AZ risk area
Tax exposure in Arizona
State estate or inheritance tax rules and how they interact with federal thresholds.
Arizona does not impose a state estate or inheritance tax for deaths after 2004.
Does the state impose an estate or inheritance tax?Who is exempt or receives preferential treatment?How does federal tax interact with state rules?
At a glance
Key takeaways
- Estate tax provisions were repealed; no inheritance or gift tax is imposed.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Questions to consider
Questions this risk area helps you evaluate in Arizona
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Arizona does not impose a state estate or inheritance tax for deaths after 2004.
- Estate tax provisions were repealed; no inheritance or gift tax is imposed.
- Federal estate tax may apply based on estate size.
- With no state death tax, tax exposure is primarily federal when the estate exceeds the federal exemption.
Sources
- https://azdor.gov/sites/default/files/2023-03/PUBLICATION_2006_900.pdf
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Risk sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Arizona.