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Inheritance tax and estate tax: who pays, how much, state by state
Short answer
Most heirs owe no tax on an inheritance. It is not federal income, and the federal estate tax applies only to estates above $15,000,000 for deaths in 2026, at 40%, paid by the estate. Five states tax what heirs receive: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Twelve states and DC tax large estates.
Calculator · 19 rules
Estate and inheritance tax calculator
Each state read from its revenue department, attorney general or statute; the federal line from the IRS Form 706 instructions (July 2026) · checked Oct 22, 2026
Where did the person who died live?
Estate taxes come out of the estate before heirs are paid; an inheritance tax is figured on each heir's share. Where a state's math is not a plain table (Illinois, New York near its exclusion, Maryland's ceiling) the result shows the state's own rule. Each rule comes from the official source linked in the result. It runs on your device: nothing you type is stored or sent. General information, not legal advice.
Key points
- Not income
- An inheritance is not income on your federal return. Interest or rent it earns later, a gain when you sell, and most money taken from an inherited IRA are.
- Federal line
- Only estates above $15,000,000 (deaths in 2026) owe federal estate tax, at 40% of the excess, paid by the estate. Everything left to a spouse or charity is deducted.
- Heirs taxed
- Pennsylvania taxes children 4.5% and others up to 15%; New Jersey siblings 11% to 16% above $25,000; Kentucky nieces and nephews 4% to 16%; Maryland non-family 10%; Nebraska close relatives 1% above $100,000 and others up to 15%. Spouses pay nothing in the first four.
- Estates taxed
- State lines run from $1,000,000 in Oregon to $15,000,000 in Connecticut. New York taxes the whole estate once it passes 105% of $7,350,000.
Most families owe no tax when someone dies. The inheritance is not income, and the federal estate tax applies only to the largest estates. The exceptions are state taxes: five states tax what heirs receive, and twelve states and the District of Columbia tax estates far smaller than the federal line. Which one applies depends on where the person lived, where their real estate is, how big the estate is and how you were related.
Below: the calculator, the difference between the taxes, the federal rules for 2026, every inheritance-tax and estate-tax state with its brackets and effective dates, worked examples with real numbers, who pays and the deadlines, a table of all 50 states and DC, and answers to common questions. Part of the Wills, probate & power of attorney guide. This page explains the law; it is not tax or legal advice.
Estate tax vs. inheritance tax: what each one taxes
Three different taxes get called "death taxes", and most families owe none of them. An estate tax is charged on everything the person owned at death and is paid by the estate, through the executor, before anyone inherits. An inheritance tax is charged on what each heir receives, at a rate set by the heir's relationship to the person who died. Income tax does not apply to the inheritance itself. The IRS puts it plainly: the estate tax "is a tax on your right to transfer property at your death." IRS: Estate tax · IRS Publication 525
| Estate tax | Inheritance tax | Income tax | |
|---|---|---|---|
| Who charges it | The federal government; 12 states and DC | Five states: Pennsylvania, New Jersey, Kentucky, Maryland, Nebraska | Federal and most states |
| What is taxed | The whole taxable estate above an exemption | Each heir's share, by relationship | Not the inheritance itself; later income from it, and most inherited IRA and pension money |
| Who pays | The estate, before distribution | The heir, usually through the executor | The heir, on their own return |
| Federal line for deaths in 2026 | $15,000,000, then 40% | None | None on the gift or bequest |
| Spouses | Deduction for property passing to a surviving spouse | Exempt in Pennsylvania, New Jersey, Kentucky and Maryland | None on the inheritance |
Maryland is the one state with both taxes. Where the person lived decides which state's death taxes apply to most of the estate; real estate is usually taxed by the state where it sits, so a house in another state can bring that state's tax too. How the estate is settled is a separate question: see probate and, for small estates, the small estate affidavit. The rest of the wills, probate and power of attorney guide covers the planning side.
The federal estate tax: $15,000,000 for deaths in 2026
For a death in 2026 an estate owes federal estate tax only if the taxable estate, plus taxable gifts made during life, is over the basic exclusion amount of $15,000,000. Public Law 119-21, signed July 4, 2025, set that figure in 26 U.S.C. § 2010(c)(3) for calendar year 2026. It was $13,990,000 for deaths in 2025 and $13,610,000 in 2024. Above the line the rate is 40%, the top bracket since 2013. IRS Form 706 instructions (07/2026) · IRS: What's new, estate and gift tax
- The exclusion: $15,000,000 "In 2026, the basic exclusion amount, as adjusted for inflation under section 2010(c)(3), is $15,000,000." The unified credit cancels the tax on everything up to that line.IRS Form 706 instructions
- The rate: 40% The rate schedule reaches 40% at $1,000,000, so every taxable dollar above $15,000,000 is taxed at 40%. A single person's $20,000,000 taxable estate owes about $2,000,000.Form 706 instructions, Table A
- Spouses and charities Property passing to a surviving spouse or to qualified charities is deducted, so a first spouse's estate left to the survivor usually owes nothing.IRS: Estate tax
- Portability The estate of a married person can pass the unused exclusion to the surviving spouse, but only by filing an estate tax return for the first death, even when no tax is due.IRS: Estate tax
- Deadline: 9 months Form 706 is due within 9 months after the death; an automatic 6-month extension of time to file is available.IRS Form 706 instructions
- State taxes are deductible State estate, inheritance, legacy or succession taxes paid are deducted on Form 706, with no dollar limit.IRS Form 706 instructions, line 3b
States with an inheritance tax: who pays and how much
Five states tax what heirs receive: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Iowa's tax ended for deaths on or after January 1, 2025. The rate depends on how you were related to the person who died, and closer family pays less or nothing. Being legally married matters: an unmarried partner is taxed as "someone else" unless a valid common-law marriage exists (New Jersey also exempts civil union and registered domestic partners).
