California, Arizona, Nevada, Utah and Idaho are among the many states that do not have an inheritance tax, as of 2014, according to the Tax Foundation. Montana, Wyoming, North Dakota, South Dakota and Colorado are others. In fact, most states do not assess inheritance tax.
Estate tax is a federal or state tax on property that a person owns at death and is transferred to another person or entity through a will or through the state laws that govern the assets of people who die without a will, called intestacy laws. Everything a person owns at death, including cash, stoc
As of 2015, only 15 states and the District of Columbia collect estate tax from their residents, according to About.com. The maximum estate tax rate varies from 9.5 percent in Tennessee to 20 percent in Washington for the 2015 tax year.
Ways to avoid federal estate tax include gifting property up to the allowed annual amount or establishing certain trusts, Nolo advises. People can also pay for someone's school tuition or gift property to charity to avoid federal estate tax.
Representatives of a deceased person pay estate taxes before the money is distributed to beneficiaries, and taxpayers pay income taxes on their earnings, according to TurboTax. Individuals who receive money from an estate aren't required to pay federal taxes on their inheritance, although individual
States, counties and other municipalities impose real estate transfer tax on the transfer of real estate titles within their jurisdictions, according to the National Conference of State Legislatures. As of 2015, 37 states and the District of Columbia impose real estate transfer taxes on transfers of
The estate tax rates in Maine range between 8 percent and 12 percent of all estates valued over $2 million. Estates valued under $2 million are not required to pay estate tax, according to Executor's Corner.
Real estate taxes are assessed on real or fixed property, such as a house, while personal property taxes are assessed on items that are not fixed and can be moved, according to the Lincoln Institute of Land Policy. Examples of personal property include cars, boats, and in some cases, mobile homes.
Municipalities in the state of New York set their own commercial real estate tax rates, according to the New York State Department of Taxation and Finance. As of 2015, New York City commercial real estate tax rates range from 10.656 percent to 19.554 percent, states the city's Department of Finance.
An estate tax exemption, according to the Internal Revenue Service, is allowed when estate tax is not due on an estate after its owner's death. As of 2014, exemptions are offered on estates worth less than $5.34 million, estates left to charity and estates left to surviving spouses.