Estate Taxes and Probate Costs: Where Not To Die in the U.S. in 2026

A Forbes analysis published May 16, 2026 maps which U.S. states expose heirs to the heaviest estate or inheritance tax burdens and onerous probate fees, offering a practical guide for estate planning and wealth transfer decisions. The piece underscores how state rules can materially affect what beneficiaries ultimately receive.

According to Forbes, twelve states plus the District of Columbia impose an estate tax in 2026: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington, alongside D.C. Five states levy inheritance taxes on beneficiaries: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania; Iowa eliminated its inheritance tax for deaths on or after January 1, 2025. Maryland is notable for applying both an estate and an inheritance tax, creating potential “double taxation” for some bequests.

On the federal side, the estate tax exemption rises to roughly $15 million per individual in 2026, but many state-level exemptions are far lower, subjecting estates of modest size by federal standards to state taxation. Pennsylvania’s inheritance tax rates, for example, vary by class of beneficiary and can range from 4.5% for lineal heirs to 15% for unrelated beneficiaries; Maryland’s combined regime can expose the same dollars to both estate and inheritance levies. These numeric thresholds and rates are the critical drivers of estate planning cost.

While these state rules do not move markets directly, they influence regional real estate demand, relocation decisions by high-net-worth individuals, and the demand for tax-advantaged trust structures and legal services. States with low explicit death taxes can still generate significant probate-related fees that act like an implicit levy on estates, increasing the cost of transferring wealth in practice. The Forbes coverage emphasizes that “move to a tax-free state” is not a turnkey solution without careful planning.

Looking ahead, observers expect continued policy tinkering at the state level—adjustments to exemption thresholds, rate schedules, or ballot initiatives such as proposals to repeal inheritance levies in some jurisdictions. Financial advisers recommend that families review beneficiary designations, consider trusts that can bypass probate where appropriate, and consult tax counsel to model state and federal exposures before making relocation or estate design decisions. The evolving patchwork of rules will remain a key consideration for wealth transfer through 2026 and beyond.