Tools for Heirs and Beneficiaries in Texas

Texas levies no estate or inheritance tax; only the federal estate tax applies above $15,000,000.

6 tools for Texas

Who Inherits Without a Will?

Texas is a community property state, so the surviving spouse already owns half of what the couple acquired during the marriage. Without a will in Texas, descendants divide what passes to them per capita with representation, and an heir must survive the decedent by 120 hours to inherit.

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How Much Are Estate & Inheritance Taxes?

Texas levies no estate or inheritance tax; only the federal estate tax applies above $15,000,000.

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What Taxes Apply to My Inheritance?

Texas imposes no inheritance or estate tax; probate assets arrive when the estate closes, 4 months to 6 months for a simple estate.

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How Does Step-Up in Basis Work?

Inherited assets in Texas take a basis reset to fair market value on the date of death, and the gain on a later sale faces no state capital gains tax.

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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.

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Do I Have to File Tax Returns for Someone Who Died?

Texas has no state income tax, so only the federal final Form 1040 is due for the decedent; a federal estate tax return (Form 706) is required only for estates above $15,000,000.

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No. Texas imposes no state estate tax and no inheritance tax. Only the federal estate tax applies, on an estate above $15,000,000, an exemption the One Big Beautiful Bill Act (P.L. 119-21 §70106) set permanently from 2026 and indexes for inflation.

Not on the inheritance itself: Texas taxes neither the estate nor the beneficiary, and the IRS does not treat an inheritance as income. What an heir can owe is income tax on withdrawals from an inherited retirement account, and capital gains on a later sale of inherited property, where the basis is reset to fair market value on the date of death and the gain faces no state capital gains tax.

No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Texas does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.

When someone dies, the cost basis of the property they leave is reset to its fair market value on the date of death under IRC § 1014. A later sale is taxed on the gain above that stepped-up basis, not above what the original owner paid, so the appreciation of the owner's lifetime is never taxed. The rule is federal and applies in Texas as in every state.

Texas intestacy law decides. As a community property state, Texas distinguishes community property (acquired during the marriage) from separate property (owned before it, or received as a gift or inheritance), and the surviving spouse's share differs for each. The estate passes to the closest surviving relatives, in most cases the spouse and children first, then in order: Parents (and siblings when only one parent survives); Siblings and their descendants; Paternal and maternal kindred (two moieties).

Tools for Heirs and Beneficiaries in Texas

Estate taxes are paid by the estate before anything is distributed; inheritance taxes are paid by the person who receives the property. In 2026 the federal estate tax reaches only estates above $15 million per person, and there is no federal inheritance tax. 12 states plus the District of Columbia levy their own estate tax at lower thresholds, and 5 states levy an inheritance tax whose rate depends on the beneficiary's relationship to the person who died.

Beneficiaries in Texas owe no state tax on what they receive; inherited assets take a basis reset to fair market value on the date of death, and the gain on a later sale faces no state capital gains tax. Probate assets arrive when the estate closes: a simple estate closes in 4 months to 6 months.

SimplyTrust Editorial·Updated September 15, 2026

Legal Sources

Data sourced from Texas statutes and official state code. How we research.