Why this can matter even with a named beneficiary
An annuity beneficiary designation can control who receives the contract without answering every tax question. Income tax on annuity gain, estate tax on the decedent’s estate, and inheritance tax on a recipient are separate systems.
State exposure can depend on the decedent’s domicile, where property is located, the beneficiary’s relationship, the date of death, and state-specific definitions. This table is a screening aid for the jurisdictions covered by the published dataset, not a tax calculator or a list of every filing rule.
2026 state estate and inheritance tax table
Exemptions and top rates are screening figures, not a tax calculation. “Top rate” is the highest published marginal estate-tax rate or highest beneficiary-class inheritance-tax rate.
† Washington 2026 is a split year by date of death; the row shows the current regime — see the Washington section below.
Figures from the AdvisorWorld estate & inheritance tax dataset — reviewed by Sakineh Majd, J.D. — Maine Bar #004999 · independent legal review (2026-07-24).
Washington has two 2026 date-of-death regimes
Washington changed its estate tax mid-2026, so the exemption and top rate depend on the date of death. The pinned row carries both periods; the figures below come from that same pinned row, and the checksum gate fails if either period drifts.
- Deaths Jan 1 – Jun 30, 2026: $3,076,000 exemption, 35% top rate. The date of death selects the regime.
- Deaths on or after Jul 1, 2026: $3,000,000 exemption, 20% top rate. The date of death selects the regime.
How to use the table
- Identify the decedent’s domicile and date of death.
- Separate annuity income tax from estate and inheritance tax.
- For inheritance-tax states, identify the beneficiary class and its exemption.
- Open the carried primary source before relying on a threshold or rate.
- Ask a qualified adviser to apply the current law to the estate, contract, and beneficiary.
Frequently asked questions
Is an annuity death benefit included in an estate?
Annuity value can be relevant to the gross estate even when a named beneficiary receives the contract outside probate. Inclusion and state sourcing are fact-specific.
Does every state charge estate or inheritance tax?
No. This table covers the jurisdictions in the pinned 2026 dataset that impose one or both taxes, plus Iowa as a documented repeal row.
Is inheritance tax the same as income tax on annuity gain?
No. A beneficiary can have an income-tax issue under the annuity rules and a separate estate or inheritance-tax issue under federal or state law.