dakota | 90.7 | $294,000 | 2.50% | Inheritance Tax Calculator |
| 14 | Texas | 90.7 | $303,000 | 0.00% | Inheritance Tax Calculator |
| 15 | Louisiana | 91.1 | $218,000 | 3.00% | Inheritance Tax Calculator |
| 16 | Nebraska | 91.3 | $284,000 | 4.55% | Inheritance Tax Calculator |
| 17 | South Carolina | 91.9 | $309,000 | 5.21% | Inheritance Tax Calculator |
| 18 | Kentucky | 92.5 | $235,000 | 3.50% | Inheritance Tax Calculator |
| 19 | Minnesota | 93.4 | $357,000 | 9.85% | Inheritance Tax Calculator |
| 20 | Ohio | 93.7 | $252,000 | 2.75% | Inheritance Tax Calculator |
| 21 | Wyoming | 93.7 | $373,000 | 0.00% | Inheritance Tax Calculator |
| 22 | Michigan | 93.9 | $270,000 | 4.25% | Inheritance Tax Calculator |
| 23 | South Dakota | 94.1 | $326,000 | 0.00% | Inheritance Tax Calculator |
| 24 | Illinois | 95.1 | $299,000 | 4.95% | Inheritance Tax Calculator |
| 25 | Pennsylvania | 96.2 | $294,000 | 3.07% | Inheritance Tax Calculator |
| 26 | North Carolina | 96.6 | $340,000 | 3.99% | Inheritance Tax Calculator |
| 27 | Wisconsin | 97.4 | $342,000 | 7.65% | Inheritance Tax Calculator |
| 28 | Virginia | 99.1 | $420,000 | 5.75% | Inheritance Tax Calculator |
| 29 | Utah | 100.6 | $542,000 | 4.50% | Inheritance Tax Calculator |
| 30 | Florida | 100.7 | $378,000 | 0.00% | Inheritance Tax Calculator |
| 31 | Nevada | 100.7 | $448,000 | 0.00% | Inheritance Tax Calculator |
| 32 | Delaware | 101.7 | $412,000 | 6.60% | Inheritance Tax Calculator |
| 33 | Idaho | 101.7 | $482,000 | 5.30% | Inheritance Tax Calculator |
| 34 | Colorado | 101.8 | $543,000 | 4.40% | Inheritance Tax Calculator |
| 35 | Montana | 105.9 | $476,000 | 5.65% | Inheritance Tax Calculator |
| 36 | Arizona | 107.6 | $423,000 | 2.50% | Inheritance Tax Calculator |
| 37 | Oregon | 109.6 | $504,000 | 9.90% | Inheritance Tax Calculator |
| 38 | New Hampshire | 110.1 | $523,000 | 0.00% | Inheritance Tax Calculator |
| 39 | Rhode Island | 111.2 | $517,000 | 5.99% | Inheritance Tax Calculator |
| 40 | Vermont | 113 | $402,000 | 8.75% | Inheritance Tax Calculator |
| 41 | Connecticut | 114.2 | $455,000 | 6.99% | Inheritance Tax Calculator |
| 42 | Maine | 114.6 | $424,000 | 7.15% | Inheritance Tax Calculator |
| 43 | Washington | 114.6 | $603,000 | 0.00% | Inheritance Tax Calculator |
| 44 | New Jersey | 118.8 | $585,000 | 10.75% | Inheritance Tax Calculator |
| 45 | Maryland | 121.1 | $436,000 | 6.50% | Inheritance Tax Calculator |
| 46 | New York | 124.7 | $526,000 | 10.90% | Inheritance Tax Calculator |
| 47 | Alaska | 129 | $401,000 | 0.00% | Inheritance Tax Calculator |
| 48 | California | 140.5 | $776,000 | 13.30% | Inheritance Tax Calculator |
| 49 | Massachusetts | 147.8 | $673,000 | 9.00% | Inheritance Tax Calculator |
| 50 | Hawaii | 184.8 | $837,000 | 11.00% | Inheritance Tax Calculator |
Methodology
How we collected and ranked the data
States ranked by cost of living index (ascending) as a tiebreaker since most have no inheritance tax. States with inheritance tax are still included for comparison. Data from state tax codes, Tax Foundation, IRS.
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View all 107 state comparisonsFrequently Asked Questions
Which states have an inheritance tax?
Only 5 states levy inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa repealed its inheritance tax effective January 1, 2025. Maryland is unique in having both an inheritance tax and an estate tax.
What is the difference between inheritance tax and estate tax?
Inheritance tax is paid by the person who receives the inheritance, and rates typically vary based on their relationship to the deceased (spouse, child, sibling, or unrelated). Estate tax is paid by the estate itself before assets are distributed, regardless of who inherits. The federal estate tax exemption is $15 million (2026).
Are spouses exempt from inheritance tax?
Yes, in all states with inheritance tax, surviving spouses are completely exempt. Children and direct descendants typically pay the lowest rates (0–6%), siblings pay moderate rates (4–12%), and unrelated beneficiaries pay the highest rates (10–18%).