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The idea comes from one of Alex's posts. He was asked to recommend horror films to a neophyte. Here are the ones I would recommend as both good and influential, or often referenced. The list includes horror/comedies. I took IMDB's user ratings as a starting point, then exercised some editorial control, and this is what I came up with (in chronological order):

THE CABINET OF DR. CALIGARI (1920) *
NOSFERATU (1922) *
FRANKENSTEIN (1931)
DRACULA (1931)
DR. JEKYLL & MR. HYDE (1931)
FREAKS (1932)
THE INVISIBLE MAN (1933)
KING KONG (1933)
THE BRIDE OF FRANKENSTEIN (1935)
THE INNOCENTS (1961)
KWAIDAN (1964) *
ONIBABA (1964) *
NIGHT OF THE LIVING DEAD (1968)
ROSEMARY'S BABY (1968)
THE EXORCIST (1973)
DAWN OF THE DEAD (1978)
HALLOWEEN (1978)
THE SHINING (1980)
THE THING (1982)
EVIL DEAD II (1987)
SHAUN OF THE DEAD (2004)
LET THE RIGHT ONE IN (2008) *
I SAW THE DEVIL (2010) *
WHAT WE DO IN THE SHADOWS (2014)
GET OUT (2017)

The asterisks are for silent or subtitled films. If the person just refuses to watch those, you can substitute

DEAD OF NIGHT (1945)
DEAD ALIVE (BRAIN DEAD) 1992
THE OTHERS (2001)
SAW (2004)
ZOMBIELAND (2009)
TUCKER AND DALE VS. EVIL (2010)

Had to leave out some great titles to narrow it down to 25. You can either make your own list or just modify mine by suggesting to swap out "x" for "y".

JANNIE TOTSIENS*
THE STICK
DUST DEVIL
THE HAUNTING (1963)
NIGHT OF THE LIVING DEAD
FRIDAY THE 13TH (1980)
HOUSE OF THE LONG SHADOWS
PSYCHO
THE BELIEVERS (1987)
EYES WITHOUT A FACE / LES YIEUX SANS VISAGE*
THE SHADOWED MIND
THE MEDUSA TOUCH
THE HITCHER (1986)
RACE WITH THE DEVIL
HALLOWEEN (1978)
THE BIRDS
PHANTASM
THE WICKER MAN (1973)
THE OMEN
HORROR EXPRESS
THE TEXAS CHAINSAW MASSACRE
THE EXORCIST
SCREAM AND SCREAM AGAIN
EVENT HORIZON
WITCHFINDER GENERAL / THE CONQUEROR WORM

Some of these - like The Medusa Touch, The Believers and The Hitcher - are not really classed as horror films but those three disturbed me to the point where I was actually shaking. I have only ever seen The Hitcher once.

Dang. This is gonna be hard.

1. NOSFERATU (1922)
2. DRACULA (1931)
3. FRANKENSTEIN (1931)
4. the RAVEN (1934)
5. KING KONG (1933)
6. the BRIDE OF FRANKENSTEIN (1935)
7. MAD LOVE (1935)
8. PSYCHO (1960)
9. the HAUNTING (1963)
10. BLACK SUNDAY (1960)
11. NIGHT OF THE LIVING DEAD (1968)
12. ROSEMARY'S BABY (1968)
13. the EXORCIST (1973)
14. the TEXAS CHAINSAW MASSACRE (1974)
15. LAST HOUSE ON THE LEFT (1972)
16. TOURIST TRAP (1979)
17. the SHINING (1981)
18. DAWN OF THE DEAD (1978)
19. ZOMBIE (1979)
20. DEEP RED (1975)
21. the THING (1982)
22. the EVIL DEAD (1981)
23. HALLOWEEN (1978)
24. the DEVIL'S REJECTS (2005)
25. I SAW THE DEVIL (2010)

That was hard.

CARNIVAL OF SOULS (1962) and ALIEN (1979) are 2 that I'd include are not mentioned by anybody. 
CASTLE OF BLOOD (1964) and NOT OF THIS EARTH (1957) are two favorites I'd include.  CITY OF THE LIVING DEAD (1980)  can substitute for several from others lists.

I haven't seen these:
ONIBABA (1964)
SHAUN OF THE DEAD (2004)
LET THE RIGHT ONE IN (2008) *
I SAW THE DEVIL (2010) *
WHAT WE DO IN THE SHADOWS (2014)
GET OUT (2017)

Horror comedies to me are Comedy.   Otherwise, nice selections from all. 

