This paper discusses an impedance-based state-of-health (SOH) estimation for lithium-ion battery management systems. Features obtained from the Nyquist plot of the electrochemical impedance spectroscopy (EIS) are utilized to estimate the SOH. Two commercial lithium-ion batteries were aged (cycled) in the laboratory to collect aging and impedance data. An algorithm for SOH estimation is presented and evaluated. The performance evaluation results show that the SOH features extracted from the Nyquist plot can be utilized for SOH estimation. Estimated SOH values can be then utilized in various battery management systems (BMS) functions such as for calibrating the available capacity, adjusting charging/discharging strategies, and protection.