| State | Spouse | Children and grandchildren | Parents | Brothers and sisters | Everyone else | Discount, deadline |
|---|---|---|---|---|---|---|
| Pennsylvania | 0% | 4.5% | 4.5% (0% from a child aged 21 or younger) | 12% | 15% (charities exempt) | 5% off if paid within 3 months; delinquent after 9 months |
| New Jersey | Exempt (Class A, with civil union and domestic partners) | Exempt (Class A, stepchildren too) | Exempt (Class A) | Class C: first $25,000 free, then 11% to 16% | Class D: 15% on the first $700,000, 16% above | — |
| Kentucky | Exempt (Class A) | Exempt (Class A) | Exempt (Class A) | Exempt (Class A) | Class B (nieces, nephews, aunts, uncles, in-laws, great-grandchildren): $1,000 exemption, 4% to 16%; Class C (all others): $500 exemption, 6% to 16% | 5% off if paid within 9 months; return due within 18 months |
| Maryland | Exempt | Exempt (and their descendants, stepchildren) | Exempt (and grandparents, stepparents) | Exempt | 10%; nothing on $1,000 or less to one person | — |
| Nebraska | Not checked for this page | 1% above $100,000 | 1% above $100,000 | 1% above $100,000 | Aunts, uncles, nieces, nephews: 11% above $40,000; everyone else 15% above $25,000; heirs under 22 exempt | County tax, deaths on or after January 1, 2023 (LB310) |
| Iowa | Repealed for deaths on or after January 1, 2025 | — | — | — | — | — |
Pennsylvania lists no exemption amount for any class: the rate applies from the first dollar ($0 exempt). Property owned jointly by spouses is exempt, and since June 30, 2012 certain farmland passing to eligible heirs is too. Pennsylvania Department of Revenue
New Jersey brackets. Class C pays nothing on the first $25,000, 11% on the next $1,075,000, 13% on the next $300,000, 14% on the next $300,000 and 16% over $1,700,000. Measured on the part above the $25,000, the 11% runs to $1,075,000, the 13% to $1,375,000 and the 14% to $1,675,000. Class D has a $0 exemption: 15% on the first $700,000 and 16% above it. N.J. Division of Taxation: tax rates
| Kentucky share | Class B (exemption $1,000) | Class C (exemption $500) |
|---|---|---|
| $500 or less | $0 | $0 |
| $500 to $1,000 | $0 | 6% of the amount over $500 (the first $500 above the exemption) |
| $1,000 to $10,000 | 4% of the amount over $1,000: the first $9,000 above the exemption | $30 + 6%: 6% up to $9,500 above the exemption |
| $10,000 to $20,000 | $360 + 5%: up to $19,000 above the exemption | $570 + 8%: up to $19,500 above the exemption |
| $20,000 to $30,000 | $860 + 6%: up to $29,000 | $1,370 + 10%: up to $29,500 |
| $30,000 to $45,000 | $1,460 + 8%: up to $44,000 | $2,370 + 12%: up to $44,500 |
| $45,000 to $60,000 | $2,660 + 10%: up to $59,000 | $4,170 + 14%: up to $59,500 |
| $60,000 to $100,000 | $4,160 + 12%: up to $99,000 | $6,270 + 16% |
| $100,000 to $200,000 | $8,960 + 14%: up to $199,000 | $12,670 + 16% |
| $200,000 and over | $22,960 + 16% | $28,670 + 16% |
States with an estate tax: exemptions and rates for 2026
Twelve states and the District of Columbia tax estates, most with a far lower line than the federal $15,000,000. Each figure below is for a death in 2026 unless the row says otherwise; the rate is applied to the taxable estate above the exemption unless noted.
| State | Exemption | Rates | Effective | Due | Citation |
|---|---|---|---|---|---|
| Oregon | $1,000,000 | 10% to 16% | Rev. 07-22-25 instructions | 12 months after death | Form OR-706 instructions (2025), Part 6 |
| Rhode Island | $1,838,056 | 0.8% to 16% on the net taxable estate (less $60,000), minus an $87,940 credit, times the Rhode Island share | January 1, 2026 | 9 months after death | R.I. Gen. Laws § 44-22-1.1 · ADV 2025-27 |
| Massachusetts | $2,000,000 | 0.8% to 16% on the whole taxable estate (less $60,000), minus a $99,600 credit | January 1, 2023 | 9 months after death | Mass. Gen. Laws c. 65C, § 2A |
| Minnesota | $3,000,000 | 13% to 16% | Since 2020 | — | Minn. Stat. §§ 291.016, 291.03 |
| Washington | $3,000,000 | 10% to 20% | July 1, 2026 | 9 months after death | Washington DOR: estate tax tables (Table W) |
| Illinois | $4,000,000 | Interrelated calculation | 2023 and later | — | Illinois Estate and Generation-Skipping Transfer Tax Act |
| District of Columbia | $4,988,400 | 11.2% to 16% | January 1, 2026 | 10 months after death | D.C. Code § 47-3702 |
| Maryland | $5,000,000 | Up to 16% | January 1, 2019 | — | Md. Code, Tax-Gen. § 7-309 |
| Vermont | $5,000,000 | 16% | June 18, 2026 (filing threshold) | — | 32 V.S.A. § 7442a |
| Hawaii | $5,490,000 | 10% to 20% | January 1, 2020 (rates) | — | Form M-6 instructions (Rev. 2025) |
| Maine | $7,160,000 | 8% to 12% | January 1, 2026 | — | Form 706ME |
| New York | $7,350,000 (cliff at 105%) | 3.06% to 16% on the whole estate | January 1, 2026 | 9 months after death | N.Y. Tax Law § 952 |
| Connecticut | $15,000,000 | 12% (cap $15 million) | January 1, 2023 (rate) | — | Conn. Gen. Stat. § 12-391 |
Rate tables, bracket by bracket
The calculator uses these brackets. "Above the exemption" is the taxable estate minus the state's exemption; each rate applies only to the dollars inside its bracket.
