States That Won't Tax Your Death

Sure, unless you’re super wealthy, you’ll probably avoid the $13.99 million threshold for the federal estate tax, regardless of which state you die in. But some states aren’t so generous with estate tax exemptions, and others impose another type of death tax, known as an inheritance tax.

Paying state death taxes can become very expensive for the loved ones you leave behind, but you might save them some money if you live — and have assets in — the states on this list.

What is death tax?

Death taxes are tax liabilities incurred by your heirs when you die. Federal death taxes don't apply unless you leave your heirs a multi-million dollar estate. But in some states, heirs pay death taxes on even small inheritances.

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For example, some types of heirs in Nebraska pay a death tax rate of 15% on inheritances over $25,000. The good news is you don't have to worry about state death taxes if you live in a state without estate tax or inheritance tax.

States with no inheritance or estate tax

The states on this list have no death taxes. However, keep in mind that not every state is as tax-friendly when it comes to other taxes and fees or the overall cost of living. For example, although New Hampshire is on this list, property taxes in the state can be relatively high (see below for an annual property tax bill analysis).

So if taxes are a primary consideration for where you live, weigh the pros and cons and consult your financial advisor or a qualified tax professional before making any big moves.

Alabama

Alabama has no death taxes, which will make your heirs happy. And although you’ll pay tax on groceries in this state while you’re still alive, Alabama recently reduced the rate (and further rate reduction is planned for 2025). So, going shopping may be a little less expensive than it used to be.

The Cotton State also has one of the lowest property tax rates in the U.S.. So if you're a homeowner, you might save even more in taxes.

Alaska

Alaska residents can transfer assets to heirs tax-free when they die. You might even be able to leave your loved ones more than you had planned if you move to The Last Frontier. That’s because Alaska will pay you to live there.

You could receive a payment through the state every year through the Permanent Fund Dividend.

• The most recent payment amount was $1,702.
• That means if you received that amount every year, you’d have an extra $42,550 over the course of 25 years, which is sure to make your heirs excited.

Arizona

What’s not to love about Arizona? There aren’t any death taxes, and you’ll even pay a low income tax rate while you’re living out your days. That’s because the state imposes a flat income tax rate of only 2.5%. That’s especially good news if you’re a high earner.

Arkansas

Arkansas might not be your first thought for relocation, but there’s a possibility for tax savings if you do choose this state as your new home.

Not only is there no estate or inheritance tax in the Bear State, but the top income tax rate was reduced last year. More tax savings could mean more money for the loved ones you’ll leave behind one day.

California

You probably haven’t thought about moving to California for tax savings since it’s generally a high-tax state. But your heirs won’t pay any death taxes, and your property taxes might soon be more affordable due to the new SALT deduction cap saving Californians thousands.

However, California's mansion tax is one of the highest in the U.S., with a tax of up to 5.5% on properties sold in certain areas.

Colorado

Death taxes are nonexistent in Colorado, and some residents of the Centennial State will benefit from tax savings before they pass away, thanks to a new Colorado tax credit enacted in 2025.

Additionally, the Centennial State sends property tax relief in the form of Colorado TABOR refunds annually, which could really add up for you and your heirs. Plus the state recently dropped its income tax rate from 4.4% to 4.25%.

Delaware

There are plenty of pros to taxes in Delaware. Of course, there is no estate or inheritance tax in the state since it’s on this list. And there’s no state sales tax in Delaware, either.

Property taxes in the state are on the low end, too. So, both you and your heir can enjoy the tax breaks the state has to offer.

Florida

In addition to Florida offering several cheap places to live, residents may also enjoy major tax savings. For example, the state has no death taxes, no income taxes, and no sales tax on groceries or prescription drugs.

Additionally, a recent Florida property tax break has increased, resulting in a higher homestead exemption on qualifying properties. Although your annual property tax bill may still be high if you live in a more expensive area.

Georgia

You don’t have to worry about your heirs paying a big state tax bill if you die in Georgia. There is no estate or inheritance tax in the state.

