33 States With No Inheritance or Estate Tax

For most people, the federal estate tax is nothing to worry about. In 2025, only individuals with estates above $13.99 million and married couples with estates of more than $27.98 million will be subject to the tax.

Some states have their own estate or inheritance taxes, however. If you want to avoid such taxes, know that there are many states that do not impose either type, which together are commonly referred to as “death taxes.”

To protect your wealth for future generations, you may want to consider living in one of these 33 states, but don’t forget to consider other important tax factors that apply to these places, too.

Alabama has lowered its sales tax on groceries in recent years from 4% to 3%.

Alaska provides an annual financial benefit to residents through the Permanent Fund Dividend. The reward was $1,702 in 2024.

Arizona has implemented a flat income tax rate of 2.5%.

In Arkansas, recent legislation reduced the top individual income tax rate from 4.4% to 3.9%, retroactive to Jan. 1, 2024.

While California is known for its high tax burden, certain areas offer lower property tax rates, at least relative to the state average. So, if you want to move to the Golden State, it might pay to look for these places.

In Colorado, residents can benefit from a state electric vehicle (EV) tax credit of up to $7,500.

Delaware has no state sales tax, and residents enjoy low property taxes.

Florida has no state income tax. Additionally, the Sunshine State has permanently exempted items such as diapers and baby clothing from sales tax.

In Georgia, Social Security benefits are exempt from income tax. As of 2024, the state has implemented a flat income tax rate of 5.49% that will fall to 4.99% in 2029.

Idaho has a flat income tax rate of 5.8%, and the state does not tax Social Security benefits. Additionally, some types of pension income can be deducted on your state return.

Indiana residents benefit from a flat state income tax rate of 3.05%.

Unfortunately, the news isn’t as good if you live in Kansas. Residents face a state sales tax of 6.5% and pay some of the highest combined state and local sales tax rates nationwide.

Louisiana homeowners pay an ultra-low 0.51% effective property tax rate. However, the state does have a sales tax rate of 4.45%.

Michigan residents pay a flat income tax rate of 4.25%. Unfortunately, they also pay some of the nation’s highest property taxes.

Mississippi offers a low flat income tax rate of 4.7% for earnings over $10,000, with plans for future reductions. However, at 7%, Mississippi has the highest-taxed groceries in the country.

Missouri’s top income tax rate falls to 4.7% in 2025, with plans to lower it further. Additionally, the state does not tax Social Security benefits.

Montana provides property tax rebates of up to $675 for eligible homeowners.

Nevada has an effective property tax rate of just 0.44% on owner-occupied housing, according to the Tax Foundation.

New Hampshire has been phasing out its tax on interest and dividends. The full repeal is effective Jan. 1, 2025. The state does not charge an income tax on W-2 wages.

New Mexico has progressive income taxes, with rates up to 5.9%. Although that’s not a super-low rate, it is better than in many other states.

North Carolina exempts groceries from state taxes, although local sales taxes may still apply. The state also has some of the nation’s lowest property taxes.

North Dakotans benefit from a top income tax rate of just 2.5%.

Ohio’s property taxes are relatively low, particularly compared to those of other nearby states.

Oklahoma has low property tax rates and a reasonable top income tax rate of 4.75%.

South Carolina has some of the country’s lowest property taxes, and South Dakota does not tax personal income.

South Carolina does not have taxes on groceries at the state level, but South Dakota does have such a tax.

Residents of both Texas and Tennessee pay no state income taxes.

Both states do have relatively high sales taxes. Thanks to a measure enacted in 2023, however, Texans now enjoy lower property taxes than in the past.

Utah is one of the few states that taxes Social Security benefits. The rate is a flat 4.55%, although some residents may qualify for a tax credit.

Virginia does not tax Social Security benefits but has a sales tax rate of 5.3% in most places, and a progressive income tax system with rates of up to 5.75%.

Wyoming has no state income tax, and West Virginia has some of the country’s lowest property taxes.

On the other hand, Wisconsin residents pay the nation’s eighth-highest property taxes.

These 33 states with no death taxes can be good places to live if you hope to pass on the maximum value of your estate to heirs. However, there are often trade-offs when living in these places.

If taxes are low in some areas, they’re likely higher in others — the government still needs to exact its pound of flesh. Additionally, living costs vary significantly by state.

Before relocating, talk to a financial advisor about the benefits and true savings of moving, and learn about other strategies to build wealth.