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Inheritance tax by state: which states charge it, and how much

Only five states charge an inheritance tax in 2026: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. The rate depends on your relationship to the person who died, not the size of the estate. Spouses are always exempt. A separate group of states charges an estate tax instead, paid by the estate before you inherit anything.

By the Omliva team · Published September 28, 2026 · Updated September 28, 2026 · Sources checked September 28, 2026

Every figure on this page carries a source and the date we checked it. Read how we work.

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Omliva organizes practical information. This guide is general information for the United States, not legal, tax, financial or medical advice.

A short note before you start

This guide is general information for the United States, not legal, tax, financial or medical advice. Inheritance tax rules are set state by state and change over time, so confirm the current rate and exemption with the state's own department of revenue before you rely on a number here.

What is inheritance tax, and how is it different from estate tax?

Inheritance tax is charged to the person who receives money or property from someone who died, based on how closely related you were. Estate tax is charged to the estate itself, before distribution, based on the total value of everything the person owned. You can owe one, both or neither, depending on where the person lived and who you are to them.

The federal government only has an estate tax; it has never had a federal inheritance tax2. At the state level the two taxes are separate laws:

  • Estate tax: paid by the estate itself, before distribution. Twelve states and DC currently charge one: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington1.
  • Inheritance tax: paid by the person who inherits, based on the amount received and their relationship to the deceased. Only five states charge one: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania1.

Because Maryland charges both, an heir there can see the estate pay an estate tax and then owe inheritance tax personally on what they receive1.

This guide covers the state-level inheritance tax some heirs owe directly. For which types of inherited money carry any tax at all, see inheriting money and taxes.

Two things decide whether inheritance tax applies to you: the deceased person's domicile at death, and in some states the location of real estate they owned. Your own residence generally does not matter.

How do the 12 estate-tax states' exemption amounts compare in 2026?

Unlike the five inheritance-tax states, each estate-tax state and DC sets one dollar threshold for the whole estate, taxed before an heir sees it. Thresholds run from $1,000,000 in Oregon to $13,990,000 in Connecticut.

State 2026 exemption threshold Rate range (source)
Oregon $1,000,000 10-16% (Tax Foundation)
Rhode Island $1,838,056 Up to 16% (RI Division of Taxation)
Massachusetts $2,000,000 7.2-16% (Mass. DOR)
Minnesota $3,000,000 13-16% (Tax Foundation)
Washington $3,000,000 from July 1, 2026 ($3,076,000 earlier) 10-35% above $9M (WA DOR)
Illinois $4,000,000 8-16% (Illinois AG)
District of Columbia $4,988,400 11.2-16% (Tax Foundation)
Maryland $5,000,000 0.8-16% (Tax Foundation)
Vermont $5,000,000 16% flat (VT Dept. of Taxes)
Maine $7,160,000 8-12% (Tax Foundation)
New York $7,350,000 Up to 16% (NY DTF)
Hawaii $10,000,000 10-20% (Tax Foundation)
Connecticut $13,990,000 12% flat (Tax Foundation)

All figures checked 2026-09-24; full citations are in Sources below.

Washington's threshold drops mid-year in 2026, so confirm the exact date of death before using it.

Which states have an inheritance tax in 2026?

As of 2026, five states charge an inheritance tax. All five exempt spouses completely, and most exempt children, parents and other close relatives, while taxing nieces, nephews, cousins and unrelated heirs.

