How Much Are Estate & Inheritance Taxes?
The federal estate tax reaches only estates above the federal exemption, some states levy their own estate tax at lower thresholds, and a few tax the inheritance in the beneficiary's hands at rates set by the relationship to the person who died. Which taxes apply depends on the state and the size of the estate.
The federal estate tax exemption is $15 million per person in 2026, permanently set by the One Big Beautiful Bill Act (P.L. 119-21 §70106). Married couples can effectively shield $30 million using portability. Estates below this threshold are not subject to federal estate tax. The exemption is indexed to inflation for future years.
Estate tax is paid by the estate itself before assets are distributed to heirs. It is based on the total estate value. Inheritance tax is paid by individual beneficiaries on what they receive, with rates varying by their relationship to the deceased. Some states have estate tax, some have inheritance tax, and Maryland has both.
12 states plus Washington DC have estate taxes: Connecticut, Washington DC, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Exemptions range from $1 million (Oregon) to $15 million (Connecticut). Top rates run from 12% to 20%.
5 states have inheritance taxes: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa repealed its inheritance tax effective 2025. Rates and exemptions vary by beneficiary relationship, with spouses typically fully exempt and distant relatives or unrelated beneficiaries paying the highest rates.
Gift tax and estate tax work together. Gifts above the annual exclusion ($19,000 per recipient in 2026) must be reported on Form 709 even when no tax is owed. The IRS uses adjusted taxable gifts made during life in the computation of estate tax at death (IRS Estate Tax FAQ), so lifetime gifts reduce what the estate can shield from tax. Recipients of a gift generally don't owe federal income tax on what they receive. The gift tax calculator shows what one gift uses of the annual exclusion and the lifetime exemption, and whether a return is due.
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Inheritance
Inheriting assets brings responsibility. How to manage, protect, and plan for inherited wealth, including tax implications and trust options.
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Death of a Parent
A step-by-step guide to what happens after a parent dies: the documents to find, the certificates to order, and whether probate is even required.
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Loss of a Spouse
What a surviving spouse needs to do: death certificates, survivor benefits, whether probate is even required, and the tax election that expires.
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Named as Executor
What an executor actually does: getting appointed, notifying creditors, paying debts and taxes, and where personal liability starts.
Learn moreForms for Planning and Settling an Estate
Free state-specific forms to plan or settle an estate: a will, living trust, powers of attorney, TOD deed and every probate form. Prepare each form.
Affidavit of Death
Put a joint owner's or a transfer on death deed owner's death on the land records with the affidavit your state's statute names, laid out for recording.
IRS Form 56
Notify the IRS that you are the fiduciary of an estate, a trust or a person, or end a notice filed before, on the official form.
Digital Assets Recovery Letter
Prepare a letter requesting a deceased person's online accounts, points, and balances from the program that holds them.
Petition for Probate and Letters
Open probate and ask the court to appoint you and issue Letters Testamentary or Letters of Administration.
Notice to Creditors
Notify estate creditors and start the claim period — the published notice plus mailed copies for known creditors.
Renunciation of Executor
Decline an appointment as executor named in a will — the writing filed with the court before anyone is appointed.
Tools for Planning and Settling an Estate
Free calculators and checklists to plan or settle an estate in any state: will and trust costs, probate, executor pay and inheritance taxes. Run each tool.
What Taxes Apply to My Inheritance?
Inheritance tax by state, federal tax on inheritance, and timeline estimates for receiving money, property, or retirement assets.
How Does Step-Up in Basis Work?
Calculate the new cost basis on inherited assets under IRC § 1014 and project capital gains tax savings.
What Are the Estate Laws in My State?
See probate costs, will requirements, trust rules, and intestacy laws for your state.
When Do I Have to Withdraw an Inherited IRA?
See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.
How Much Do I Have to Withdraw From an Inherited IRA This Year?
The required minimum distribution on an inherited IRA, Roth IRA, or 401(k), from the prior year-end balance and the life expectancy table.
How Much Does Probate Cost?
Estimate attorney fees, executor fees, court costs, and timeline for probating an estate.