Oregon (taxable estate; tax starts at $1,000,000). Form OR-706 instructions (2025), Part 6
| Taxable estate | Above the $1,000,000 exemption | Tax |
|---|---|---|
| $1,000,000 to $1,500,000 | First $500,000 | 10% |
| $1,500,000 to $2,500,000 | Up to $1,500,000 | $50,000 + 10.25% |
| $2,500,000 to $3,500,000 | Up to $2,500,000 | $152,500 + 10.5% |
| $3,500,000 to $4,500,000 | Up to $3,500,000 | $257,500 + 11% |
| $4,500,000 to $5,500,000 | Up to $4,500,000 | $367,500 + 11.5% |
| $5,500,000 to $6,500,000 | Up to $5,500,000 | $482,500 + 12% |
| $6,500,000 to $7,500,000 | Up to $6,500,000 | $602,500 + 13% |
| $7,500,000 to $8,500,000 | Up to $7,500,000 | $732,500 + 14% |
| $8,500,000 to $9,500,000 | Up to $8,500,000 | $872,500 + 15% |
| $9,500,000 and up | Over $8,500,000 | $1,022,500 + 16% |
The instructions' own example: a $1,700,000 taxable estate owes $50,000 plus $200,000 x 10.25% = $20,500, a total of $70,500.
Washington (deaths on or after July 1, 2026; Washington taxable estate, after the $3,000,000 exclusion). For deaths from July 1, 2025 to June 30, 2026 the same brackets carried 10%, 15%, 17%, 19%, 23%, 26%, 30% and 35%. Washington DOR: Table W
| Washington taxable estate | Rate |
|---|---|
| $0 to $1,000,000 | 10% |
| $1,000,000 to $2,000,000 | 14% |
| $2,000,000 to $3,000,000 | 15% |
| $3,000,000 to $4,000,000 | 16% |
| $4,000,000 to $6,000,000 | 18% |
| $6,000,000 to $7,000,000 | 19% |
| $7,000,000 to $9,000,000 | 19.5% |
| $9,000,000 and up | 20% |
Minnesota (Minnesota taxable estate, after the $3,000,000 exclusion). Minn. Stat. § 291.03, subd. 1(b); § 291.016, subd. 3
| Minnesota taxable estate | Tax |
|---|---|
| Not over $7,100,000 | 13% |
| $7,100,000 to $8,100,000 | $923,000 + 13.6% |
| $8,100,000 to $9,100,000 | $1,059,000 + 14.4% |
| $9,100,000 to $10,100,000 | $1,203,000 + 15.2% |
| Over $10,100,000 | $1,355,000 + 16% |
Hawaii (net taxable estate, after the $5,490,000 exclusion). Form M-6 instructions, tax rate schedule as of January 1, 2020
| Net taxable estate | Tax |
|---|---|
| $0 to $1,000,000 | 10% |
| $1,000,000 to $2,000,000 | $100,000 + 11% |
| $2,000,000 to $3,000,000 | $210,000 + 12% |
| $3,000,000 to $4,000,000 | $330,000 + 13% |
| $4,000,000 to $5,000,000 | $460,000 + 14% |
| $5,000,000 to $10,000,000 | $600,000 + 15.7% |
| Over $10,000,000 | $1,385,000 + 20% |
Maine (deaths in 2026). Maine Revenue Services: Form 706ME
| Maine taxable estate | Above the $7,160,000 exclusion | Tax |
|---|---|---|
| $0 to $7,160,000 | — | $0 |
| $7,160,000 to $10,160,000 | First $3,000,000 | 8% |
| $10,160,000 to $13,160,000 | Up to $6,000,000 | $240,000 + 10% |
| Over $13,160,000 | Over $6,000,000 | $540,000 + 12% |
District of Columbia (resident decedents dying after December 31, 2015). The part of the taxable estate up to the zero bracket amount is taxed at 0%; each dollar above it is taxed at the rate of the bracket it falls in. With the 2026 exclusion of $4,988,400 (Office of Tax and Revenue notice of October 1, 2025): D.C. Code § 47-3702(a-1)
| Taxable estate | Above $4,988,400 | Rate |
|---|---|---|
| $4,988,400 to $5,000,000 | First $11,600 | 11.2% |
| $5,000,000 to $6,000,000 | Up to $1,011,600 | 12% |
| $6,000,000 to $7,000,000 | Up to $2,011,600 | 12.8% |
| $7,000,000 to $8,000,000 | Up to $3,011,600 | 13.6% |
| $8,000,000 to $9,000,000 | Up to $4,011,600 | 14.4% |
| $9,000,000 to $10,000,000 | Up to $5,011,600 | 15.2% |
| Over $10,000,000 | Over $5,011,600 | 16% |
Massachusetts and Rhode Island use the same old federal state death tax credit table. Both apply it to the taxable estate less $60,000 and then subtract a credit: $99,600 in Massachusetts and, for deaths in 2026, $87,940 in Rhode Island, so nothing is due at or under $2,000,000 and $1,838,056. The brackets below add the $60,000 back, so they read on the taxable estate; Rhode Island then multiplies the tax by the share of the estate in Rhode Island. Mass. Gen. Laws c. 65C, § 2A · Form RI-706 · ADV 2025-27