State Fully exempt Closest taxed relatives Everyone else
Kentucky Spouse, parent, child, grandchild, sibling, half-sibling (Class A) Nieces, nephews, aunts, uncles, in-laws, great-grandchildren: $1,000 exemption, 4% to 16% (Class B) Cousins and unrelated heirs: $500 exemption, 6% to 16% (Class C)3
Maryland Spouse, child and stepchild, parent, grandparent, sibling, spouse of a child, registered domestic partner No middle tier Everyone else: flat 10% of the value received (Register of Wills, checked 2026-09-20)10
Nebraska Spouse Parents, siblings, children, grandparents and their spouses or descendants: $100,000 exemption, 1% above it (Class 1) Aunts, uncles, nieces, nephews and their spouses or descendants: $40,000 exemption, 11% above it (Class 2); all others: $25,000 exemption, 15% above it (Class 3)8
New Jersey Spouse, civil union or domestic partner, parent, grandparent, child, stepchild, grandchild (Class A) Siblings and a child's spouse or surviving spouse: $25,000 exemption, then graduated rates from 11% to 16% (Class C)6 Nieces, nephews, friends, cousins and other unrelated heirs: 15% on the first $700,000, 16% above that (Class D); qualified charities are exempt (Class E)6
Pennsylvania Spouse; a child aged 21 or younger inheriting from a parent Direct descendants and lineal heirs (children over 21, grandchildren, parents): 4.5% Siblings: 12%; everyone else: 15%5

Kentucky and New Jersey have the highest top marginal rates, each reaching 16%1. Pennsylvania has no dollar exemption for taxable relationships, so even a small inheritance to a direct descendant is taxed from the first dollar5.

Does it matter where I live, or where the person who died lived?

What matters is where the deceased person was domiciled, not where you live. If your parent lived and died in Pennsylvania and you live in Texas, you can still owe Pennsylvania inheritance tax. Real estate in an inheritance-tax state can also trigger the tax for an out-of-state heir12. If unsure, ask a probate attorney licensed in that state.

How does inheritance tax actually work?

Each of the five states groups beneficiaries into classes by relationship, gives each class its own exemption, then taxes anything above that at rising rates. The tax is per beneficiary, so two heirs of the same estate can owe very different amounts.

The general steps:

  1. Identify the deceased person's state of domicile at death, since that state's law controls whether inheritance tax applies at all.
  2. Determine each beneficiary's relationship class under that state's rules (see the table above).
  3. Value what each beneficiary receives, generally fair market value on the date of death, minus debts and expenses charged against that share.
  4. Apply the class exemption, then the class's tax rate or brackets to the amount above it.
  5. File the state's return and pay, usually within nine months, though the exact deadline varies by state.
  6. Get a tax waiver or release, if required, before banks will release accounts or retitle property to the beneficiary.

Executors usually handle the filing, but legal liability generally falls on the beneficiary who received the property. The executor checklist covers where inheritance tax fits into the broader timeline of settling an estate.

A state death tax paid can also reduce a federal estate tax bill: Schedule F of Form 706 deducts it, with no dollar limit, once claimed within 4 years of filing2. This only matters for estates large enough to owe federal estate tax; see do you pay taxes on inheritance.

Is there an inheritance tax calculator?

None of the five states publishes a live calculator, but each publishes the worksheet its own return uses, and the arithmetic is simple enough to do by hand once you know the beneficiary's class:

  1. Look up the beneficiary's class and exemption in the table above.
  2. Subtract the exemption from the fair market value received.
  3. Multiply the remainder by that class's rate or bracket.
  4. Subtract any early-payment discount if paying within the window.

For example, a Kentucky niece inheriting $50,000 (Class B) would subtract the $1,000 exemption, leaving $49,000 taxed at Class B's graduated rate3. Treat any third-party calculator as a rough estimate, and confirm the final number against the state's own instructions or a professional.

Do any states offer a discount for paying early?

Kentucky and Pennsylvania offer one; Maryland, Nebraska and New Jersey do not, though each still has its own filing clock. Kentucky's discount is 5% if paid within 9 months of death3, and Pennsylvania's is 5% if paid within 3 months5. New Jersey instead charges 10% annual interest on anything unpaid after 8 months28. See the table below for each state's exact deadline.

When is each state's inheritance tax return actually due?

State Return and payment due Early-payment discount
Kentucky 18 months after death 5% if paid within 9 months (Kentucky Department of Revenue)
Maryland No fixed date; due when the estate account shows the property distributed None (Maryland Register of Wills)
Nebraska 12 months after death None (Nebraska Revised Statutes §77-2113)
New Jersey 8 months after death None (New Jersey Division of Taxation)
Pennsylvania Delinquent, with interest, 9 months after death 5% if paid within 3 months (Pennsylvania Department of Revenue)

All figures in this table checked 2026-09-28; full citations are in Sources below.

