--- title: "Where Not to Die in 2025: The States That Still Punish Legacy" description: Discover the states that still impose estate and inheritance taxes in 2025, and learn how to protect your legacy from costly implications. image: https://synergyannuity.com/hubfs/ChatGPT%20Image%20Jun%2016%2c%202025%2c%2002_52_58%20PM.png --- [Skip to content](https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy#main-content) ![Synergy Logo-#](https://synergyannuity.com/hs-fs/hubfs/Synergy%20Logo-%23.png?width=150&height=101&name=Synergy%20Logo-%23.png) - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) Open main navigation Close main navigation - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) - [Contact us](https://synergyannuity.com/contact) [Contact us](https://synergyannuity.com/contact) Jun 23, 2025, 11:00:00 AM # Where Not to Die in 2025: The States That Still Punish Legacy ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy) [Twitter icon](https://twitter.com/intent/tweet?url=https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy) [envelope icon](mailto:?body=https://synergyannuity.com/news-you-can-use/where-not-to-die-in-2025-the-states-that-still-punish-legacy) We’ve all heard “nothing is certain but death and taxes”—but for residents of certain states, the combination can cost dearly. While most states have dropped estate or inheritance taxes, **17 states plus DC** still impose them. And with the **federal estate tax exemption set to expire in 2026**, even moderate estates may be vulnerable. --- ### ⚠️ The 2025 Death Tax Map: Where Not to Die Here’s a breakdown of states with lingering inheritance or estate taxes—and why they matter: | **State** | **Estate Tax?** | **Inheritance Tax?** | **Top Rate** | **Exemption** | | --- | --- | --- | --- | --- | | CT | ✅ Yes | ❌ | 12 % | $13.85 M | | DC | ✅ Yes | ❌ | 16 % | $4.71 M | | HI | ✅ Yes | ❌ | 20 % | $5.49 M | | IL | ✅ Yes | ❌ | 16 % | $4 M | | IA | ❌ (phasing) | ✅ (until 2025) | 6–12 % | N/A | | KY | ❌ | ✅ | 4–16 % | Varies | | MA | ✅ Yes | ❌ | 16 % | $2 M | | MD | ✅ Yes | ✅ | 16 % | $5 M | | ME | ✅ Yes | ❌ | 12 % | $6.41 M | | MN | ✅ Yes | ❌ | 16 % | $3 M | | NE | ❌ | ✅ | 1–15 % | Varies | | NJ | ❌ | ✅ | 11–16 % | Varies | | NY | ✅ Yes | ❌ | 16 % | ~$6.94 M | | OR | ✅ Yes | ❌ | 16 % | $1 M | | PA | ❌ | ✅ | 4.5–15 % | Varies | | RI | ✅ Yes | ❌ | 16 % | ~$1.77 M | | VT | ✅ Yes | ❌ | 16 % | $5 M | | WA | ✅ Yes | ❌ | 20 % | $2.19 M |   > 🧠 **Advisor Tip:** > “Most clients are surprised to learn that where they live—or plan to retire—can force their heirs to pay massive taxes, often on assets they thought were safe.” --- ### 💣 Federal Time Bomb: 2026 Sunset - **2025 Exemption:** $13.99 M per individual (≈$27.98 M per couple) - **2026 Sunset:** Scheduled to cut exemption in half (~$7 M) - **Tax Rate:** Flat 40% on estates over the exemption **Example:** A $10 M estate in 2025 is safe—but in 2026, it could incur a 40% tax on $3 M = ~$1.2 M! --- ### 🛑 Who’s Really at Risk? - Business owners with succession plans - Families owning high-value real estate - IRA-heavy or blended-asset portfolios - Retirees in states like NY, MA, OR, WA, DC, MN, IL - Couples jointly holding assets over $5–6 M --- ### 🧰 What You Can Do Now 1. **Identify** clients in high-risk states 2. **Flag** their net worth near state/federal thresholds 3. **Discuss** legacy priorities (e.g., keeping a home or business in the family) 4. **Plan** to use targeted tools—and stay tuned for Part 2 --- ## ✅ Advisor Takeaways - 🏡 Ask clients where they plan to retire—or be buried - 📊 Review current portfolio mix and beneficiary arrangements - 💬 Frame the conversation: “Protecting the family, not the taxes” - 🤝 Use this post to start the dialogue, then let us support you with customized strategies --- ### 🔗 CTA **Subscribe for Part 2:** **“How to Pay the Death Tax Without Selling the Farm”**—coming soon! 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