Inheritance Tax Calculator
Quick estimate of federal estate tax + state inheritance tax impact. Note: these are different taxes. Federal estate tax is paid by the estate (not you). State inheritance tax in 6 states is paid by the recipient.
Federal estate tax (the big one most don't owe)
Federal estate tax exemption for 2026 is $15M per individual / $30M per married couple, permanent (made so by the One Big Beautiful Bill Act, July 2025; indexed for inflation from 2027). Above the exemption, the tax rate is 40% on the excess. Only ~0.1% of US estates owe any federal estate tax at the $15M threshold.
State inheritance tax (exists in only 6 states)
As of 2026, these 6 states have inheritance tax (applied to the beneficiary, based on relationship):
- Kentucky: spouse/lineal descendants exempt; siblings/parents face 4-16%; others 6-16%.
- Maryland: spouse/lineal descendants exempt; others 10%.
- Nebraska: spouse exempt; children 1%; siblings 11%; others 15%.
- New Jersey: spouse/lineal descendants exempt; siblings 11-16%; others 15-16%.
- Pennsylvania: spouse exempt; lineal descendants 4.5%; siblings 12%; others 15%.
Inherited IRA tax is different. The inherited IRA isn't taxed at inheritance — it's taxed as income when you distribute from it (over the 10-year window). That often ends up being the biggest tax cost. Planning distributions across low-income years reduces lifetime tax meaningfully.
Get your inheritance tax analyzed
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