| Taxable estate | Rate on the dollars in the bracket |
|---|---|
| $0 to $100,000 | 0% |
| $100,000 to $150,000 | 0.8% |
| $150,000 to $200,000 | 1.6% |
| $200,000 to $300,000 | 2.4% |
| $300,000 to $500,000 | 3.2% |
| $500,000 to $700,000 | 4% |
| $700,000 to $900,000 | 4.8% |
| $900,000 to $1,100,000 | 5.6% |
| $1,100,000 to $1,600,000 | 6.4% |
| $1,600,000 to $2,100,000 | 7.2% |
| $2,100,000 to $2,600,000 | 8% |
| $2,600,000 to $3,100,000 | 8.8% |
| $3,100,000 to $3,600,000 | 9.6% |
| $3,600,000 to $4,100,000 | 10.4% |
| $4,100,000 to $5,100,000 | 11.2% |
| $5,100,000 to $6,100,000 | 12% |
| $6,100,000 to $7,100,000 | 12.8% |
| $7,100,000 to $8,100,000 | 13.6% |
| $8,100,000 to $9,100,000 | 14.4% |
| $9,100,000 to $10,100,000 | 15.2% |
| Over $10,100,000 | 16% |
Check: on a $2,000,000 Massachusetts estate the table gives exactly $99,600, the credit, so the tax is $0. On $3,000,000 it gives $182,000, less the $99,600 credit: $82,400 of Massachusetts tax.
New York (the whole New York taxable estate, once it is over 105% of the exclusion). N.Y. Tax Law § 952(b)
| New York taxable estate | Tax |
|---|---|
| Not over $500,000 | 3.06% |
| $500,000 to $1,000,000 | $15,300 + 5% |
| $1,000,000 to $1,500,000 | $40,300 + 5.5% |
| $1,500,000 to $2,100,000 | $67,800 + 6.5% |
| $2,100,000 to $2,600,000 | $106,800 + 8% |
| $2,600,000 to $3,100,000 | $146,800 + 8.8% |
| $3,100,000 to $3,600,000 | $190,800 + 9.6% |
| $3,600,000 to $4,100,000 | $238,800 + 10.4% |
| $4,100,000 to $5,100,000 | $290,800 + 11.2% |
| $5,100,000 to $6,100,000 | $402,800 + 12% |
| $6,100,000 to $7,100,000 | $522,800 + 12.8% |
| $7,100,000 to $8,100,000 | $650,800 + 13.6% |
| $8,100,000 to $9,100,000 | $786,800 + 14.4% |
| $9,100,000 to $10,100,000 | $930,800 + 15.2% |
| Over $10,100,000 | $1,082,800 + 16% |
Rules that are not a simple table
- New York: the 105% cliff At or below the $7,350,000 basic exclusion amount, no New York tax. Above 105% of it, $7,717,500, "no credit shall be allowed", so an estate just $367,500 over the line is taxed on everything from the first dollar: $650,800 + 13.6% of $617,500 = $734,780. Between the two, the credit shrinks by a formula on the Form ET-706 worksheet.N.Y. Tax Law § 952(c)(1)
- Illinois: an interrelated calculation Illinois has no rate table: the tax and the deduction for it depend on each other, and the Attorney General's calculator solves them together. Its examples: $4,000,000 owes $0; $5,000,000, all in Illinois, owes $285,714; the same estate half in Florida owes $142,857.Illinois Attorney General fact sheet
- Maryland: both taxes, and a ceiling The estate tax uses the old federal state-death-tax credit, which "may not exceed 16% of the amount" above $5,000,000; the 10% inheritance tax is separate and applies to heirs outside the exempt family.Md. Code, Tax-Gen. § 7-309 · § 7-204
- Connecticut: a $15 million cap, and gifts Connecticut follows the federal exclusion, taxes 12% of the excess, and caps the tax at $15 million, reduced by Connecticut gift tax already paid on gifts made since January 1, 2016.Conn. Gen. Stat. § 12-391
- Washington: changed twice in 12 months Deaths from July 1, 2025 to June 30, 2026 face rates up to 35% (with a $3,076,000 exclusion from January 1, 2026); deaths on or after July 1, 2026 return to 10% to 20% with a $3,000,000 exclusion that "is not set to increase going forward".Washington DOR
- Vermont: the 2026 filing change Vermont taxes 16% of the excess over $5,000,000, counting taxable gifts made within 2 years of death (the statute: "16 percent of the excess over $5,000,000.00"), and, since June 18, 2026, no longer requires a return below that line unless a federal return is due.32 V.S.A. § 7442a
Worked examples
1. $100,000 to a nephew in Pennsylvania. Pennsylvania Department of Revenue
- Relationship
- Other heirA nephew is not a spouse, lineal heir or sibling, so the 15% rate applies.
