This chart is maintained for the McGuireWoods LLP Website and is updated regularly.

State Type of Tax Effect of EGTRRA on Pick-up Tax and Size of Gross Estate Legislation Affecting State Death Tax 2014 State Death Tax Threshold
Alabama None Tax is tied to federal state death tax credit. AL ST § 40-15-2.
Alaska None Tax is tied to federal state death tax credit. AK ST § 43.31.011.
Arizona None Tax was tied to federal state death tax credit. AZ ST §§ 42-4051; 42-4001(2), (12).

On May 8, 2006, Governor Napolitano signed SB 1170 which permanently repealed Arizona's state estate tax.
Arkansas None Tax is tied to federal state death tax credit. AR ST § 26-59-103; 26-59-106; 26-59-109, as amended March, 2003.
California None Tax is tied to federal state death tax credit. CA REV & TAX §§ 13302; 13411.
Colorado None Tax is tied to federal state death tax credit. CO ST §§ 39-23.5-103; 39-23.5-102.
Connecticut Separate Estate Tax As part of the two year budget which became law on September 8, 2009, the exemption for the separate estate and gift taxes was increased to $3.5 million, effective January 1, 2010, the tax rates were reduced to a spread of 7.2% to 12%, and effective for decedents dying on or after January 1, 2010, the Connecticut tax is due six months after the date of death. CT ST § 12-391. In May 2011, the threshold was lowered to $2 million retroactive to January 1, 2011. $2,000,000
Delaware Pick up Only For decedents dying after June 30, 2009.

The federal deduction for state death taxes is not taken into account in calculating the state tax.

DE ST TI 30 §§ 1502(c)(2).

 On March 28, 2013, the Governor signed HB 51 to eliminate the four year sunset provision that originally applied to the tax as enacted in June 2009. $5,340,000 (indexed for inflation)
District of Columbia Pick-up Only Tax frozen at federal state death tax credit in effect on January 1, 2001.

In 2003, tax imposed only on estates exceeding EGTRRA applicable exclusion amount. Thereafter, tax imposed on estates exceeding $1 million. DC CODE §§ 47-3702; 47-3701; approved by Mayor on June 20, 2003; effective retroactively to death occurring on and after January 1, 2003.

No separate state QTIP election.		 $1,000,000
Florida None Tax is tied to federal state death tax credit. FL ST § 198.02; FL CONST. Art. VII, Sec. 5
Georgia None Tax is tied to federal state death tax credit. GA ST § 48-12-2.
Hawaii Modified Pick-up Tax Tax was tied to federal state death tax credit. HI ST §§ 236D-3; 236D-2; 236D-B

The Hawaii Legislature on April 30, 2010 overrode the Governor's veto of HB 2866 to impose a Hawaii estate tax on residents and also on the Hawaii assets of a non-resident or a non US citizen.		 On May 2, 2012, the Hawaii legislature passed HB2328 which conforms the Hawaii estate tax exemption to the federal estate tax exemption for decedents dying after January 25, 2012. $5,340,000 (indexed for inflation for deaths occurring after January 25, 2012)
Idaho None Tax is tied to federal state death tax credit. ID ST §§ 14-403; 14-402; 63-3004 (as amended Mar. 2002).
Illinois Modified Pick-up Only On January 13, 2011, Governor Quinn signed Public Act 096-1496 which increased Illinois' individual and corporate income tax rates. Included in the Act was the reinstatement of Illinois' estate tax as of January 1, 2011 with a $2 million exemption.

Senate Bill 397 passed both the Illinois House and Senate as part of the tax package for Sears and CME on December 13, 2011. It increased the exemption to $3.5 million for 2012 and $4 million for 2013 and beyond. Governor Quinn signed the legislation on December 16, 2011.

Illinois permits a separate state QTIP election, effective September 8, 2009. 35 ILCS 405/2(b-1).		 $4,000,000
Indiana None Pick-up tax is tied to federal state death tax credit. IN ST §§ 6-4.1-11-2; 6-4.1-1-4. On May 11, 2013, Governor Pence signed HB 1001 which repealed Indiana's inheritance tax retroactively to January 1, 2013. This replaced Indiana's prior law enacted in 2012 which phased out Indiana's inheritance tax over nine years beginning in 2013 and ending on December 31, 2021 and increased the inheritance tax exemption amounts retroactive to January 1, 2012.
Iowa Inheritance Tax Pick-up tax is tied to federal state death tax credit. IA ST § 451.2; 451.13. Effective July 1, 2010, Iowa specifically reenacted its pick-up estate tax for decedents dying after December 31, 2010. Iowa Senate File 2380, reenacting IA ST § 451.2.

