Exploring the Absence of Inheritance Tax in DC
Discover why there’s no inheritance tax in D.C. and explore what this means for residents or property owners doing estate planning.
If you live in the District—or own real property here—you may wonder how inheritance tax in DC works. The short answer: it does because there’s no modern inheritance tax in the District. (Although there is a separate estate tax with its own thresholds and rules.)
No. DC used to impose an inheritance tax (a tax on the recipient of an inheritance). That system is now largely a historical footnote. The District requires inheritance-tax filings only for very old estates—those involving deaths on or before March 31, 1987. For anyone who passed after April 1, 1987, the modern inheritance tax no longer applies.
However, the District’s estate tax is very much current, with a 2025 exclusion of $4,873,200 and progressive brackets above that. A quick check of your asset picture—and where those assets are located—goes a long way toward avoiding surprises for your heirs.
Today’s Reality: No Inheritance Tax, But an Estate Tax
No inheritance tax in DC today. Heirs are not taxed simply for receiving an inheritance under current law. (Caveat: if you inherit property sited in a state that does have an inheritance tax—like nearby Maryland in certain cases—those rules can still bite.)
DC does impose an estate tax. That’s a tax on the estate itself, based on the size of the taxable estate at death.
For 2025, DC’s estate-tax exclusion amount is $4,873,200. Estates at or below that amount generally owe no DC estate tax; estates above it calculate tax using DC’s bracketed table (rates run roughly 11.2% up to 16% on amounts over the exclusion).
Filing timeline. The DC estate tax return (Form D-76/D-76EZ) is typically due within 10 months of death, with extensions available. Filing is electronic via MyTax.DC.gov.
(Further Reading: Learn about revocable trusts in DC versus Nevada.)