LGBTQ+ Financial Planning by State: 2026 Comparison Guide

How your state shapes your financial plan as an LGBTQ+ household — six metrics that vary sharply across state lines. Covers domestic partner recognition, income and estate tax, paid family leave, Medicaid protections, and inheritance traps. Not legal or tax advice. Laws change; work with a specialist who knows your specific state.

Federal law covers the floor — Obergefell guarantees marriage portability, Bostock covers employment discrimination, and FMLA protects legally married same-sex spouses everywhere. But everything above that floor is state law: whether your domestic partnership crosses borders, whether your state charges estate tax on a $3M estate, whether Medicaid will protect your partner if you need long-term care, and whether you owe 15% inheritance tax at your partner's death. Where you live is one of the most consequential financial planning decisions for any LGBTQ+ household — especially domestic partners, who get none of the federal law defaults married couples receive.

We've published detailed state guides for 13 states. This page puts the key metrics side by side so you can compare at a glance and link through to the full analysis.

Full State Comparison Table (2026)

Six metrics that diverge most sharply for LGBTQ+ households. All values as of 2026. Click a state name for the full guide.

State	DP/CU Recognition	Top Income Tax	State Estate Tax	PFML Covers DPs	Medicaid CSRA for DPs	DP Inheritance / Transfer Trap
California	RDP = state marriage equiv.	13.3% top rate	None (federal $15M)	Yes — 8 weeks PFL	$162,660 (Medi-Cal extends to RDPs)	None for RDPs; Form 8958 community property split required
Colorado	Civil union — no joint state OR federal return	4.4% flat	None (federal $15M)	Yes — FAMLI covers CU + DP	~$0 for DPs	Civil union dissolution has no IRC §1041 rollover for asset transfers
Florida	None statewide	0%	None (federal $15M)	None	$0 for DPs (no Medicaid expansion)	Homestead + tenancy by entireties for married only; DPs unprotected
Georgia	None statewide	4.99% flat	None (federal $15M)	None	$0 for DPs	No inheritance tax, but no marital deduction for DPs at death
Illinois	Civil union — joint IL return, no federal	4.95% flat	$4M cliff — no portability	PLAWA (40 hrs) — no dedicated PFML	~$0 for civil union partners	Civil union asset transfers lack IRC §1041; $4M estate tax catches Chicago RE + retirement accounts
Massachusetts	Limited (8 municipalities only)	5% + 4% surtax >$1.1M	$2M — no portability	Yes — MA PFML, $1,230/week max	$0 for most DPs (no statewide registry)	No inheritance tax, but $2M estate exemption easily breached; credit shelter trust essential
Minnesota	No statewide registry — city-level only	9.85% top rate	$3M — no portability	Yes — MN Paid Leave (Jan 2026)	$0 for DPs	No inheritance tax, but SS income taxed at lower threshold for singles/DPs vs MFJ
New Jersey	3-tier: DP (limited) / civil union / marriage	10.75% top rate	None (repealed 2018)	Yes — NJ FLI, $1,119/week max	$162,660 for married; $0 for unregistered DPs	15–16% inheritance tax for unregistered DPs; 0% for registered DP/CU/married
New York	No statewide registry (NYC has one)	10.9% + NYC local up to 3.9%	$7.35M cliff — no portability	Yes — NY PFL, 12 weeks	$0 for DPs	No inheritance tax, but NY estate tax cliff: estates over ~$7.72M taxed from dollar one
Oregon	RDP — joint OR return, OR marital deduction	9.9% top rate	$1M — no portability (lowest in US)	Yes — Paid Leave Oregon, 12 weeks	$162,660 for RDPs	Not community property — no 100% basis step-up at death for RDPs (unlike CA/WA)
Pennsylvania	Limited (Philadelphia + 82 municipalities)	3.07% flat — full retirement income exemption	None	None (Family Care Act pending Senate)	~$8,000 for DPs	15% inheritance tax on domestic partner inheritances — $150K on a $1M estate
Texas	None statewide	0%	None (federal $15M)	None	$0 for DPs	Informal/common-law marriage available — useful for SS survivor date strategy
Washington	RDP = community property + PFML as spouses	0% income (but 7%/9.9% cap gains tax)	$3M — no portability	Yes — WA PFML covers RDPs as spouses	$162,660 for RDPs	$3M estate tax catches HNW households; WA cap gains tax on stock/fund gains above $262K

CSRA = Community Spouse Resource Allowance — the amount a Medicaid LTC applicant's spouse or partner can retain. "Married" = $162,660 federal floor (2026). DP/CU amounts depend on state Medicaid policy. Sources: state Medicaid agencies, IRS, SSA, state tax authorities.