Additionally, Georgia won't tax your Social Security benefits, and taxable retirement income is taxed at a recently lowered 5.19% rate. Further discussions are ongoing about a potential elimination of Georgia's income taxes. If passed, that might mean more money for you — and your heirs.

Related: 2025 Georgia Surplus Tax Refund Checks Are Coming: What to Know.

Idaho

Idaho might not be the most popular retirement destination since the state taxes some common types of retirement income, including pensions. But your children won’t have to pay the state when claiming their inheritance in the Gem State.

Idaho also recently reduced its flat income tax rate, which is good news for higher earners. You’ll pay a 5.3% income tax rate regardless of how much you make.

Indiana

Indiana doesn’t have death taxes, and you may be able to pay less taxes while you’re still alive, too, depending on which part of the state you live in. That’s because Indiana has a fairly low flat-income tax rate of 3% for the tax year 2025. However, some counties impose income taxes of their own.

Kansas

Kansas is another state with no estate or inheritance tax .

However, residents of the Sunflower State could pay some hefty taxes when it comes to everyday purchases since Kansas has one of the highest sales tax rates in the country.

Louisiana

Louisiana imposes low taxes in many areas. For example, there are no death taxes, and motorists pay some of the lowest gas tax bills in the country.

However, some taxes in Louisiana aren’t so appealing, such as the state’s sales tax, which is higher than in most states. So, you’ll want to weigh the pros and cons before moving to Louisiana for tax savings.

Related: Louisiana Has a New Income Tax Rate: What It Means for You

Michigan

If you enjoy the colder weather and don’t want your heirs to pay taxes on their inheritances, you might want to consider a move to Michigan.

There is no estate or inheritance tax in the Wolverine State, and Michigan has a flat income tax rate of 4.25%.

Mississippi

Mississippi is a state that taxes groceries, but it won’t tax your death since the state has no estate or inheritance tax.

And Mississippi has a flat state income tax rate of 4.4% as of 2025 on taxable income over $10,000. That is set to reduce even further in 2026, which is good news for the wealthy and everyone else, too. What's more, Mississippi was recently named the most tax-friendly state for retirement by Kiplinger.

Missouri

Your loved ones won’t pay any state death taxes in Missouri, and you won't pay any state tax on your Social Security benefits. The Show-Me State also reduced its top income tax bracket for 2025, which is good news for higher earners.

Montana

Montana doesn’t have death taxes and is one of the states with no sales tax, which includes items like groceries, clothing, and prescription drugs. However, local sales taxes may still apply.

And while income tax rates in Montana aren’t as high as in some states, they aren’t the lowest in the country, either.

Nevada

Nevada doesn’t tax your heirs’ inheritance, and it also happens to be one of the states with no income tax. To make Nevada even more appealing, homeowners in the state enjoy fairly low property tax bills compared to other states. So, there is a lot of potential for tax savings if you live in Nevada.

New Hampshire

New Hampshire doesn’t impose death taxes. And if you plan to make your fortune by winning the lottery, you’re in luck. New Hampshire is one of the states that won’t tax your Powerball winnings.

• There is no personal income tax in New Hampshire.
• There is also no state sales tax in The Granite State.

However, property taxes can be quite high. Recent property tax changes saw some New Hampshire Mobile Home and Condo taxes triple.

New Mexico

If you’ve had your eye set on the Southwest, New Mexico could be a good contender for relocation. Your heirs won’t pay a dime to the state when you die since there is no estate or inheritance tax.

Additionally, high earners won’t pay more than a 5.9% income tax rate in the Land of Enchantment. That’s much lower than in some states.

North Carolina

There are no death taxes in North Carolina, which should make your heirs happy. And low property taxes in the state might make you happy, too.

Although groceries aren’t taxed by North Carolina, watch out for those pesky local sales taxes when you grocery shop.

North Dakota

Not paying an estate or inheritance tax is just one of the tax benefits of living in North Dakota. For example, the highest income tax you’ll pay is 2.5%, and thanks to legislation enacted in recent years, some filers are exempt from paying any state income tax at all. Property tax and sales tax rates in North Dakota are reasonable, too.

