How Much Are Estate & Inheritance Taxes in Maryland?
Estimate federal estate tax, state estate tax, and inheritance tax for an estate or trust. See which taxes apply in your state and how much beneficiaries may owe.
Frequently Asked Questions
Maryland imposes both an estate tax and an inheritance tax.Md. Tax-Gen. § 7-309Verified Jul 13, 2026 The estate tax applies to the total estate before distribution, while the inheritance tax applies to amounts received by individual beneficiaries based on their relationship to the deceased.
The Maryland estate tax exemption is $5 million (2026).Md. Tax-Gen. § 7-309Verified Jul 13, 2026 Estates below this threshold owe no state estate tax. This exemption is a fixed amount set by statute. Taxable estates face graduated rates up to 16%.
Maryland groups beneficiaries into classes with different tax rates.Md. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Jul 13, 2026 Fully exempt: spouse, child, stepchild, lineal descendant of a child (grandchild, great-grandchild), parent, stepparent, grandparent, sibling, spouse of a child or of a child’s lineal descendant, registered domestic partner, qualifying 501(c)(3) charity. Non-exempt beneficiaries pay graduated rates based on their class, with rates reaching up to 10% for all others (nieces, nephews, aunts, uncles, cousins, friends, unrelated). The filing deadline is 9 months after death.
The federal estate tax exemption is $15 million per person (2026), with a top rate of 40%. Married couples can effectively shield $30 million using portability of the unused spousal exemption. The One Big Beautiful Bill Act (P.L. 119-21 §70106) permanently set this exemption starting in 2026, indexed for inflation.
Death taxes (estate and inheritance taxes) are separate from probate costs. Probate costs include attorney fees, executor fees, court filing fees, and publication costs. Death taxes are owed to the state or federal government on the value of the estate or inheritance. Both can apply to the same estate. Use the Maryland probate calculator to estimate probate costs separately.
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