Oh sh!t! I forgot KILL, BABY, KILL (1966)!

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http://youtu.be/jP53GrJde54 (http://youtu.be/jP53GrJde54)

But what would you take off your list to add that one?

^ Man, your making this tough!

Ok... LAST HOUSE ON THE LEFT.

I removed SAW and replaced it with EVENT HORIZON.

1 The Shining (1980)
2 The Exorcist directors cut (1973)
3 Nosferatu (1922)
4 Frankenstein (1931)
5 Halloween (1978)
6 Get Out (2017)
7 Saw (2004)
8 Jaws (1975)
9 Rosemary's Baby (1968)
10 Night of the Living Dead (1968)
11 The Omen (1976)
12 Eyes Without a Face (1960)
13 Phantasm (1979)
14 Friday the 13 (1980)
15 A Nightmare on Elm Street (1984)
16 Dracula (1931)
17 Psycho (1960)
18 The Birds (1963)
19 Alien (1979)
20 The Evil Dead (1981)
21 Let the Right One In (2008)
22 King Kong (1933)
23 The Conjuring (2013)
24 The Thing (1983)
25 The Silence of the Lambs (1991)

1. Nosferatu (1922)
2. Dracula (1931)
3. Frankenstein (1931)
4. King Kong (1933)
5. Godzilla (1954)
7. The Curse of Frankenstein (1957)
8. Horror of Dracula (1958)
9. Psycho (1960)
10. The Birds (1963)
11. Night of the Living Dead (1968)
12. The Exorcist (1973)
13. The Texas Chain Saw Massacre (1974)
14. Jaws (1975)
15. Halloween (1978)
16. Alien (1979)
17. The Shining (1980)
18. The Evil Dead (1981)
19. A Nightmare on Elm Street (1984)
20. Re-Animator (1985)
21. The Silence of the Lambs (1991)
22. Se7en (1995) 
23. The Blair Witch Project (1999)
24. The Babadook (2014)
25. The Witch (2015)

I don't think I would call my list Essential but really "The Horror Starter Pack".
 

In no particular order:
1. THE EXORCIST (1973)
2. HALLOWEEN (1978)
3. SUSPIRIA (1977)
4. FRIGHTMARE (1974)
5. NIGHTMARE ON ELM STREET 3: DREAM WARRIORS (1987)
6. FRIDAY THE 13TH (1980)
7. FRIDAY THE 13TH PART VI: JASON LIVES (1986)
8. ZOMBIE (1979)
9. EVIL DEAD II: DEAD BY DAWN (1987)
10. INVASION OF THE BODY SNATCHERS (1978)
11. NIGHT OF THE LIVING DEAD (1968)
12. DAWN OF THE DEAD (1978)
13. DAWN OF THE DEAD (2004)
14. SHAWN OF THE DEAD (2004)
15. BUTCHER, BAKER, NIGHTMARE MAKER/NIGHT WARNING (1981)
16. PSYCHO (1960)
17. THE TEXAS CHAINSAW MASSACRE (1974)
18. ALIEN (1979)
19. DON'T LOOK NOW (1973)
20. JAWS (1975)
21. SILENCE OF THE LAMBS (1991)
22. THE THING (1982)
23. SE7EN (1995)
24. AN AMERICAN WEREWOLF IN LONDON (1981)
25. WOLFEN (1981)

I’m breaking it down by decade, to make things easier:

30’s & Earlier

Dracula
Frankenstein
The Cabinet of Dr Caligari
Svengali
White Zombi
King Kong
The Invisible Man

40’s

The Wolfman

50’s

Horror of Dracula
Invasion of the Body Snatchers
The Tingler
Godzilla
The War of the Worlds
The Blob
It! The Terror From Beyond Space
Creature From the Black Lagoon
The Incredible Shrinking Man

60’s

Psycho
Night of the Living Dead
The Pit and the Pendulum
I Saw What You Did

70’s & Later

Jaws
Halloween
Alien
The Night Stalker

I want to add explanations to all of these, but it’s too late right now. Maybe Monday...