Estate Tax: The Biggest Dollar Variable

The federal estate tax exemption is $15M per person (OBBBA, permanently in effect for 2026+), with unlimited portability between spouses. For most LGBTQ+ households, the federal estate tax is not the issue. State estate taxes are. Seven of the 13 states we cover impose state-level estate taxes — and none of them offer portability between spouses, let alone between domestic partners.

States with no state estate tax (2026)

California, Colorado, Florida, Georgia, New Jersey, Pennsylvania, Texas. Households in these states pay only federal estate tax — and at $15M per person (with the spousal unlimited marital deduction for legally married couples), most households have no federal estate tax exposure either. For domestic partners in these states, the lack of a federal marital deduction is the primary gap to plan around, not a state estate tax.

States with state estate tax — thresholds and cliff effects

Oregon: $1M exemption — the lowest in the country. A Portland home plus two retirement accounts easily breaches this. Credit shelter trust essential for couples above $1M combined.
Massachusetts: $2M exemption, no portability. One of the lowest exemptions in the US, catching many households with a home + retirement accounts.
Minnesota: $3M exemption, no portability. Credit shelter trust essential for couples with combined assets above $3M.
Washington: $3M exemption (ESB 6347: $3M from July 2026), no portability. Two-tier cap gains tax adds a second layer for investment-heavy households.
Illinois: $4M exemption with a cliff effect similar to New York's. No portability.
New York: $7.35M exemption, but with a hard cliff — an estate slightly over the threshold loses the entire exemption and is taxed from dollar one. No portability. The most punishing structure of any state estate tax.

For domestic partners, state estate taxes hit harder than for married couples because DPs cannot use the state marital deduction (where states have one). A married NY couple with $14.7M combined can pass the full estate to the surviving spouse tax-free using the marital deduction and portability — a NY domestic partner cannot. This gap makes credit shelter trusts and other planning tools more urgent for DP households in estate-tax states.

Domestic Partner Recognition Tiers

Not all domestic partnerships are created equal. The recognition level determines which financial rights follow automatically versus which require proactive planning to establish.

Tier 1: Full state-marriage equivalent (California, Washington, Oregon)

California RDPs and Washington RDPs receive state-law rights equivalent to marriage: community property treatment, state marital deduction, state Medicaid CSRA protections, and (in CA and WA) paid family leave as spouses. Oregon RDPs receive a joint state return and Oregon marital deduction. These are the strongest protections available to unmarried LGBTQ+ couples.

The gap that remains even at Tier 1: no federal marital deduction (IRC §2056/§2523), no federal FMLA rights, no Social Security spousal or survivor benefits, no joint federal income tax return, and no inherited IRA spousal rollover. Federal gaps are the same regardless of how strong the state recognition is.

Tier 2: Civil union or limited state recognition (Illinois, New Jersey, Colorado)

Illinois civil unions give full state-level rights — joint IL return, IL marital deduction, tenancy by the entireties — but no federal recognition. New Jersey has three tiers: unregistered DPs (minimal rights), registered DPs (limited), and civil union partners (full state rights). Colorado civil unions uniquely cannot file joint state OR federal returns — an unusual gap even for state recognition.

Tier 3: Limited or no statewide recognition (New York, Massachusetts, Minnesota, Pennsylvania, Florida, Georgia, Texas)

These states either have no statewide DP registry (NY, MN, GA, TX, FL) or only limited municipal registries (MA, PA). In these states, unmarried LGBTQ+ couples have no automatic state-law protections beyond what they've established through documents — JTWROS titling, revocable trusts, durable POAs, and healthcare proxies. The document stack is more important here precisely because the legal defaults won't protect you. See our powers of attorney guide and estate planning for chosen families guide.

Income Tax and Roth Conversion Strategy

State income tax matters most for Roth conversion planning. Domestic partners are single filers federally (higher brackets, lower IRMAA threshold at $109K). Adding a high state income tax to the federal rate raises the all-in conversion cost substantially.

