Community Property States
Educational and illustrative state estate and inheritance tax regime chart. Does not constitute legal or tax advice.
Community property is a legal framework for determining how assets and debts are owned by spouses. Under community property laws, most property acquired by either spouse during the marriage is considered jointly owned, regardless of the asset's deed, title, or account registration being in only one spouse’s name.
| Community Property States (2025) |
| Arizona |
| California |
| Idaho |
| Louisiana |
| Nevada |
| New Mexico |
| Texas |
| Washington |
| Wisconsin |
* Alaska allows spouses to opt-in to community property treatment by legal agreement.
If your clients are moving between states or hold property in multiple states, understanding how each jurisdiction classifies assets is crucial. Property acquired in a community property state may retain its community property status.
Community property has implications for tax planning, estate planning and dissolution of marriage.
Who inherits what: In community property states, the surviving spouse is entitled to half of all community assets. This feature will modify how estate planning documents address disposition of assets and living trusts may specifically recognize assets as community property on an attached schedule of trust assets.Tax implications: Community property may qualify for a double stepped-up basis for the entire property value upon the first spouse’s death.
Divorce outcomes: These laws also affect how property is divided in a divorce.