 1. The Silence of the Lambs (1991)
 2. Alien (1979)
 3. Psycho (1960)
 4. The Shining (1980)
 5. The Thing (1982)
 6. Jaws (1975)
 7. The Exorcist (1973)
 8. Rosemary's Baby (1968)
 9. The Phantom Carriage (1921)
 10. Freaks (1932)
 11. Dawn of the Dead (1978)
 12. Night of the Living Dead (1968)
 13. The Innocents (1961)
 14. Get Out (2017)
 15. Evil Dead II (1987)
 16. Halloween (1978)
 17. Lost Highway (1997)
 18. Duel (1971)
 19. Santa Sangre (1989)
 20. An American Werewolf in London (1981)
 21. The Wicker Man (1973)
 22. The Devil's Backbone (2001)
 23. Jacob's Ladder (1990)
 24. A Nightmare on Elm Street (1984)
 25. Carrie (1976)

I decided I had to include PSYCHO (1960). I have always resisted categorizing PSYCHO as "horror" instead of "suspense," but it's too essential to leave out. Tough to decide what to swap out but I went with WHAT WE DO IN THE SHADOWS (more a comedy). New list:


THE CABINET OF DR. CALIGARI (1920) *
NOSFERATU (1922) *
FRANKENSTEIN (1931)
DRACULA (1931)
DR. JEKYLL & MR. HYDE (1931)
FREAKS (1932)
THE INVISIBLE MAN (1933)
KING KONG (1933)
THE BRIDE OF FRANKENSTEIN (1935)
PSYCHO (1960)
THE INNOCENTS (1961)
KWAIDAN (1964) *
ONIBABA (1964) *
NIGHT OF THE LIVING DEAD (1968)
ROSEMARY'S BABY (1968)
THE EXORCIST (1973)
DAWN OF THE DEAD (1978)
HALLOWEEN (1978)
THE SHINING (1980)
THE THING (1982)
EVIL DEAD II (1987)
SHAUN OF THE DEAD (2004)
LET THE RIGHT ONE IN (2008) *
I SAW THE DEVIL (2010) *
GET OUT (2017)

The asterisks are for silent or subtitled films. If the person just refuses to watch those, you can substitute

DEAD OF NIGHT (1945)
DEAD ALIVE (BRAIN DEAD) 1992
THE OTHERS (2001)
SAW (2004)
ZOMBIELAND (2009)
TUCKER AND DALE VS. EVIL (2010)
WHAT WE DO IN THE SHADOWS (2014)

^ There's a couple I would have listed if I could have. EYES WITHOUT A FACE is one.
WHITE ZOMBIE is another.

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Honorable mentions that didn't quite make my list:
White Zombie (1932)
The Mummy (1932)
The Invisible Man (1933)
The Thing from Another World (1951)
The Beast from 20,000 Fathoms (1953)
Creature from the Black Lagoon (1954)
House on Haunted Hill (1959)
The Haunting (1963)
At Midnight I'll Take Your Soul (1964)
The Masque of the Red Death (1964)
Black Christmas (1974)
Friday the 13th (1980)
The Lost Boys (1987)
The Silence of the Lambs (1991)
Ringu (1998)
28 Days Later... (2002)
The Conjuring (2013)

I gotta do it!
25 more!
1. WHITE ZOMBIE (1932)
2. EYES WITHOUT A FACE (1960)
3. LAST HOUSE ON THE LEFT (1972)
4. ISLAND OF LOST SOULS (1932)
5. HORROR OF DRACULA (1958)
6. SON OF FRANKENSTEIN (1939)
7. M (1931) Some would debate this as being a 'horror film'. Let them debate.
8. INVASION OF THE BODY SNATCHERS (1956)
9. the GOLEM (1920)
10. GODZILLA (1954)
...uhm...I'll be back!

And here I am!
11. DR.JEKYLL AND MR.HYDE (1931)
12. the TESTAMENT OF DR.MABUSE (1932)
13. TERROR CREATURES FROM THE GRAVE (1965)
14. FREAKS (1932)
15....let me think.

Why am I not seeing The Abominable Dr. Phibes (1971) on any of these lists?

Also a fan of The Pit and the Pendulum (1961) with Vincent Price.

Might have made it if I expanded the list to 50.

Put it on your list?

 OK. I'm back again.

15. VAMPYR (1932)
16. the BODY SNATCHER (1945)
17. MARK OF THE VAMPIRE (1935)
18. DEEP RED (1975)
19. the BIRDS (1963)

I'll be back!

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I can't believe I forgot about When A Stranger Calls.