Inheritance Tax Calculator
Estimate federal estate tax and state inheritance tax on inherited assets.
Estate Details
Beneficiary & State
Total Tax
$0
Effective Rate
0%
Net Inheritance
$2,850,000
Tax Breakdown
Estimates only. Tax laws change frequently. Consult an estate planning attorney for specific guidance.
Inheritance Tax vs Estate Tax — Key Difference
The federal government levies an estate tax on the deceased's estate before distribution. Some states charge an inheritance tax on the beneficiary after receiving assets. Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) have inheritance taxes, and Maryland uniquely has both. The federal estate tax exemption in 2026 is $13.99 million per person — only estates exceeding this threshold owe federal tax.
States With Inheritance or Estate Tax
| State | Tax Type | Exemption | Top Rate | Spouse Exempt? |
|---|---|---|---|---|
| Maryland | Both | $5M (estate) / $0 (inheritance) | 16% / 10% | Yes |
| New Jersey | Inheritance | Varies by class | 16% | Yes |
| Pennsylvania | Inheritance | None | 4.5–15% | Yes |
| Kentucky | Inheritance | $1,000 (Class B/C) | 4–16% | Yes |
| Nebraska | Inheritance | $10K–$100K | 1–18% | Yes |
| Massachusetts | Estate | $2M | 16% | Yes |
| Oregon | Estate | $1M | 16% | Yes |
| Washington | Estate | $2.19M | 20% | Yes |
Federal Estate Tax Brackets 2026
Applies only to taxable estates exceeding the $13.99M exemption:
| Taxable Amount | Rate |
|---|---|
| $0 – $10,000 | 18% |
| $10,001 – $20,000 | 20% |
| $20,001 – $40,000 | 22% |
| $40,001 – $60,000 | 24% |
| $60,001 – $80,000 | 26% |
| $80,001 – $1,000,000 | 28–39% |
| Over $1,000,000 | 40% |
Frequently Asked Questions
Do I have to pay tax on inherited money?
Most Americans pay zero inheritance tax. The federal estate tax only applies to estates over $13.99 million (2026), and only 6 states have inheritance taxes. Spouses are exempt everywhere. Children and direct descendants are exempt in most inheritance tax states. The estate pays the estate tax before you receive anything — you don't get a tax bill.
Is inherited property taxed differently?
Inherited property gets a "stepped-up" tax basis to its fair market value at the date of death. If your parent bought a house for $100,000 and it's worth $400,000 when they pass, your basis is $400,000 — you owe zero capital gains if you sell near that price. This step-up is one of the most valuable tax benefits in the entire tax code.
See also: Estate & Gift Tax Calculator and Estate Planning Checklist.