State-level estate taxes drive out taxable estates

Federal estate tax collections as a percentage of federal income tax collections on adjusted gross income above $1 million, Midwestern states

State-level estate tax collections data are not available for North Dakota or South Dakota. Illinois and Minnesota impose estate taxes, while in 2023, Iowa was still phasing down its inheritance tax, which that year was imposed on lineal heirs at a rate of 4% , though the migration impact of inheritance taxes is expected to be lower than that of estate taxes. Nebraska has a 1% inheritance tax on lineal heirs.
Chart: @illinoispolicySource: Based on 2022-2023 IRS data (latest available years).