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Own Luxury Homes® National Estate Tax Real Estate Index™
Own Luxury Homes® National Estate Tax Real Estate Index™: Florida: $0 state estate tax; federal exclusion ~$13.99M/person (2025); 40% above exclusion. Oregon: $1M exclusion (lowest in U.S.); 10-16% rate. New York: $7.16M exclusion with cliff tax — estates just over threshold owe more than the excess. Massachusetts: $2M exclusion; IL: $4M. 12 states + DC still impose state estate or inheritance tax. FL Land Trust: title anonymity, probate avoidance, fractional transfer ease. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Own Luxury Homes® National Estate Tax Real Estate Index™
For high-net-worth individuals with significant real estate holdings, estate planning is inseparable from real estate strategy. The federal estate tax exclusion, the state-level estate tax landscape, and the legal structures available to minimize estate tax on real property are among the most consequential financial variables for UHNW real estate owners. Florida, which has no state estate tax and favorable trust law, is the most structurally favorable state for real estate estate planning in the United States.
01 — State Estate Tax by Relocation State
| State | State Estate Tax | State Exclusion Threshold | Rate | Implication |
|---|---|---|---|---|
| Florida | NONE | N/A | $0 | No state-level estate or inheritance tax; all FL real estate passes to heirs with no FL estate tax (federal may apply above $28M for married couples) |
| Texas | NONE | N/A | $0 | Same as FL; no state estate or inheritance tax |
| Tennessee | NONE | N/A | $0 | Same as FL; no state estate tax since 2016 |
| Nevada | NONE | N/A | $0 | No state estate tax; Nevada trust laws also favorable for real estate holding structures |
| Massachusetts | YES | $2,000,000 | 0-16% | MA estate above $2M: state estate tax applies; $2M condo in Boston has estate tax exposure vs. equivalent FL property |
| Oregon | YES | $1,000,000 | 10-16% | Lowest exclusion in the U.S.; $1M beach property in Lincoln City has Oregon estate tax exposure |
| Maryland | YES | $5,000,000 (2026) | 0-16% | One of the few states with BOTH estate tax and inheritance tax; married couples get $10M combined exclusion |
| New York | YES | $7,160,000 (2026, indexed) | 3.06-16% | NY cliff tax: estates just over the threshold may owe more in estate tax than the value over the threshold; significant planning issue |
| Connecticut | YES | $13,610,000 (matches federal) | 12% | CT estate tax mirrors federal; only triggers if above federal exclusion; limited practical difference for most estates |
| California | NONE | N/A | $0 | CA has no state estate tax despite high income taxes; but federal estate tax applies above federal threshold |
| Illinois | YES | $4,000,000 | 0.8-16% | IL estate tax: $4M exclusion; Chicago North Shore estate worth $3M has no IL estate tax; $8M estate has significant IL exposure |
| State estate tax data current as of 2026. Exclusions change periodically by state legislation. Federal estate tax: ~$13.99M/individual exclusion (2025); rate 40% above exclusion. Work with an estate planning attorney for any estate above $5M in total assets. FL is consistently one of the top-ranked states for estate planning efficiency. | ||||
Beyond the absence of state estate tax, Florida offers several structural advantages for real estate estate planning:
Florida Land Trust (Chapter 689.071): a unique Florida vehicle that holds title to real property anonymously; the beneficial interest is personal property (not real property) for transfer purposes, facilitating fractional transfer, avoiding probate, and providing a layer of privacy in public records.
No probate for trust-held property: real estate held in a revocable trust avoids FL probate entirely, which can be expensive and time-consuming for high-value FL properties.
Homestead creditor protection + step-up basis: FL homestead at death receives a stepped-up cost basis to fair market value (federal provision), eliminating capital gains tax on appreciation that occurred during the owner’s lifetime.
Florida Qualified Personal Residence Trust (QPRT): the QPRT structure allows an owner to transfer a FL home out of their estate at a discounted gift tax value while retaining the right to live in it for a term of years.
Brown, Ryan. “Own Luxury Homes® National Estate Tax Real Estate Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/national/research-indices/national-estate-tax-real-estate-indexMedia: ownluxuryhomes.com/connect · 407-900-7030
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)