Here we have provided a “cheat sheet” to keep in mind for 2025 federal estate, gift, and GST exemptions, as well as exemptions and inheritance tax consequences in states that impose their own estate, gift, or inheritance tax.
Federal Estate, Gift, and GST Tax
Below is a summary of the current federal estate, gift, and generation-skipping transfer tax provisions for 2025. Note that, under current law, the increases in exemption amounts that began in 2018 are set to expire in 2026, at which point they will revert back to the pre-2018 numbers (i.e., expected to be ~$7M per person, indexed for inflation).
Gift Tax, Generation Skipping Transfer Tax, and Estate Tax Exemptions (Unified)
- Single: $13,990,000
- Married: $27,980,000
- Rate: 40%
- Gift and GST Tax Annual Exclusion Amount: $19,000 per donee
- Gift Tax Exclusions for medical and educational expenses paid directly to provider
State Estate, Inheritance, and Gift Tax
States vary in whether and how they tax transfers of property. A gift tax is imposed on property transferred while the donor is still alive. Estate taxes and inheritance taxes are imposed on the transfers of property after the decedent’s death. Below is a summary of the states that as of 2025 still impose estate, gift, or inheritance tax:
|
STATE |
GIFT TAX |
ESTATE TAX |
INHERITANCE TAX |
RATE |
EXEMPTION AMOUNT |
|
Connecticut |
Yes |
Yes |
No |
12% |
$13,990,000 [1] |
|
Hawaii |
No |
Yes |
No |
10-20% |
$5,490,000 |
|
Illinois |
No |
Yes |
No |
0.8-16% |
$4,000,000 |
|
Kentucky |
No |
No |
Yes, if inheritor is someone other than decedent’s spouse, parents, children, grandchildren, siblings and half-siblings |
4-16% (depending on inheritor’s relationship with decedent) |
$1,000 or $500 (depending on inheritor’s relationship with decedent) |
|
Maine |
No |
Yes |
No |
8-12% |
$7,000,000 |
|
Maryland |
No |
Yes |
Yes, if inheritor is someone other than decedent’s spouse, descendant, descendant’s spouse, ancestor, stepchild, stepparent, or sibling |
Estate tax: 0.8-16% Inheritance tax: 10% |
Estate: $5,000,000 [2] Inheritance: $1,000
|
|
Massachusetts |
No |
Yes |
No |
0.8-16% |
$2,000,000 |
|
Minnesota |
No |
Yes |
No |
13-16% |
$3,000,000 |
|
Nebraska |
No |
No |
Yes, if inheritor is someone other than decedent’s spouse |
1%, 11% or 15% (depending on inheritor’s relationship with decedent) |
$100,000, $40,000 or $25,000 (depending on inheritor’s relationship with decedent) |
|
New Jersey |
No |
No |
Yes, if inheritor is someone other than decedent’s spouse, ancestor, descendant, or stepchild |
11-16% |
$25,000 |
|
New York |
No [3] |
Yes |
No |
3.06-16% |
$7,160,000 [4] |
|
Oregon |
No |
Yes |
No |
10-16% |
$1,000,000 |
|
Pennsylvania |
No |
No |
Yes, if inheritor is someone other than decedent’s spouse, or parent (if decedent 21 or younger) |
4.5% for descendants, 12% for siblings, 15% for all others |
None |
|
Rhode Island |
No |
Yes |
No |
0.8-16% |
$1,802,431 |
|
Vermont |
No |
Yes |
No |
16% |
$5,000,000 |
|
Washington |
No |
Yes |
No |
10-20% |
$2,193,000 |
|
Washington, D.C. |
No |
Yes |
No |
11.2-16% |
$4,873,200 [5] |
[1] CT gift and estate tax is unified, so that lifetime gifts deplete exemption available at death. Exemption amount began matching the federal exemption starting in 2023 and will continue to do so.
[2] In January 2025, the Maryland governor proposed a new 2025 budget that would reduce the estate tax exemption by more than half to $2,000,000 per individual, but the inheritance tax would be repealed. Under the terms of the proposed budget, the changes to Maryland's estate tax exemption, if passed, would go into effect in July 2025.
[3] However, gifts made within three years of death are pulled back into the estate to calculate New York state estate tax.
[4] But subject to “NYS cliff” for taxable estates exceeding 105% of the exemption amount.
[5] From 2022 onward, the exemption amount will increase annually in accordance with the cost-of-living adjustment provided in the D.C. code.
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