The 2017 tax reform law raised the federal estate tax exemption considerably. Before that law was enacted, the exemption was $5.49 million per person for decedents who died in 2017. It's up to $12.06 million for people who die in 2022 ($24.12 million for a married couple). So, now, even fewer taxpayers have to worry about federal estate taxes when they pass away. However, if your goal is to leave as much as you can to your heirs, then you should also pay attention to the state you choose for retirement.
Twelve states and the District of Columbia levy their own estate taxes, sometimes called "death taxes," and some have much lower thresholds than the federal government. In addition, six states have inheritance taxes. Maryland, whose nickname is the Free State, has both.
The good news for retirees focused on estate planning: There are 33 states that have neither estate taxes nor inheritance taxes. Take a look to see if your state is on the list (and also check out some other tax facts for the listed states that might be of interest to you).