- Tax
- $15,000$100,000 x 15%. The executor usually pays it from the estate and charges it to the nephew's share.
- Paid within 3 months
- $14,250The 5% discount saves $750. Unpaid tax is delinquent 9 months after the death.
- Same $100,000 to a child or a sister
- $4,500 or $12,0004.5% for a child, 12% for a sibling; $0 for a spouse. A child's $500,000 share owes $22,500.
2. A $3 million estate in Oregon. Form OR-706 instructions (2025), Part 6
- Taxable estate
- $3,000,000$2,000,000 above Oregon's $1,000,000 line.
- Brackets
- $50,000 + $102,500 + $52,50010% on the first $500,000, 10.25% on the next $1,000,000, 10.5% on the last $500,000.
- Oregon tax
- $205,000The table gives the same: $152,500 + 10.5% x $500,000. Due 12 months after the death.
- The same estate elsewhere
- $0In Minnesota and Washington it sits exactly at the $3,000,000 exclusion; in New York and every state with no estate tax, nothing is due. Federal tax: $0, far below $15,000,000.
- The same estate in Massachusetts
- $82,400$182,000 from the table on the $3,000,000 estate, less the $99,600 credit (see the rate tables).
3. $500,000 to a brother or sister in New Jersey. N.J. Division of Taxation
- Class
- Class CBrothers and sisters are Class C; spouses, children and parents are Class A and pay nothing.
- Tax-free part
- $25,000The first $25,000 to a Class C beneficiary is not taxed.
- Tax
- $52,250$475,000 x 11%. The 13% bracket starts only above $1,100,000.
- Same $500,000 to a friend
- $75,000Class D: 15% from the first dollar, up to $700,000.
4. "How much tax if I inherit $100,000?" State pages above · IRS Publication 525
- Federal income tax
- $0An inheritance is not income; only later earnings on it, and inherited IRA or pension money, are.
- Pennsylvania, as a child
- $4,5004.5%.
- New Jersey, as a sibling
- $8,250($100,000 - $25,000) x 11%.
- Kentucky, as a nephew
- $8,960Class B: $4,160 + 12% of the $40,000 over $60,000.
- Maryland, as a nephew
- $10,00010%.
- Any of the 33 states with neither tax
- $0Unless the estate itself is over $15,000,000, when the estate pays 40% on the excess before you inherit.
5. A $20 million estate, federal tax. IRS Form 706 instructions
- Left to children
- $2,000,000$20,000,000 - $15,000,000 = $5,000,000 x 40%, before lifetime gifts, deductions and any state tax.
- Left to a surviving spouse
- $0The marital deduction removes it; the executor can file to pass the unused exclusion to the spouse.
Estate and inheritance tax by state: all 50 states and DC
Status for deaths on October 22, 2026, read from each state's revenue department, legislature, attorney general or statute (see the sources at the end). 33 states have neither tax, and Iowa ended its inheritance tax on January 1, 2025. Nebraska's rule for a surviving spouse is the one figure in this table we could not read on an official page. The calculator at the top uses these rules.
| State | Estate tax: exemption | Estate tax rates | Inheritance tax | Effective | Citation | Source |
|---|---|---|---|---|---|---|
| Alabama | No | — | No | — | — | — |
| Alaska | No | — | No | — | — | — |
| Arizona | No | — | No | — | — | — |
| Arkansas | No | — | No | — | — | — |
| California | No | — | No | — | — | — |
| Colorado | No | — | No | — | — | — |
| Connecticut | Yes: $15,000,000 (equal to the federal basic exclusion amount) | 12% of the excess; tax capped at $15 million; gifts taxed too | No | 12% rate since January 1, 2023; 2026 amount set by the IRS | Conn. Gen. Stat. § 12-391 | Connecticut General Assembly |
| Delaware | No | — | No | — | — | — |
| District of Columbia | Yes: $4,988,400 for deaths in 2026 | 11.2% to 16% above the exclusion | No (only for deaths before April 1, 1987) | Rates since January 1, 2016; exclusion for deaths in 2026 (notice of October 1, 2025) | D.C. Code §§ 47-3701, 47-3702 | D.C. Office of Tax and Revenue |
| Florida | No | — | No | — | — | — |
| Georgia | No | — | No | — | — | — |
| Hawaii | Yes: $5,490,000 | 10% to 20% | No | Exclusion since January 1, 2018; rates as of January 1, 2020 | Form M-6 instructions (Rev. 2025) | Hawaii Department of Taxation |
| Idaho | No | — | No | — | — | — |
| Illinois | Yes: $4,000,000 (a threshold, not a credit) | Interrelated calculation: $285,714 on a $5,000,000 estate | No | Fact sheet for deaths in 2023 and later | Illinois Estate and Generation-Skipping Transfer Tax Act | Illinois Attorney General |
| Indiana | No | — | No | — | — | — |
| Iowa | No | — | No: repealed for deaths on or after January 1, 2025 | January 1, 2025 | Iowa Department of Revenue | Iowa Department of Revenue |
| Kansas | No | — | No | — | — | — |
