Maryland Estate Tax and Inheritance Tax
Figures verified October 17, 2026 against Comptroller of Maryland · Update log
- State estate tax: Yes, $5,000,000 exemption
- Inheritance tax: Yes, depends on who inherits
- Federal: only above $15 million
Short answer
Maryland has both. The estate pays Maryland estate tax if it is worth more than $5,000,000. Separately, a 10% inheritance tax applies to what goes to anyone other than close family (spouse, children, grandchildren, parents, siblings and a few others are exempt).
What to do, and by when
| Who files | Which form | Deadline |
|---|---|---|
| The executor, if the estate is over $5,000,000 | Maryland MET-1 | 9 months after the date of death |
| The executor, usually paying from each heir's share | Maryland inheritance tax: Paid through the county Register of Wills | Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days) |
| The executor, only if the estate is over $15 million or to keep the unused exemption for a surviving spouse | Federal Form 706 | 9 months after the date of death (an automatic 6-month extension to file is available on Form 4768) |
| The executor | Final Form 1040 for the person who died | April 15 of the year after death |
Quick estimate
Does this estate owe Maryland estate tax?
Enter the estate's value after debts, funeral and administration costs, and anything left to a spouse or charity. For deaths in 2026, the Maryland exemption is $5,000,000.
Quick facts: Maryland (2026)
| Estate Tax | Yes |
|---|---|
| Inheritance Tax | Yes |
| Estate Tax Exemption | $5,000,000 |
| Estate Tax Rates | 16% on the amount over $5 million |
| Estate Tax Return | MET-1, due 9 months after the date of death |
| Inheritance Tax Rates | 10% |
| Inheritance Tax Due | Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days) |
| Federal Exemption (2026) | $15 million |
| Tax Authority | Comptroller of Maryland |
| Verified | 2026-10-17 |
Maryland inheritance tax rates by relationship
Inheritance tax is charged on what each beneficiary receives, at a rate set by their relationship to the person who died. The executor usually pays it from the estate before distributing.
| Class | Who | Rate |
|---|---|---|
| Exempt | Spouse, children, grandchildren and other descendants, stepchildren, parents, stepparents, grandparents, siblings, a child's spouse, registered domestic partners, charities | Exempt |
| Everyone else | Nieces, nephews, aunts, uncles, cousins, friends | 10% of the whole share (a share worth $1,000 or less is not taxed) |
Deadline: Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days).
Maryland estate tax
Maryland is one of 13 jurisdictions with its own estate tax. For deaths in 2026, it applies to estates worth more than $5,000,000, at rates of 16% on the amount over $5 million. The tax is paid by the estate, not by the heirs.
The estate generally includes everything the person owned at death: the home, bank and brokerage accounts, retirement accounts, business interests, and life insurance they owned. Debts, funeral and administration costs, and gifts to a spouse or charity reduce the taxable amount. Nonresidents who owned real estate in Maryland can also owe Maryland tax on that property.
Because the Maryland threshold is well below the federal $15 million, many estates owe Maryland tax while owing no federal estate tax at all.
What's specific to Maryland
- Maryland is the only state with both an estate tax and an inheritance tax. Inheritance tax paid is credited against the Maryland estate tax.
- Maryland allows portability of the unused Maryland estate tax exemption to a surviving spouse if elected on a timely MET-1.
- For deaths on or after July 1, 2026, a decedent's financial assets are taxed by the state where the decedent lived (Chapter 503, Laws of 2026).
- Life insurance paid to a named beneficiary is not subject to Maryland inheritance tax.
What executors file, and when
- Maryland estate tax return (MET-1): due 9 months after the date of death, if the estate is over $5,000,000. File with the Comptroller of Maryland.
- Maryland inheritance tax (Paid through the county Register of Wills): Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days).
- Federal Form 706: only if the estate is over $15 million, or to elect portability for a surviving spouse. Due 9 months after the date of death (an automatic 6-month extension to file is available on Form 4768).
- Final Form 1040 for the person who died: due April 15 of the following year.
- Form 1041 (estate income tax): if the estate has $600 or more of income.
Optional: get help filing
Get a flat-fee quote to file the Maryland estate and inheritance tax return
Tell us a little about the estate and a CPA or Enrolled Agent who prepares Maryland estate and inheritance tax returns will reply with a fixed price. Free, and no obligation.
Federal estate tax
For deaths in 2026, the federal estate tax applies only to estates over $15,000,000 per person, at rates up to 40%. The exemption was set by the July 4, 2025 tax law (Public Law 119-21, often called the "One Big Beautiful Bill Act"; the IRS now calls it the Working Families Tax Cuts law), is permanent, and is indexed for inflation starting in 2027. A surviving spouse can add the unused exemption of the first spouse to die (portability) by filing Form 706. See the federal estate tax guide.
Frequently asked questions
Do I have to pay inheritance tax in Maryland?
It depends on your relationship to the person who died. Exempt (spouse, children, grandchildren and other descendants, stepchildren, parents, stepparents, grandparents, siblings, a child's spouse, registered domestic partners, charities): exempt. Everyone else (nieces, nephews, aunts, uncles, cousins, friends): 10% of the whole share (a share worth $1,000 or less is not taxed).
Does Maryland have an estate tax in 2026?
Yes. Maryland taxes estates over $5,000,000 for deaths in 2026, at rates of 16% on the amount over $5 million. The executor files the return and pays the tax from the estate before assets are distributed.
Who must file a Maryland estate tax return, and when is it due?
The executor files if the estate exceeds the Maryland filing threshold ($5,000,000 for 2026 deaths). It is due 9 months after the date of death on Form MET-1. Nonresidents who owned real estate or tangible property in Maryland may also have to file.
Can an estate owe Maryland estate tax but no federal estate tax?
Yes, and that is common. Maryland's threshold ($5,000,000) is far below the federal exemption of $15 million, so many estates owe state tax while owing nothing federally.
When is Maryland inheritance tax due?
Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days). The filing is Paid through the county Register of Wills.
Who pays Maryland inheritance tax, the estate or the heir?
The tax is owed on each beneficiary's share. In practice the executor usually pays it out of the estate before distributing, unless the will says otherwise, so heirs receive their share net of tax.
Is an inheritance taxable income?
No. Money or property you inherit is not federal taxable income. But withdrawals from an inherited traditional IRA or 401(k) are taxed as income, and if you sell inherited property you may owe capital gains tax on any increase in value after the date of death.
What is the federal estate tax exemption for 2026?
$15,000,000 per person for deaths in 2026, set by Public Law 119-21 (2025). It is permanent and indexed for inflation from 2027. A surviving spouse can add the unused exemption of the first spouse to die (portability) by filing Form 706.
Sources
- 1.Comptroller of Maryland — official guidancemarylandcomptroller.gov
- 2.Comptroller of Marylandmarylandcomptroller.gov
- 3.Maryland inheritance taxregisters.maryland.gov
- 4.IRS — Estate Taxirs.gov
- 5.IRS — What's New, Estate and Gift Taxirs.gov
- 6.Tax Foundation — Estate and Inheritance Taxes by State, 2026taxfoundation.org
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.