Low-tax states for Roth conversions: Texas (0%), Florida (0%), Washington (0% income — but 7%/9.9% cap gains on securities), Pennsylvania (3.07% flat with full retirement income exemption), Colorado (4.4% flat), Georgia (4.99% flat), Illinois (4.95% flat).

High-tax states where Roth conversion math is harder: New York (up to 10.9% + NYC local), New Jersey (up to 10.75%), Minnesota (up to 9.85%), Oregon (up to 9.9%), California (up to 13.3%).

The Roth conversion urgency for domestic-partner households is real regardless of state — the 10-year inherited IRA forced-distribution rule means your partner pays ordinary income tax on every dollar over 10 years with no spousal rollover option. In high-state-tax jurisdictions, the question becomes not whether to convert but how to time it (e.g., before moving to a higher-tax state, or during a low-income year). Use our Roth conversion planner to model your all-in federal + state rate before deciding conversion amount.

Paid Family Leave Coverage for Domestic Partners

Federal FMLA covers legally married same-sex spouses for spousal caregiving — but not domestic partners. State paid family leave programs can fill this gap, but only in states that have explicitly extended DP coverage.

States in our guide with PFML coverage extending to domestic partners: California (8-week PFL for RDP caregiving), Washington (WA PFML treats RDPs as spouses), Oregon (Paid Leave Oregon, 12 weeks), Massachusetts (MA PFML, $1,230/week max 2026), New York (NY PFL, 12 weeks), New Jersey (NJ FLI, $1,119/week max), Minnesota (MN Paid Leave, launched January 2026), Colorado (FAMLI, $1,381/week max).

States with no state PFML: Florida, Georgia, Texas, Pennsylvania (Family Care Act pending Senate).

For domestic partners caring for a sick partner, the difference is stark: a California RDP can take 8 weeks of paid leave; a Texas domestic partner takes zero paid leave and no FMLA leave. Income replacement planning and disability insurance sizing need to account for this gap in states without PFML. See our disability insurance guide for DP-specific income replacement modeling.

Medicaid CSRA: The Long-Term Care Wealth Gap

The Community Spouse Resource Allowance (CSRA) protects a Medicaid LTC applicant's spouse from having to spend down assets to poverty level. The 2026 federal floor is $162,660. Legally married spouses in all states receive this protection. Domestic partners receive it only in states that have explicitly extended CSRA protections.

States extending CSRA to DPs or RDPs: California ($162,660 for Medi-Cal RDPs), Washington ($162,660 for RDPs), Oregon ($162,660 for OR RDPs). All other states in our guide: $0 to ~$8,000 individual asset limit for domestic partners.

The financial consequence: if your domestic partner needs nursing home care in Texas, Florida, Georgia, New York, Minnesota, Massachusetts, or Illinois, you as the community partner are not protected by Medicaid. You may be required to spend down your own assets before your partner qualifies. This gap — up to $162,660 per LTC event — is a primary reason domestic-partner households need larger LTC reserves than married couples. See our Medicare and LTC planning guide for LGBTQ+ households.

Inheritance Tax Traps

Most states have eliminated inheritance taxes. Two in our guide impose them selectively on domestic partners.

Pennsylvania: The most consequential inheritance tax on DPs in the US. Pennsylvania charges 15% inheritance tax on all assets inherited by an unmarried domestic partner — not just the estate above a threshold, but every dollar. On a $1M inheritance, that is $150,000 in state tax a legally married surviving spouse would owe zero. Life insurance with the partner as named beneficiary is the primary pre-funding tool — named-beneficiary proceeds bypass probate and are generally exempt from the PA inheritance tax. See the Pennsylvania LGBTQ+ financial planning guide for the full analysis.

New Jersey: NJ's inheritance tax structure depends on legal status. Registered domestic partners and civil union partners are Class A beneficiaries — fully exempt, the same as spouses. Unregistered domestic partners are Class D beneficiaries, taxed at 15–16% on inheritances over $500. The NJ DP registration fee is $28. The ROI on that registration is potentially thousands in avoided inheritance tax. See the New Jersey LGBTQ+ financial planning guide.