Iowa has a separate inheritance tax on transfers to remote relatives and third parties.
Kansas None For decedents dying on or after January 1, 2007 and through December 31, 2009, Kansas had enacted a separate stand alone estate tax. KS ST § 79-15, 203
Kentucky Inheritance Tax Pick-up tax is tied to federal state death tax credit. KY ST § 140.130.

Kentucky has not decoupled but has a separate inheritance tax and recognizes by administrative pronouncement a separate state QTIP election.
Louisiana None Pick-up tax is tied to federal state death tax credit. LA R.S. §§ 47:2431; 47:2432; 47:2434.
Maine Pick-up Only For decedents dying after December 31, 2002, pick-up tax was frozen at pre-EGTRRA federal state death tax credit, and imposed on estates exceeding applicable exclusion amount in effect on December 31, 2000 (including scheduled increases under pre-EGTRRA law) (L.D. 1319; March 27, 2003).

On June 20, 2011, Maine's governor signed Public Law Chapter 380 into law, which will increase the Maine estate tax exemption to $2 million in 2013 and beyond. The rates were also changed, effective January 1, 2013, to 0% for Maine estates up to $2 million, 8% for Maine estates between $2 million and $5 million, 10 % between $ 5 million and $8 million and 12% for the excess over $8 million.

For estates of decedents dying after December 31, 2002, Sec. 2058 deduction is ignored in computing Maine tax and a separate state QTIP election is permitted. M.R.S. Title 36, Sec. 4062.

Maine also subjects real or tangible property located in Maine that is transferred to a trust, limited liability company or other pass-through entity to tax in a non resident's estate. M.R.S. Title 36, Sec. 4064.		 $2,000,000
Maryland Pick-up Tax

Inheritance Tax		 Tax is frozen at pre-EGTRRA federal state death tax credit. MD TAX GENERAL § 7-309.

Effective January 1, 2004, the threshold for Maryland tax is capped at $1 million. Senate Bill 508 signed by Governor Erhlich on May 26, 2004.

Effective January 1, 2005, federal deduction for state death taxes under Sec. 2058 is ignored in computing Maryland estate tax, thus eliminating a circular computation. Senate Bill 508 signed by Governor Erhlich on May 26, 2004. MD TAX GENERAL §§ 7-304; 7-309, amended May 2004.

On May 2, 2006, Governor Erhlich signed S.B. 2 which limits the amount of the federal credit used to calculate the Maryland estate tax to 16% of the amount by which the decedent's taxable estate exceeds $1,000,000, unless the Section 2011 federal state death tax credit is then in effect. It also permits a state QTIP election. MD TAX GENERAL § 7-309		 $1,000,000
Massachusetts Pick-up Only For decedents dying in 2002, pick-up tax is tied to federal state death tax credit. MA ST 65C §§ 2A.

For decedents dying on or after January 1, 2003, pick-up tax is frozen at federal state death tax credit in effect on December 31, 2000. MA ST 65C §§ 2A(a), as amended July 2002.

Tax imposed on estates exceeding applicable exclusion amount in effect on December 31, 2000 (including scheduled increases under pre-EGTRRA law), even if that amount is below EGTRRA applicable exclusion amount.

See, Taxpayer Advisory Bulletin (Dec. 2002), DOR Directive 03-02, Mass. Guide to Estate Taxes (2003) and TIR 02-18 published by Mass. Dept. of Rev.

Massachusetts Department of Revenue has issued directive, pursuant to which separate Massachusetts QTIP election can be made when applying state's new estate tax based upon pre-EGTRRA federal state death tax credit.		 $1,000,000
Michigan None Tax is tied to federal state death tax credit. MI ST §§ 205.232; 205.256
Minnesota Pick-up Only Tax frozen at federal state death tax credit in effect on December 31, 2000, clarifying statute passed May 2002.

Tax imposed on estates exceeding federal applicable exclusion amount in effect on December 31, 2000 (including scheduled increases under pre-EGTRRA law), even if that amount is below EGTRRA applicable exclusion amount. MN ST §§ 291.005; 291.03; instructions for MS Estate Tax Return; MN Revenue Notice 02-16.

Separate state QTIP election permitted.		 On March 21, 2014, the Minnesota Governor signed HF 1777 which retroactively repealed Minnesota's gift tax (which was enacted in 2013).

With respect to the estate tax, the new law increases the exemption to $1,200,000 for 2014 and thereafter in annual $200,000 increments until it reaches $2,000,000 in 2018. It also modifies the computation of the estate tax so that the first dollars are taxed at a 9% rate which increases to 16%.

The new law permits a separate state QTIP election.

The provision enacted in 2013 to impose an estate tax on non-residents who own an interest in a pass-through entity which in turn owned real or personal property in Minnesota has been amended to exclude certain publicly traded entities. It still applies to entities taxed as partnerships or S Corporations that own closely held businesses, farms, and cabins.		 $1,200,000

To read this Chart in full, please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.