Inheritance Tax Calculator — State Rates 2024

Estimate state inheritance tax owed by beneficiaries on assets received. Rates often depend on relationship to the decedent — spouse, child, sibling, or unrelated heir.

Estimating tax on the whole estate before distribution?

This page models beneficiary-level inheritance tax by state and relationship. For federal estate tax on the gross estate, use the Estate Tax Calculator →

No Federal Inheritance Tax: The United States does not have a federal inheritance tax. Beneficiaries do not owe federal tax on inherited assets. Only 6 states currently impose inheritance tax on the recipient.

Inherited Asset Value ($)

State of Deceased

Relationship to Deceased

What is Inheritance Tax?

Inheritance tax is imposed on beneficiaries who receive assets from a decedent. Only a handful of U.S. states levy it (e.g., Pennsylvania, New Jersey, Iowa, Kentucky, Maryland, Nebraska). Rates and exemptions typically depend on the heir’s relationship — spouses and children often pay less or nothing; distant relatives pay more.

Use this page when a beneficiary needs to estimate tax on their specific bequest — cash, property, or investments — under a state inheritance tax regime. The heir pays the tax, not the estate as a whole.

Federal estate tax applies to the entire estate before distribution and uses a high exemption threshold. For gross-estate federal and state estate tax on the decedent’s total wealth, use the Estate Tax Calculator.

How the Inheritance Tax Calculator Works

Formula, assumptions, and calculation steps for this tax tool.

Formula Used

Tax = (Inherited Amount - Exemption Threshold) x Applicable Rate

Methodology

Subtracts any exemption threshold from the inherited amount, then applies the rate that depends on relationship to the deceased and jurisdiction.

Calculation Steps

Enter taxable amounts and any deductions or allowances.
Apply the relevant brackets, rates, or tax percentage.
Calculate gross tax, credits, or net amount where supported.
Show totals for planning and comparison.

Assumptions and Limits

Tax rules change by jurisdiction and year.
Local surcharges, credits, and filing status details may not be exhaustive.
Consult a tax professional for filing decisions.

Frequently Asked Questions

What is the difference between estate tax and inheritance tax?

Estate tax is paid by the estate of the deceased before assets are distributed — the estate pays, not the beneficiaries. Inheritance tax is paid by the beneficiary who receives the assets after distribution. Some states have one, both, or neither. The federal government has an estate tax but NO inheritance tax. Only 6 states have inheritance tax.

Is inherited money taxable as income?

Generally, no. Inherited assets are NOT subject to federal income tax. However, any income generated by inherited assets after you receive them IS taxable (interest, dividends, rent). Inherited retirement accounts (IRAs, 401ks) have special rules — distributions from inherited traditional IRAs are taxable as ordinary income. Inherited Roth IRAs are generally tax-free.

Do spouses pay inheritance tax?

In all 6 states with inheritance tax, surviving spouses are fully exempt. In most states, children and lineal descendants also receive a full exemption or a very high exemption threshold. The highest rates typically apply to distant relatives and non-relatives who inherit assets.

Which states have inheritance tax in 2024?

As of 2024: Iowa (phasing out completely by 2025 for deaths after Jan 1, 2025), Kentucky (0–16%), Maryland (0–10%), Nebraska (1–15%), New Jersey (0–16%), and Pennsylvania (0–15%). Note that Iowa's inheritance tax is being eliminated — check current law for recent deaths.

Real-World Applications

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Inherited Property Planning

Estimate the state inheritance tax on a home or investment property inherited from a non-parent relative to plan for the tax payment without needing to sell the asset.

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Estate Distribution Planning

Calculate the net inheritance amount for each beneficiary after state inheritance tax to ensure equitable distribution matching the testator's intent.

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IRA Inheritance Tax

Inherited IRAs are subject to income tax (not inheritance tax) on distributions — model the combined income and inheritance tax burden for large inherited retirement accounts.

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Gifting vs Bequest Analysis

Compare the tax cost of transferring assets as lifetime gifts (potentially subject to gift tax) vs bequests at death (potentially subject to estate and inheritance tax).

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Trust Structure Evaluation

Evaluate whether a trust structure reduces inheritance tax exposure for assets passed to non-lineal heirs in states with significant inheritance tax rates.

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International Inheritance

US beneficiaries receiving assets from a foreign estate may face both US income tax on income-producing assets and potentially foreign inheritance tax depending on treaty provisions.

Common Mistakes

Confusing inheritance tax and estate tax

Estate tax is paid by the estate before distribution (and applies at the federal level and in 12 states). Inheritance tax is paid by the beneficiary after receiving assets and only exists in 6 states.

Assuming spouses always pay inheritance tax

Spouses are universally exempt from inheritance tax in every US state that imposes it. Children and direct descendants also receive significant exemptions — sometimes full exemption.

Not checking the state where the deceased was domiciled

Inheritance tax is based on the state where the deceased was legally domiciled — not where the beneficiary lives. A California beneficiary inheriting from a Pennsylvania resident owes Pennsylvania inheritance tax.

Ignoring the step-up in cost basis

Inherited assets receive a stepped-up cost basis to fair market value at date of death — eliminating capital gains tax on all appreciation during the decedent's lifetime. This is separate from inheritance tax but critical for tax planning.

Undervaluing inherited property for tax purposes

Inheritance tax is calculated on the fair market value at the date of death — not the purchase price or assessed value. An appraisal may be needed to establish accurate valuations for real estate and closely held businesses.

US States with Inheritance Tax (2024)

State	Rate Range	Spouse Exempt?	Children Exempt?
Iowa	2–6%	Yes	Yes (from 2023)
Kentucky	4–16%	Yes	Yes
Maryland	10%	Yes	Yes
Nebraska	1–15%	Yes	Yes (up to $100k)
New Jersey	11–16%	Yes	Yes
Pennsylvania	4.5–15%	Yes	No (4.5% rate)

References

Tax Foundation. Does Your State Have an Estate or Inheritance Tax? Tax Foundation, 2024.
IRS. Instructions for Form 706 — United States Estate Tax Return. IRS, 2024.
Pennsylvania Department of Revenue. Inheritance Tax. PA DOR, 2024.
Nebraska Department of Revenue. Nebraska Inheritance Tax Booklet. NE DOR, 2024.
American Bar Association. Estate Planning FAQs. ABA, 2023.