| Kentucky | No | — | Yes: Class A (spouse, parent, child, grandchild, brother, sister) exempt; Class B $1,000 exemption, 4% to 16%; Class C $500 exemption, 6% to 16% | Class A exempt for deaths after June 30, 1998 | Ky. Rev. Stat. ch. 140 (Guide 92F101) | Kentucky Department of Revenue |
| Louisiana | No | — | No | — | — | — |
| Maine | Yes: $7,160,000 | 8%, 10%, 12% | No | Deaths in 2026 ($7,000,000 in 2025) | Form 706ME | Maine Revenue Services |
| Maryland | Yes: $5,000,000 | Up to 16% of the excess | Yes: 10%; spouse, children and their descendants, parents, grandparents, siblings, stepchildren, stepparents and a child's spouse exempt; $1,000 or less to one person exempt | Exclusion since January 1, 2019 | Md. Code, Tax-Gen. §§ 7-203, 7-204, 7-309 | Maryland General Assembly |
| Massachusetts | Yes: $2,000,000; above it the whole estate is taxed, less a $99,600 credit | 0.8% to 16% (the old federal credit table) | No | Deaths on or after January 1, 2023 (St. 2023, c. 50) | Mass. Gen. Laws c. 65C, § 2A | Massachusetts Department of Revenue: estate tax guide |
| Michigan | No | — | No | — | — | — |
| Minnesota | Yes: $3,000,000 | 13% to 16% | No | Exclusion since 2020; rates since 2018 | Minn. Stat. §§ 291.016, 291.03 | Minnesota Revisor of Statutes |
| Mississippi | No | — | No | — | — | — |
| Missouri | No | — | No | — | — | — |
| Montana | No | — | No | — | — | — |
| Nebraska | No | — | Yes: county tax; 1% above $100,000 (close relatives), 11% above $40,000 (aunts, uncles, nieces, nephews), 15% above $25,000 (others); heirs under 22 exempt | Deaths on or after January 1, 2023 (LB310) | Neb. Rev. Stat. §§ 77-2004 to 77-2006 | Nebraska Legislature (Unicameral Update); Nebraska Department of Revenue forms |
| Nevada | No | — | No | — | — | — |
| New Hampshire | No | — | No | — | — | — |
| New Jersey | No (ended for deaths on or after January 1, 2018) | — | Yes: Class A (spouse, partner, children, stepchildren, grandchildren, parents, grandparents) exempt; Class C (siblings, a child's spouse) $25,000 free, then 11% to 16%; Class D (others) 15% to $700,000, then 16% | Estate tax ended January 1, 2018 | N.J. Division of Taxation: inheritance tax rates and beneficiary classes | N.J. Division of Taxation |
| New Mexico | No | — | No | — | — | — |
| New York | Yes: $7,350,000; whole estate taxed above 105% ($7,717,500) | 3.06% to 16% | No | January 1, 2026 ($7,160,000 in 2025) | N.Y. Tax Law § 952 | NY Department of Taxation and Finance |
| North Carolina | No | — | No | — | — | — |
| North Dakota | No | — | No | — | — | — |
| Ohio | No | — | No | — | — | — |
| Oklahoma | No | — | No | — | — | — |
| Oregon | Yes: $1,000,000 | 10% to 16% | No | Return due 12 months after death for deaths on or after January 1, 2022 | Form OR-706 instructions (2025), Part 6 | Oregon Department of Revenue |
| Pennsylvania | No | — | Yes: spouse 0%; children, grandchildren and other lineal heirs 4.5%; siblings 12%; others 15%; a parent from a child 21 or younger 0% | In force on October 21, 2026 | Pennsylvania Department of Revenue: inheritance tax rates | Pennsylvania Department of Revenue |
| Rhode Island | Yes: $1,838,056 for deaths in 2026; above it the estate is taxed, less an $87,940 credit | 0.8% to 16% (the old federal credit table), times the Rhode Island share | No | Deaths on or after January 1, 2026 (Advisory ADV 2025-27, December 30, 2025) | R.I. Gen. Laws § 44-22-1.1 | Rhode Island Division of Taxation |
| South Carolina | No | — | No | — | — | — |
| South Dakota | No | — | No | — | — | — |
| Tennessee | No | — | No | — | — | — |
| Texas | No | — | No | — | — | — |
| Utah | No | — | No | — | — | — |
| Vermont | Yes: $5,000,000 | 16% | No | $5,000,000 since 2021; filing threshold matched June 18, 2026 | 32 V.S.A. § 7442a | Vermont Department of Taxes |
| Virginia | No | — | No | — | — | — |
| Washington | Yes: $3,000,000 (deaths on or after July 1, 2026) | 10% to 20% | No | July 1, 2026 ($3,076,000 and up to 35% for deaths January 1 to June 30, 2026) | Washington DOR: estate tax tables (Table W) | Washington Department of Revenue |
| West Virginia | No | — | No | — | — | — |
| Wisconsin | No | — | No | — | — | — |
| Wyoming | No | — | No | — | — | — |
Who pays, and when it is due
The executor (personal representative) files the returns and pays the tax from the estate before the heirs are paid. An inheritance tax is the heir's tax but is normally withheld from the share. If the will or trust says who bears the taxes, the executor usually follows it; the will or trust may say that taxes come out of the remainder rather than out of each gift. An agent under a power of attorney has no authority after the death: only the executor does.
