Technical article
State Death Taxes on a Collection: Twelve States, the District of Columbia and Five Inheritance-tax States
Her collection counts in the estate, and the estate is over the line.
Imagine a widow in Oregon whose estate is US$3 million. A third of it is a coin collection and some paintings. The rest is a house and savings. This is an example. She owes nothing to the federal government, because the 2026 federal exclusion is US$15 million. Does the state see it the same way?
It does not. Oregon's exemption is US$1 million, the lowest in the list below. Her collection counts in the estate, and the estate is over the line.
The collection counts
The IRS instructions for Form 706, the federal estate tax return, tell an executor to list works of art and items with collectible value on Schedule F. Examples include jewelry, silverware, books, statues, rugs, and coin and stamp collections. Items or collections over US$3,000 need an appraisal by an expert under oath. Digital assets, such as cryptocurrency, are listed there too. The federal tax is due nine months after death, and an extension of time to pay is available.
Twelve states and the District of Columbia
Key Wealth Institute, a bank research arm (tier B), counted twelve states plus the District of Columbia with an estate tax in 2026. The figures are as of 1 October 2025.
| Place | 2026 exemption | Rate range |
|---|---|---|
| Connecticut | US$15 million | 12% flat |
| Maine | US$7.16 million | 8% to 12% |
| New York | US$7.35 million | 3.06% to 16% |
| Hawaii | US$5.49 million | 10% to 20% |
| Maryland | US$5 million | 0.8% to 16% |
| Vermont | US$5 million | 16% flat |
| District of Columbia | US$4,988,000 | 11.2% to 16% |
| Illinois | US$4 million | 0.8% to 16% |
| Minnesota | US$3 million | 13% to 16% |
| Washington | US$3 million | 10% to 35% |
| Massachusetts | US$2 million | 0.8% to 16% |
| Rhode Island | US$1,838,056 | 0.8% to 16% |
| Oregon | US$1 million | 10% to 16% |
New York's tax department confirms US$7,350,000 for deaths in 2026. Washington's revenue department gives US$3,076,000 for deaths through 30 June and US$3,000,000 from 1 July, with no yearly adjustment, while Key lists only the lower figure. Washington also taxes non-residents who own property in the state.
Five states tax the heir, not the estate
Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania charge an inheritance tax. Iowa repealed its tax from 1 January 2025. The tax falls on the heir, and the rate depends on how the heir is related to the person who died. Maryland is on both lists.
| State | What Key shows |
|---|---|
| Pennsylvania | 0% to a spouse, 4.5% to children and lineal heirs, 12% to siblings, 15% to others |
| Nebraska | 1% over US$100,000 for close relatives, 11% over US$40,000 for remote relatives, 15% over US$25,000 for unrelated heirs |
| Kentucky | 4% to 16% by class of heir |
| New Jersey | 0% to 16% |
| Maryland | 10% on heirs who are not exempt |
Pennsylvania's revenue department confirms the 0, 4.5, 12 and 15% rates, and says collections passing to non-exempt heirs are taxed. Transfers between spouses on jointly owned property are exempt.
Voicing the doubt
You might say, "My estate is far below US$15 million, so none of this reaches me." That holds for the federal tax. The state lists show where it can stop holding, at US$1 million in Oregon and US$2 million in Massachusetts. In an inheritance-tax state, the bill depends on who inherits, not on the size of the estate alone.
Who this touches
Children in different states may face different rules. A child in Pennsylvania who inherits a coin collection pays at one rate, and a niece pays at another. For income tax, an heir's cost basis is generally the value on the date of death.
Doors you could open
You could list each state where you own a home, store a collection, or have an heir. You could ask which state's rules apply to the heir and which to the estate. You could compare the total value of the collection to the lowest state exemption on your list.
Does the US Tax My Estate if I Am a Citizen Living in Another Country? covers the federal side for a citizen who lives abroad.
If a state tax surprised your family, what did the return ask for? Share it here, someone filling out their first one may benefit.
Figures are estimates for planning, based on public data. Date read: October 2026.
Sources
- Key Wealth Institute 2026 state summary of inheritance, estate, gift and transfer taxes (B)
- IRS Instructions for Form 706 (A)
- IRS Publication 551 (A)
- New York Department of Taxation and Finance (A)
- Washington Department of Revenue (A)
- Pennsylvania Department of Revenue (A)
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