Virginia does not have a state estate tax
Virginia abolished its estate tax in 2007, and it has not been reinstated. If you die and leave property to your heirs in Virginia, the state itself will not collect a tax on that transfer. This is different from the federal estate tax, which still exists and applies to estates larger than a certain threshold—but Virginia adds no additional state-level tax on top of it.
This matters because some states do charge their own estate tax or inheritance tax on top of federal taxes. Virginia is not one of them. If you live in Virginia or own property there, you do not face a state estate tax burden when you pass assets to your heirs.
Key Takeaways
- Virginia has no state estate tax; it was repealed in 2007 and has not returned.
- The federal estate tax still applies to very large estates, but Virginia does not add a state tax on top of it.
- An inheritance tax (a tax on what heirs receive) is different from an estate tax, and Virginia has neither.
- If you own property in multiple states, you may still owe estate or inheritance tax to those other states, even though Virginia does not charge one.
The difference between estate tax and inheritance tax
An estate tax is paid by the estate itself before money goes to heirs. An inheritance tax is paid by the people who receive the money. Virginia has neither. Some states have one, some have both, and some have neither—Virginia falls in the last group.
This distinction matters if you are comparing Virginia to neighboring states. Maryland, for example, has an inheritance tax. If a Maryland resident leaves money to an heir, that heir may owe Maryland tax on what they received. Virginia heirs do not face this burden from the state.
Federal estate tax still applies to large estates
Even though Virginia has no state estate tax, the federal government still collects estate tax on very large estates. The federal threshold changes year to year. In 2024, estates larger than $13.61 million face federal estate tax. That threshold is set to drop significantly in 2026 unless Congress acts.
If your estate is smaller than the federal threshold, you will not owe federal estate tax either. Most Virginians do not have estates large enough to trigger federal tax. But if you do, you will owe it to the federal government regardless of Virginia's lack of a state tax.
Your executor or estate attorney can help you understand whether your estate will cross the federal threshold. This is one of the few situations where professional guidance is worth the cost.
What happens if you own property in other states
If you own real estate or significant assets in another state that has an estate tax or inheritance tax, you may still owe tax to that state. Virginia's lack of a state tax does not protect you from taxes in Maryland, New Jersey, Pennsylvania, or other states that charge them.
For example, if you own a vacation home in Maryland and leave it to your child, Maryland may tax that transfer even if you live in Virginia. The state where the property is located, or sometimes the state where you were a resident, can claim the right to tax the transfer.
If you own property in multiple states, your executor will need to understand the tax rules in each one. This is another situation where an estate attorney familiar with multi-state property is worth consulting.
How Virginia's repeal affects your planning
Virginia's repeal of the estate tax in 2007 simplified planning for Virginia residents. You do not need to structure your estate to avoid a state tax that no longer exists. This removes one layer of complexity that residents in other states still face.
However, the federal estate tax still exists, and the threshold is scheduled to change. If your estate is large enough to be affected, you may still want to work with an attorney on strategies like trusts or gifting to reduce what your heirs owe to the federal government.
For most Virginians with modest estates, the absence of a state tax means less planning is needed. Your will or trust can be simpler and less expensive to set up.
When to talk to an estate attorney
You do not need an attorney just because Virginia has no estate tax. But you should consider one if your estate is worth more than $13.61 million, if you own property in multiple states, or if you have a complicated family situation or business interests.
An attorney can review your will or trust, make sure your assets are titled correctly, and help you understand what your heirs will actually owe in taxes. This is especially important if you have changed your residency or own property across state lines.
If your estate is smaller and straightforward, you may be able to handle a straightforward will on your own or with a basic online service. Virginia does not require a lawyer to write a valid will, though having one reviewed never hurts.
Frequently Asked Questions
If I move to Virginia from a state with an estate tax, do I owe that state's tax when I die?
Not if you have truly moved and established Virginia residency. Your state of residence at the time of death is what matters for most estate taxes. However, if you still own property in your old state, that state may tax the transfer of that specific property. An attorney can help you understand your situation.
Does Virginia tax inherited money or property?
No. Virginia has no inheritance tax. Your heirs do not owe Virginia state tax on what they receive from an estate, regardless of the size of the estate or the relationship between the heir and the deceased.
What if my estate is worth $20 million?
You will owe federal estate tax, but not Virginia state tax. The federal tax applies to estates over the threshold (currently $13.61 million in 2024). Work with an estate attorney to understand your federal tax liability and explore strategies to reduce it.
Can Virginia bring back the estate tax in the future?
Technically yes—any state can change its tax laws. But Virginia has not reinstated it since repealing it in 2007, and there is no current movement to do so. Tax law can change, so it is worth staying informed if you have a very large estate.