- 3 months
Pennsylvania: inheritance tax paid by then is 5% less.
- 9 months
Federal Form 706 and tax; New York and Washington returns and tax; Pennsylvania tax delinquent; Kentucky tax paid by then is 5% less.
- 10 months
District of Columbia return and tax.
- 12 months
Oregon return and tax (deaths on or after January 1, 2022).
- 18 months
Kentucky inheritance tax return, if tax is due.
What to do next
| If… | What to do | Good to know |
|---|---|---|
| The estate may be over $15,000,000, or the person was married | Have the executor file Form 706 within 9 months (or extend by 6 months). For a married person, filing elects portability of the unused exclusion even when no tax is due. | IRS: Estate tax. |
| The person lived in Pennsylvania, New Jersey, Kentucky or Maryland | Find your class in the table above and ask the executor to pay early: 5% off within 3 months in Pennsylvania, within 9 months in Kentucky. | Spouses pay nothing in all four. |
| The person lived in an estate-tax state | Compare the estate with that state's exemption above; the return can be due even when no federal return is. | Oregon starts at $1,000,000. |
| The estate is small | Check whether heirs can collect with a small estate affidavit instead of a full probate case. | Death taxes still apply where the rules reach. |
| You inherited a house | Your tax basis is generally the value on the date of death; selling for more is a taxable gain. Retitling and sales can bring a transfer tax and a new deed (quitclaim deed). | IRS: Gifts and inheritances FAQ. |
| You inherited an IRA or pension | Expect income tax on withdrawals: "you may have to include part of the inherited amount in your income." | IRS Publication 525. |
| You are planning your own estate | Use the $19,000 annual gift exclusion, gifts to a spouse and charity, and a will or living trust; name an agent with a power of attorney and a guardian for minor children. | A trust avoids probate; ask a tax adviser before counting on it to cut estate tax. |
| The heirs disagree about who bears the tax | Read what the will or trust says about taxes, then talk it through with the executor. A lawyer or legal aid can read the documents with you. | Practise the conversation with the AI mediator first. |
Common questions
How much can you inherit from your parents without paying taxes?
Federally, any amount: an inheritance is not income, and the estate tax hits only estates over $15,000,000 for deaths in 2026, paid by the estate. Children pay 4.5% inheritance tax in Pennsylvania and nothing in New Jersey, Kentucky or Maryland; Nebraska's county tax takes 1% of a child's share above $100,000. Twelve states and DC tax large estates before you inherit.
Do I pay tax on an inheritance?
Not federal income tax on the inheritance itself: "property you receive as a gift, bequest, or inheritance isn't included in your income" (IRS Publication 525). You do owe tax on later interest, dividends or rent, on most withdrawals from an inherited IRA or pension, and on a gain when you sell. A state inheritance tax applies only in five states.
How much tax do you pay if you inherit $100,000?
Usually $0. In Pennsylvania a child pays $4,500 and a nephew $15,000; in New Jersey a sibling pays $8,250; in Kentucky a nephew pays $8,960; in Maryland a nephew pays $10,000. Spouses pay nothing in any of them. See the worked examples.
What are the federal estate tax brackets for 2026?
The federal rate schedule tops out at 40% on taxable amounts over $1,000,000, and the $15,000,000 basic exclusion cancels the tax on everything below it, so in practice an estate pays 40% on the taxable amount above $15,000,000. The top rate has been 40% since 2013. IRS Form 706 instructions
What is the difference between estate tax and inheritance tax?
An estate tax is charged on the whole estate and paid by the executor before distribution; an inheritance tax is charged on each heir's share at a rate set by the relationship. Maryland has both. See the comparison.
What assets are subject to inheritance tax?
Generally everything that passes at death: cash, investments, real estate, vehicles and personal property. Kentucky taxes all of a resident's property except real estate in another state, and Kentucky property of nonresidents. Pennsylvania exempts property owned jointly by spouses and some farmland passing to eligible heirs.
What are the tax implications of gifting?
Gifts up to $19,000 per person in 2026 are not taxable gifts, and neither are tuition or medical bills you pay for someone or gifts to your spouse. Larger gifts use up part of the $15,000,000 lifetime exclusion. The donor, not the recipient, pays any gift tax, and the recipient generally keeps the donor's tax basis. IRS: Gift tax FAQ
Which states have no estate tax and no inheritance tax?
33 states, including California, Florida, Texas, Georgia, Arizona and North Carolina, plus Iowa since January 1, 2025. Their residents face only the federal estate tax. The full list.
Does it matter where I live or where the person lived?
The person's home state is what counts for most of the estate. Real estate is taxed by the state where it sits: Kentucky taxes nonresidents' Kentucky real estate and tangible property, and Washington and New York tax nonresidents' property located there. Under the rules on this page, the heir's own home state does not matter: the tax follows the person who died and where their property is.
Does a surviving spouse pay estate or inheritance tax?
Almost never. Property passing to a spouse is deducted from the federal estate, and Pennsylvania, New Jersey, Kentucky and Maryland exempt spouses from inheritance tax. The tax may come due at the second death, which is why portability matters. Unmarried partners are not spouses unless a common-law marriage is valid.