Ohio

Your heirs won’t pay anything in Ohio on their newly acquired assets when you die since there are no death taxes in the state. But they might pay some hefty taxes later. That’s because property taxes in Ohio are higher than in most states. So, you might want to keep that in mind when leaving behind real estate (more on that below).

Oklahoma

Oklahoma may be an appealing state to grow your wealth. After all, you can transfer your assets to heirs tax-free after your death. And property tax rates are below average in Oklahoma, too. Income tax rates in the Sooner State could also benefit high earners since they never reach above 4.75%.

South Carolina

Your loved ones won’t get a tax bill from South Carolina when you’re gone since the state doesn't have any estate or inheritance taxes. There are other things to like about taxes in South Carolina, too.

• For one thing, the property tax rate in South Carolina is one of the lowest in the nation.
• And while there are sales taxes in the state, they are reasonable when compared to the rest of the country.

South Dakota

There are no death taxes in South Dakota, and sales taxes are pretty low, too. However, the state does tax some essential items, such as groceries and clothing.

Even so, you’re likely to spend less on state taxes, since South Dakota is a state with no income tax. And who doesn’t love making tax-free money (at least at the state level)? The IRS will still take its share, of course.

Tennessee

There are a few things to love about living — and dying — in Tennessee. Besides not having an estate or inheritance tax, this state also won’t tax your income. So, it’s a win-win for you and your heirs.

However, the Volunteer State does tax groceries, so that’s something to keep in mind before relocating to one of the cheapest places to live in Tennessee.

Texas

Not having to pay state income tax is just one reason some might choose to live in Texas's most affordable places. But sparing heirs from paying death taxes may be another since there aren’t any in the Lone Star State.

And while Texas property taxes can be quite high (the median tax bill is about $4,111), they are less than in some other states that don’t tax retirement income.

Utah

Becoming a resident of Utah could benefit your heirs when you die since there are no death taxes in the state. However, you might find living in the state a little less affordable in some tax areas. For example, Utah is one of only nine states that still taxes Social Security retirement benefits. Paying that extra income tax is definitely a con to living in the Beehive State.

Virginia

While Virginia isn't known for being the most tax-friendly place to live, it isn't necessarily the most high-taxed, either. Depending on where you reside, sales taxes can be quite low, and there is no estate or inheritance tax in Virginia.

Additionally, the commonwealth may have some cheap annual property tax bills in the more affordable places to live in Virginia. Moving to one of these areas might give you more savings for you and your heirs.

West Virginia

West Virginia may not be the most popular retirement spot, but residents can enjoy many tax benefits in the state. Of course, there are no death taxes in West Virginia since it has made this list. But homeowners in the state also pay generally lower property tax bills than in most other states.

Wisconsin

In Wisconsin, your loved ones won’t have to pay a state inheritance or estate tax. And state tax changes effective last year include repealing Wisconsin's personal property tax. But you might find living there less appealing, between generally high property taxes and income tax rates that are higher than in most states on this list.

Wyoming

Wyoming might be a good choice if you’re looking to relocate. For one thing, it was ranked by Kiplinger as one of the best states for middle-class families, due to the state’s generally low tax burden.

Of course, there are no death taxes in Wyoming, which makes it very tax-friendly for your heirs, regardless of your net worth.

Property Taxes in No Death Tax States

One of the primary concerns when passing on a sizeable estate may be high property taxes. While states listed here have no inheritance taxes, the annual property tax bill could come as a shock to potential future heirs.

As such, Kiplinger utilized the 2025 Property Shark dataset to display the median annual property taxes in every state on this list below.

*Note: Cost of living, quality of healthcare, and overall tax landscape may be deciding factors when considering a move. Local and municipal property taxes may also apply. Consult with a finance or tax professional on whether relocation is right for your financial situation.

Read More

• 18 States With Scary Estate and Inheritance Taxes
• New 2025 Estate Tax Exemption Announced
• Filing a Deceased Person's Final Income Tax Return
• How All 50 States Tax Retirees