Additional Coverage:
For most Americans, the federal estate tax isn’t an immediate concern. Starting in 2026, only individuals with estates exceeding $15 million-and married couples with estates above $30 million-will face this tax. However, a number of states impose their own estate or inheritance taxes, often called “death taxes,” which can impact your financial planning.
If you’re aiming to minimize these taxes for the benefit of future generations, consider the 33 states that do not levy either estate or inheritance taxes. Keep in mind, though, that other taxes-such as income, sales, or property taxes-vary widely among these states and should factor into your decision if you’re thinking about relocating.
Here’s a brief overview highlighting some tax features in these states:
1. Alabama and Alaska
Alabama has recently reduced its grocery sales tax from 4% to 2%. Meanwhile, Alaska offers residents an annual financial benefit via the Permanent Fund Dividend, which was $1,000 in 2025.
2. Arizona and Arkansas
Arizona applies a flat income tax rate of 2.5%. Arkansas recently lowered its top income tax rate from 4.4% to 3.9%, effective retroactively from January 2024.
3. California and Colorado
Though California is generally known for high taxes, some areas feature relatively lower property tax rates. Colorado offers a state electric vehicle tax credit of up to $750 to residents.
4. Delaware and Florida
Delaware imposes no state sales tax and has low property taxes. Florida stands out with no state income tax and permanent exemptions on items like diapers and baby clothing from sales tax.
5. Georgia and Idaho
Georgia exempts Social Security benefits from income tax and has a flat income tax rate starting at 5.19% in 2026, decreasing to 4.99% by 2029. Idaho also exempts Social Security benefits and taxes income at a flat 5.3%, with certain pension incomes deductible.
6. Indiana and Kansas
Indiana maintains a flat income tax rate of 3%. By contrast, Kansas has a high 6.5% state sales tax and some of the highest combined state and local sales tax rates in the nation.
7. Louisiana and Michigan
Louisiana homeowners enjoy an ultra-low effective property tax rate of 0.55%, though the state sales tax is 5%. Michigan residents pay a flat income tax of 4.25% but face some of the highest property taxes in the country.
8. Mississippi and Missouri
Mississippi’s flat income tax rate is 4.4% on earnings above $10,000, with plans for further reductions, but it carries the nation’s highest grocery tax at 7%. Missouri’s top income tax rate will drop to 4.7% in 2026, and it does not tax Social Security benefits.
9. Montana and Nevada
Montana offers property tax rebates of up to $400 for eligible homeowners. Nevada boasts an effective property tax rate of just 0.47% on owner-occupied homes.
10. New Hampshire and New Mexico
New Hampshire eliminated its tax on interest and dividends as of 2025 and does not tax wages. New Mexico has progressive income taxes up to 5.9%, which is moderate compared to many states.
11. North Carolina and North Dakota
North Carolina exempts groceries from state taxes and has some of the nation’s lowest property taxes. North Dakota’s top income tax rate stands at a low 2.5%.
12. Ohio and Oklahoma
Ohio’s property taxes are relatively modest compared to neighboring states. Oklahoma features low property taxes and a reasonable top income tax rate of 4.75%.
13. South Carolina and South Dakota
South Carolina has among the lowest property taxes nationwide, while South Dakota does not tax personal income. Note that South Dakota does apply a tax on groceries, unlike South Carolina.
14. Tennessee and Texas
Neither state imposes a state income tax. Both have relatively high sales taxes, but Texas recently implemented measures that have helped reduce property taxes.
15. Utah and Virginia
Utah taxes Social Security benefits at a flat 4.5%, though some residents may qualify for credits. Virginia does not tax Social Security but has a 5.3% sales tax and a progressive income tax topping out at 5.75%.
16. West Virginia, Wisconsin, and Wyoming
Wyoming has no state income tax, and West Virginia offers some of the lowest property taxes in the country. Conversely, Wisconsin residents face the eighth-highest property taxes nationwide.
Final Thoughts
Living in one of these 33 states without estate or inheritance taxes can be a strategic move if you want to preserve your wealth for heirs.
Yet, it’s important to weigh other tax obligations and the cost of living in each state before making a relocation decision. Consulting a financial advisor can help you understand the full picture and develop a comprehensive plan to grow your wealth while managing taxes and debt.
Money Tips for Everyone
Regardless of where you live or your financial situation, there are always ways to improve your money management:
- Boost your income: Consider side hustles or opportunities that fit your schedule to increase cash flow.
- Grow your savings: Start early, leverage compound interest, and work with professionals to plan for a secure retirement.
- Maximize benefits and savings: Take full advantage of discounts, senior benefits, and shop smart for essentials like car insurance to protect your wallet from unnecessary expenses.
By staying informed and proactive, you can make sound financial choices that help build and protect your wealth for the future.