State Inheritance Tax

State inheritance tax is a tax imposed by certain states on the estate or assets a person leaves to heirs or beneficiaries after passing away. The tax typically applies to the value of the inherited property exceeding specific exemption limits, which vary by state. It’s separate from federal estate tax and only relevant in states that have this law. The purpose is to generate revenue for state needs, and the rate can differ depending on the relationship between the deceased and the beneficiary. Not all states have inheritance taxes, so the applicability depends on the state where the deceased resided or the property is located.