Official sources
- IRS: Estate tax (filing threshold by year of death; spouse deduction; portability) irs.gov
- IRS: Instructions for Form 706 (Rev. 07/2026): $15,000,000 basic exclusion, Table A rate schedule, 9-month deadline irs.gov
- IRS: What's new, estate and gift tax (P.L. 119-21; annual exclusion) irs.gov
- IRS: Frequently asked questions on gift taxes irs.gov
- IRS Publication 525: gifts and inheritances; inherited pension or IRA irs.gov
- IRS FAQ: Gifts and inheritances (basis of inherited property) irs.gov
- Pennsylvania Department of Revenue: Inheritance tax (rates, discount, due date) pa.gov
- New Jersey Division of Taxation: Inheritance and estate tax rates nj.gov
- New Jersey Division of Taxation: Inheritance tax beneficiary classes nj.gov
- New Jersey Division of Taxation: Inheritance and estate tax (estate tax ended January 1, 2018) nj.gov
- Kentucky Department of Revenue: Inheritance and estate tax revenue.ky.gov
- Kentucky Department of Revenue: A Guide to Kentucky Inheritance and Estate Taxes (92F101), rate chart revenue.ky.gov
- Md. Code, Tax-General § 7-203: inheritance tax exemptions mgaleg.maryland.gov
- Md. Code, Tax-General § 7-204: inheritance tax rate mgaleg.maryland.gov
- Md. Code, Tax-General § 7-309: estate tax exclusion amount and computation mgaleg.maryland.gov
- Iowa Department of Revenue: Introduction to Iowa inheritance tax (repealed for deaths on or after January 1, 2025) revenue.iowa.gov
- Nebraska Department of Revenue: Inheritance tax reports (county inheritance tax) revenue.nebraska.gov
- Conn. Gen. Stat. § 12-391: estate tax rate and $15 million cap cga.ct.gov
- D.C. Code § 47-3702: estate tax rates code.dccouncil.gov
- D.C. Office of Tax and Revenue: Estate tax filing thresholds and due date otr.cfo.dc.gov
- Hawaii Department of Taxation: Instructions for Form M-6 (Rev. 2025), exclusion and tax rate schedule files.hawaii.gov
- Illinois Attorney General: Estate taxes illinoisattorneygeneral.gov
- Illinois Attorney General: Estate tax fact sheet ($4,000,000 exclusion; examples) illinoisattorneygeneral.gov
- Maine Revenue Services: Estate tax (706ME), 2026 exclusion and rates maine.gov
- Minn. Stat. § 291.03: estate tax rates revisor.mn.gov
- Minn. Stat. § 291.016: Minnesota taxable estate and exclusion amount revisor.mn.gov
- New York State Department of Taxation and Finance: Estate tax (2026 basic exclusion amount) tax.ny.gov
- N.Y. Tax Law § 952: rate table and the 105% rule nysenate.gov
- Oregon Department of Revenue: Estate transfer tax (filing threshold, due date) oregon.gov
- Oregon Department of Revenue: Form OR-706 instructions (2025), Part 6 tax table oregon.gov
- Vermont Department of Taxes: Estate tax (2026 filing threshold change) tax.vermont.gov
- 32 V.S.A. § 7442a: Vermont estate tax rate legislature.vermont.gov
- Washington Department of Revenue: Estate tax (2026 exclusion amounts) dor.wa.gov
- Washington Department of Revenue: Estate tax tables (Table W by date of death) dor.wa.gov
- Mass. Gen. Laws c. 65C, § 2A: the $2,000,000 line and the $99,600 credit (Trial Court Law Libraries copy) Massachusetts Trial Court Law Libraries (mass.gov)
- Massachusetts estate tax guide: Table B, filing and the 9-month due date (updated April 23, 2026) Massachusetts Department of Revenue
- Advisory ADV 2025-27: estate tax credit $87,940 and threshold $1,838,056 for deaths in 2026 (December 30, 2025) Rhode Island Division of Taxation
- Form RI-706: computation, $60,000 exclusion, tax computation schedule and credit chart Rhode Island Division of Taxation
- Rhode Island estate tax: filing and the 9-month due date Rhode Island Division of Taxation
- 280-RICR-20-35-1: Rhode Island estate tax regulation Rhode Island Department of State
- Unicameral Update: "Inheritance tax cut approved" (LB310, February 11, 2022) Nebraska Legislature
- Unicameral Update: inheritance tax bills after LB310 (2025 and 2026 sessions) Nebraska Legislature
- Unicameral Update: inheritance tax bills after LB310 (2025 and 2026 sessions) Nebraska Legislature
- Unicameral Update: inheritance tax bills after LB310 (2025 and 2026 sessions) Nebraska Legislature
- Unicameral Update: inheritance tax bills after LB310 (2025 and 2026 sessions) Nebraska Legislature
- Form PCIT: county inheritance tax report, classes of relatives Nebraska Department of Revenue
- Form ECIT: estate county inheritance tax report Nebraska Department of Revenue
- Notice of Oct. 1, 2025 Tax Changes: exclusion $4,988,400 for deaths in 2026 D.C. Office of Tax and Revenue
- 2026 Form D-76 instructions: estate tax computation worksheet for deaths on or after January 1, 2026 D.C. Office of Tax and Revenue
Related
This page explains the law in general terms. It is not legal advice about your situation. Justice is not a law firm and is not affiliated with any court or government agency.