A step-by-step checklist for figuring out what an estate may owe

Work through this for any estate that might touch Kentucky, Maryland, Nebraska, New Jersey or Pennsylvania. If you don't know which court has jurisdiction, our probate courts by state guide links to each state's self-help page.

What should go in a family guide about this?

A family guide should record where the person who made it is domiciled, since that single fact determines whether inheritance tax applies, along with major beneficiaries, their relationship to the person, and any real estate held outside the home state. Recording this while the person can confirm it saves the family from reconstructing it under time pressure later. Note where the will and estate documents are kept, linked to a letter of instruction for the executor and the estate planning glossary for terms like "domicile" and "beneficiary class."

What mistakes do people commonly make about inheritance tax?

  • Assuming every state has one. Only five do1.
  • Confusing it with federal estate tax. The federal threshold is $15,000,000 for 2026; state inheritance tax has no such bar2.
  • Assuming your own home state controls. It is the deceased person's domicile that matters, and sometimes the location of real estate.
  • Forgetting Iowa's repeal. Iowa repealed its inheritance tax for deaths on or after January 1, 202512.
  • Skipping the tax waiver. Some states require one before a bank will release funds, even when the tax itself is exempt.
  • Missing the early-payment discount. In Kentucky and Pennsylvania, paying within the discount window shaves 5% off the bill3,5.

When to get professional help

Bring in a probate attorney or CPA licensed in the deceased person's state whenever real estate sits in more than one state, a relationship class is unclear, both taxes might apply, or you are unsure which state's law controls. A professional can confirm current rates, discount windows and waiver rules, since these change at the state level.

Frequently asked questions

Which states have an inheritance tax in 2026?

Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. No other state charges a tax on the person who inherits, though twelve states and DC charge a separate estate tax on the estate itself1.

How does inheritance tax work?

The state sorts each beneficiary into a class by relationship, applies a dollar exemption for that class, then taxes the amount above it at that class's rate. It is calculated per beneficiary, so a spouse might owe nothing while a distant cousin on the same estate owes a real amount.

Is there a federal inheritance tax?

No. The federal government only has an estate tax, applying to the estate itself and only above $15,000,000 for deaths in 20262. No federal tax is charged directly to the person who inherits.

Is there an official inheritance tax calculator?

No state publishes a live online calculator. Each publishes the worksheet used on its own return, and the calculation is a straightforward exemption-then-rate formula once you know the beneficiary's class.

Do spouses ever pay inheritance tax?

No. All five inheritance-tax states fully exempt a surviving spouse regardless of how much they inherit1.

What happened to Iowa's inheritance tax?

Iowa repealed it completely. For any death on or after January 1, 2025, no heir owes Iowa inheritance tax regardless of relationship12.

Can an estate owe both estate tax and inheritance tax?

Only in Maryland, the one state that charges both on the same estate: an estate tax paid by the estate and a separate inheritance tax paid by certain beneficiaries1.

Does the District of Columbia have an inheritance tax?

Not in practice. DC's tax office confirms its inheritance tax law only applies to people who died before April 1, 198731. What DC has instead is an estate tax, the same kind the twelve states above charge; see the exemption table above for its current threshold.

Do I owe inheritance tax on life insurance?

Generally no. All five states exempt life insurance paid to a named beneficiary rather than the estate (checked 2026-09-24)5,3,19,6,11. The exemption is lost if the estate itself is named beneficiary.

Do I owe inheritance tax on an inherited IRA or 401(k)?

It depends on the state, and in Pennsylvania also on age at death: a traditional IRA or 401(k) is exempt if the owner died before 59½, taxed if later; a Roth IRA is taxed either way5. See rules for an inherited IRA for the federal question.

Can I deduct state inheritance tax on my federal tax return?

Not on a personal return. If the estate owes federal estate tax, Schedule F of Form 706 lets it deduct state death taxes paid, with no dollar limit2. For everyone else, inheritance tax is not deductible federally.