Best States by Planning Priority

There is no single best state for every LGBTQ+ household — the right state depends on your legal status, asset level, employment situation, and health planning timeline. Here's where each state leads by planning category:

Priority	Best options	Notes
No state estate tax	TX, FL, GA, CO, NJ, PA, CA	TX + FL + GA also have no state income tax or favorable retirement exemptions
Strongest DP recognition	CA, WA, OR	RDP status extends community property, PFML, and Medicaid CSRA protection
Lowest income tax for Roth conversions	TX, FL (0%); PA (3.07%, retirement fully exempt); CO (4.4%); GA (4.99%)	WA has 0% income tax but 7%+ on cap gains — mixed picture for investment-heavy households
LTC Medicaid CSRA protection for DPs	CA, WA, OR	Only states extending $162,660 CSRA to unmarried registered partners
Best pre-SS-claiming early retirement	TX, FL, WA (no income tax); PA (full retirement income exemption)	Lower ACA premium cliffs where marketplace income management matters
PFML for DP caregiving	CA, WA, OR, MA, NY, NJ, MN, CO	TX, FL, GA, PA have zero state PFML for DPs currently

Choosing a state is not just optimizing one variable. A retired domestic-partner couple moving from New York to Florida eliminates state income tax and estate tax — but also loses the Medicaid CSRA protection California and Washington provide, and moves to a state with no Medicaid expansion. Run the numbers across all six variables before deciding. An advisor who has modeled LGBTQ+ interstate relocations can build the full picture.

Before You Relocate: Financial Checklist

If you're considering a move between any of these states, complete these steps before you change your address:

Determine whether your domestic partnership or civil union carries over. Most don't automatically. California RDP status is California-only. Illinois civil union status doesn't give you rights in Georgia. In states with no DP recognition, you may need to re-document your relationship entirely.
Update your estate documents before or immediately after moving. Wills, POAs, and healthcare proxies drafted in one state may not be fully recognized in another, especially if they reference state-specific legal provisions. The healthcare proxy is the most time-critical document.
Check the Medicaid CSRA cliff. If you are moving from CA, WA, or OR to a state with no CSRA protection for DPs, quantify the gap and increase LTC reserves accordingly.
Model the Roth conversion window. If you're moving from a high-income-tax state to a low-tax state (e.g., NY to TX), the years between establishing residency and starting Required Minimum Distributions are a conversion window. Don't waste it.
Check for community property transition issues. CA, WA (for RDPs), TX, and a few others are community property states. Moving from a community property state to a non-community property state (or vice versa) triggers Form 8958 filing questions and can affect the basis step-up at death. See our interstate relocation financial planning guide for the full treatment.
Pre-fund the PA inheritance tax if moving to Pennsylvania. If your partner is likely to predecease you and you hold assets jointly, Pennsylvania's 15% inheritance tax on DP inheritances should be pre-funded with life insurance before you establish PA residency.
Register before you move if moving to New Jersey. NJ DP registration costs $28 and converts you from a 15–16% inheritance-tax payer to a zero-tax Class A beneficiary. Do it before the first death, not after.

What a Specialist Can Model for You

Relocation analysis across these six variables — especially when you add in Social Security claiming optimization, portfolio Roth conversion sequencing, LTC self-insurance sizing, and estate planning tool selection — is exactly the kind of multi-variable modeling where a fee-only advisor who has worked with many LGBTQ+ households earns their fee. General financial planners often miss the DP-specific Medicaid cliff, the PFML gap, and the inheritance tax traps because these issues rarely come up with married couples. A specialist who has run these numbers before will build a more complete picture faster.

Our state-by-state guides go deeper on each of these topics. Start with the state you're in and the state you're considering:

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OBBBA estate and gift exemption: IRS estate and gift tax FAQs — $15M permanent exemption effective 2026.
State Medicaid CSRA 2026: Medicaid.gov eligibility — federal floor $162,660; state extensions vary.
NY PFL domestic partner coverage: NY Paid Family Leave — covered family members.
PA inheritance tax rates: PA Department of Revenue inheritance tax — 15% rate for non-spousal, non-lineal beneficiaries.
California RDP rights: CA Secretary of State RDP registry.
WA PFML RDP coverage: Washington Paid Family and Medical Leave — family members.

Values verified July 2026. State laws change; confirm current rules with a licensed professional in your jurisdiction before acting.