How Much Are Estate & Inheritance Taxes in Maryland?
Maryland levies an estate taxMd. Tax-Gen. § 7-309Verified Sep 15, 2026View source above $5,000,000Md. Tax-Gen. § 7-309Verified Sep 15, 2026View source (top rate 16%Md. Tax-Gen. § 7-309Verified Sep 15, 2026View source) and an inheritance taxMd. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Sep 15, 2026View source on beneficiaries; the federal estate tax applies above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
Yes, two. Maryland imposes an estate taxMd. Tax-Gen. § 7-309Verified Sep 15, 2026View source on the estate above $5,000,000Md. Tax-Gen. § 7-309Verified Sep 15, 2026View source before anything is distributed, and an inheritance taxMd. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Sep 15, 2026View source on what each beneficiary receives, at a rate set by the relationship to the decedent. Both can reach the same estate.
The Maryland estate tax exemption is $5,000,000Md. Tax-Gen. § 7-309Verified Sep 15, 2026View source; an estate below it owes no state estate tax. The exemption is a fixed amount set by statuteMd. Tax-Gen. § 7-309Verified Sep 15, 2026View source. A taxable estate faces graduated rates up to 16%Md. Tax-Gen. § 7-309Verified Sep 15, 2026View source.
Maryland groups beneficiaries into classes by their relationship to the decedent, each with its own exemption and rate. 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) charityMd. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Sep 15, 2026View source. The rate climbs with distance from the decedent, up to 10%Md. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Sep 15, 2026View source for an unrelated beneficiary. The Maryland inheritance tax guide walks through the classes.
The federal estate tax exemption is $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, with a top rate of 40%26 USC 2001(c)Verified Sep 15, 2026View source. A married couple can shield26 USC 2010(c)(5)Verified Sep 15, 2026View source $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source by electing portability of the first spouse's unused exemption on a timely estate tax return. The One Big Beautiful Bill Act (P.L. 119-21 §70106) set the exemption permanently from 2026, indexed for inflation.
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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 in Maryland
Free Maryland forms for planning an estate or settling one: a will, trust, powers of attorney, TOD deed, and the probate forms an executor files.
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
In Maryland, the petition asks the Register of Wills to appoint the personal representative, whose authority is proved by Letters of Administration; an informal (registrar) track is availableMd. Est. & Trusts § 5-301 et seq. (administrative probate; Register of Wills appointment)Verified Sep 8, 2026View source.
Notice to Creditors
In Maryland, the notice to creditors is published for 3Md. Code, Est. & Trusts §§ 7-103, 7-103.1, 8-103, 8-104, 8-105, 8-107Verified Sep 15, 2026View source weeks in a local newspaper, and creditors have 6 monthsMd. Est. & Trusts § 8-103Verified Sep 8, 2026View source from the date of death to present claims.
Renunciation of Executor
In Maryland, a person named as personal representative may renounce the right to serveMd. Code, Est. & Trusts § 5-105(c)Verified Sep 23, 2026View source before anyone is appointed.
Estate Inventory
In Maryland, the personal representative files the estate inventory within 90 daysET §§ 7-201, 7-202, 7-203Verified Sep 15, 2026View source of appointment.
Estate Closing
In Maryland, the personal representative is discharged by court orderMd. Est. & Trusts §§ 7-501, 7-502, 6-303Verified Sep 15, 2026View source, and a final accounting is required.
Letter of Instruction
Prepare the letter a bank or insurer requests during estate settlement, addressed to its claims department.
Last Will and Testament
In Maryland, a will is signed before 2Md. Est. & Trusts § 4-102Verified Sep 16, 2026View source witnesses, and it is self-proved when properly executedMd. Est. & Trusts § 4-102Verified Sep 16, 2026View source.
Tools for Planning and Settling an Estate in Maryland
Free calculators and checklists for planning or settling an estate in Maryland: will and trust costs, probate, executor pay, and inheritance taxes.
What Taxes Apply to My Inheritance?
In Maryland, an inheritance is subject to a state inheritance taxMd. Tax-Gen. §§ 7-202, 7-203, 7-204Verified Sep 15, 2026View source at a rate set by the beneficiary's relationship; probate assets arrive when the estate closes, 6 months to 9 months for a simple estate.
How Does Step-Up in Basis Work?
Inherited assets in Maryland take a basis reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source, and the gain on a later sale faces ordinary income tax at the state's regular rates, plus a 2% surtax on the whole gain once federal AGI exceeds $350,000Md. Code, Tax-General § 10-105(a) (graduated rates; (a)(3)-(4) 2% net-capital-gain surtax); § 10-101(e), (g) (definitions of "federal adjusted gross income" and "individual"); § 10-102 (imposition)Verified Sep 15, 2026View source.
What Are the Estate Laws in My State?
Probate on a $500,000 estate in Maryland costs an estimated $33,231Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source and takes 6 months to 9 months for a simple estate, with attorney fees of typically 2.1%Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source to 3.3%Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source of the estate. Estates under $50,000Md. Est. & Trusts § 5-601Verified Sep 8, 2026View source can use a small-estate procedure instead.
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 Does Probate Cost?
Probate on a $500,000 estate in Maryland costs an estimated $33,231Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source. Attorney fees run 2.1%Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source to 3.3%Md. Est. & Trusts § 7-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source of the estate under a reasonable-compensation standard.
Who Inherits Without a Will?
Without a will in Maryland, descendants divide what passes to them per stirpesMd. Code, Est. & Trusts § 3-103Verified Sep 10, 2026View source, and an heir must survive the decedent by 720 hoursMd. Code, Est. & Trusts § 3-110(a)Verified Sep 10, 2026View source to inherit.
How Many Death Certificates Do I Need?
In Maryland, certified death certificates come from the Maryland Department of Health - Division of Vital RecordsMaryland Department of Health - Division of Vital RecordsVerified Oct 15, 2026View source; the first copy costs $10Maryland Department of Health - Division of Vital RecordsVerified Oct 15, 2026View source, additional copies $12Maryland Department of Health - Division of Vital RecordsVerified Oct 15, 2026View source each.
Do I Need Probate?
In Maryland, estates valued at $50,000Md. Est. & Trusts § 5-601Verified Sep 8, 2026View source or less qualify for the Petition for Administration of Small EstateMd. Est. & Trusts § 5-601Verified Sep 8, 2026View source, a court procedure short of full probate.
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Maryland Estate Planning Resources
In-depth guides covering Maryland probate laws, trust requirements, and estate planning strategies.