Sources

  1. Tax Foundation, taxfoundation.org: Estate and Inheritance Taxes by State Checked 2026-09-20
  2. Internal Revenue Service, irs.gov: Estate tax Checked 2026-09-17
  3. Kentucky Department of Revenue, revenue.ky.gov: Inheritance Tax Checked 2026-09-20
  4. Kentucky Department of Revenue, revenue.ky.gov: A Guide to Kentucky Inheritance and Estate Taxes Checked 2026-09-20
  5. Pennsylvania Department of Revenue, pa.gov: Inheritance Tax Checked 2026-09-20
  6. New Jersey Division of Taxation, nj.gov: Inheritance and Estate Tax Branch Checked 2026-09-20
  7. New Jersey Division of Taxation, nj.gov: Definitions (beneficiary classes) Checked 2026-09-20
  8. Nebraska Revised Statutes §77-2004, nebraskalegislature.gov: Inheritance tax; rate; property passing to immediate relatives Checked 2026-09-20
  9. Nebraska Revised Statutes §77-2005, nebraskalegislature.gov: Inheritance tax; rate; transfer to remote relatives; exemption Checked 2026-09-20
  10. Maryland Code, law.justia.com: Tax-General Article §7-203, Exemptions Checked 2026-09-20
  11. Maryland Register of Wills, registers.maryland.gov: Inheritance Tax Checked 2026-09-20
  12. Nolo, nolo.com: Iowa Inheritance Tax Checked 2026-09-20
  13. Nolo, nolo.com: State-by-State Guide to Inheritance Taxes Checked 2026-09-20
  14. Internal Revenue Service, irs.gov: Instructions for Form 706 Checked 2026-09-24
  15. Pennsylvania Department of Revenue, revenue-pa.custhelp.com: Is life insurance subject to PA inheritance tax? Checked 2026-09-24
  16. Pennsylvania Department of Revenue, revenue-pa.custhelp.com: Is a decedent's IRA or 401(k) subject to PA inheritance tax if the individual dies before age 59 1/2? Checked 2026-09-24
  17. Justia, law.justia.com: Kentucky Revised Statutes Chapter 140, Inheritance and Estate Taxes Checked 2026-09-24
  18. Nebraska Legislature, nebraskalegislature.gov: Revised Statute §77-2001 Checked 2026-09-24
  19. Nebraska Legislature, nebraskalegislature.gov: Revised Statute §77-2002 Checked 2026-09-24
  20. New Jersey Division of Taxation, nj.gov: General Information: Inheritance and Estate Tax Checked 2026-09-24
  21. New Jersey Division of Taxation, nj.gov: Inheritance Tax Rates Checked 2026-09-24
  22. Washington State Department of Revenue, dor.wa.gov: Estate tax Checked 2026-09-24
  23. New York State Department of Taxation and Finance, tax.ny.gov: Estate tax Checked 2026-09-24
  24. Massachusetts Department of Revenue, mass.gov: AP 500: Estate and Inheritance Tax Checked 2026-09-24
  25. Illinois Attorney General, illinoisattorneygeneral.gov: Important Notice Regarding Illinois Estate Tax and Fact Sheet Checked 2026-09-24
  26. Rhode Island Division of Taxation, tax.ri.gov: Advisory 2025-27: Estate Tax Updates Checked 2026-09-24
  27. Vermont Department of Taxes, tax.vermont.gov: Estate Tax Checked 2026-09-24
  28. New Jersey Division of Taxation, nj.gov: Inheritance Tax Filing Requirements Checked 2026-09-28
  29. Nebraska Legislature, nebraskalegislature.gov: Revised Statute §77-2113 Checked 2026-09-28
  30. Maryland Register of Wills, registers.maryland.gov: Deadlines and Time Limitations for Filing Checked 2026-09-28
  31. DC Office of Tax and Revenue, otr.cfo.dc.gov: DC Estate, Inheritance and Fiduciary Tax Information Checked 2026-09-28