Inheritance laws can be confusing, especially when it comes to how much money stays in your pocket. While some states still tax inherited assets, others have eliminated the inheritance tax entirely. Here are eight states where heirs keep more of what’s passed down.
Florida
Florida has no state inheritance or estate tax. It’s one of the most tax-friendly states for retirees and families passing down wealth. Combined with no state income tax, Florida remains a popular destination for those protecting their assets for future generations.
💸 Take Back Control of Your Finances in 2025 💸
Get Instant Access to our free mini course
5 DAYS TO A BETTER BUDGET
Texas
Texas doesn’t impose inheritance or estate taxes, making it one of the easiest states for beneficiaries. The only taxes that may apply come from federal estate limits, which affect very few households. Texans often choose to keep property transfers simple and straightforward.
Nevada
Nevada is another state that doesn’t collect inheritance or estate taxes. Its overall low-tax environment attracts retirees and high-net-worth individuals. Beneficiaries receive their inheritance tax-free, helping families preserve more of their wealth.
Arizona
Arizona repealed its inheritance and estate taxes years ago. That means residents can transfer money or property to heirs without worrying about state-level taxes. It’s also one of the most affordable states to retire, thanks to lower overall costs of living.
Alaska
Alaska has never charged an inheritance or estate tax. Combined with no state income tax, it allows families to pass down assets without additional costs. For many, Alaska’s financial policies provide peace of mind for long-term estate planning.
New Hampshire
While New Hampshire has some of the highest property taxes in the country, it has no inheritance or estate tax. That makes it appealing for residents who plan to pass down savings, businesses, or property without the state taking a share.
South Dakota
South Dakota has eliminated both inheritance and estate taxes. It’s known for strong asset protection laws and business-friendly policies, which make it a smart choice for trusts and estate planning. Beneficiaries in South Dakota inherit assets with no state tax burden.
Wyoming
Wyoming stands out as one of the most tax-efficient states in the U.S. It has no inheritance tax, no estate tax, and no state income tax. Its favorable tax structure makes it an ideal place for families looking to preserve wealth over generations.
Keep More of What’s Yours
While federal estate taxes can still apply to large estates, these states make it easier for families to transfer wealth without losing a portion to state taxes. If you’re thinking long-term, moving to or inheriting from one of these states can make a significant difference in what stays with your family.
Like our content? Follow us for more!
The article 8 States where inheritance taxes don’t touch your wallet first appeared on Cents + Purpose.