Inheritance Tax by State (2026)

Figures verified October 17, 2026 · Update log

Short answer

Only 5 states tax heirs on what they inherit in 2026: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Iowa repealed its inheritance tax for deaths on or after January 1, 2025. Every other state has none, and there is no federal inheritance tax.

A surviving spouse pays nothing in any of the five. Children pay nothing except in Pennsylvania (4.5%) and Nebraska (1% on amounts over $100,000 per person). The state that counts is where the person who died lived (and where their real estate is), not where you live.

The 5 inheritance tax states compared

The rate depends on how you were related to the person who died. Here is each state's full schedule for deaths in 2026, with the deadline and a calculator for your share.

State	Rates by relationship	Pays nothing	Deadline	Guides
Pennsylvania	Lineal heirs (children, grandchildren and other descendants, a child's spouse, parents, grandparents): 4.5% Siblings (brothers and sisters): 12% Everyone else (nieces, nephews, friends and other beneficiaries): 15%	Surviving spouse; a parent inheriting from a child aged 21 or younger; a child aged 21 or younger inheriting from a parent or stepparent	Delinquent 9 months after death; 5% discount if paid within 3 months	Pennsylvania guide Calculator
New Jersey	Class C (brother, sister, a child's spouse or civil union partner): First $25,000 exempt, then 11% to 16% Class D (everyone else, including nieces, nephews and friends): 15% up to $700,000, 16% above (a share under $500 is not taxed)	Spouse, civil union or domestic partner, child, stepchild, grandchild, parent; Charities and qualifying organizations	8 months after the date of death; 10% a year interest after that	New Jersey guide Calculator
Kentucky	Class B (son- or daughter-in-law, aunt, uncle, great-grandchild (and nieces and nephews for deaths before 2026)): $1,000 exemption, then 4% to 16% Class C (everyone else, including cousins and friends): $500 exemption, then 6% to 16%	Spouse, parent, child, stepchild, grandchild, brother, sister, half-brother, half-sister, and (for deaths from January 1, 2026) nieces and nephews, including half-nieces and half-nephews	For deaths on or after July 1, 2026: 24 months after the date of death, with a 5% discount if paid within 14 months. For earlier deaths: 18 months, and 9 months for the discount	Kentucky guide Calculator
Maryland	Everyone else (nieces, nephews, aunts, uncles, cousins, friends): 10% of the whole share (a share worth $1,000 or less is not taxed)	Spouse, children, grandchildren and other descendants, stepchildren, parents, stepparents, grandparents, siblings, a child's spouse, registered domestic partners, charities	Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days)	Maryland guide Calculator
Nebraska	Immediate relatives (parents, grandparents, siblings, children and other descendants, and their spouses): 1% on amounts over $100,000 per person Remote relatives (aunts, uncles, nieces, nephews and their descendants (which includes first cousins), and their spouses): 11% on amounts over $40,000 per person Everyone else (friends and unrelated beneficiaries): 15% on amounts over $25,000 per person	Surviving spouse, and any beneficiary under age 22	12 months after the date of death; interest runs after that	Nebraska guide Calculator

Maryland is the only state with both an inheritance tax and an estate tax. Nebraska's tax is collected by the county, not the state. Kentucky and Pennsylvania give a 5% discount for paying early: within 3 months of death in Pennsylvania, and in Kentucky within 14 months for deaths from July 1, 2026 (9 months for earlier deaths).

Which state's tax applies to you

Inheritance tax follows the person who died and their property, not the heir. Two rules cover almost every case:

The state where the person lived taxes their bank and brokerage accounts, investments and other personal property, wherever those accounts are held.
The state where real estate sits can tax that real estate (and tangible things kept there, like a car, a boat or furniture), even if the owner lived somewhere else.

Your own state of residence does not matter. New Jersey says so directly: filing "is not based on the beneficiary's residence." The other four states work the same way: their rules turn on where the person who died lived and where the property is.

If the person who died lived in another state

Each of the five states taxes a nonresident only on property located there:

Pennsylvania: real estate and tangible personal property located in Pennsylvania. A nonresident's intangible property (bank accounts, stocks) is not taxed.
New Jersey: real estate and tangible personal property (a car, a boat, furniture, jewelry) located in New Jersey, reported on Form IT-NR within 8 months. Stocks and bank deposits of a nonresident are not taxed. If every beneficiary is Class A, a Form L-9NR waiver request is used instead.
Kentucky: real estate and personal property located in Kentucky. A Kentucky resident is taxed on everything except real estate in another state.
Maryland: Maryland real estate and tangible property located in Maryland. For deaths on or after July 1, 2026, financial assets are taxed by the state where the person lived, and Maryland repealed its old reciprocal exemption for nonresidents' personal property (Chapter 503, Laws of 2026). A nonresident's representative files an application with the Register of Wills in the county where the property is.
Nebraska: property within Nebraska, such as a house or farmland, taxed by the county where it sits.

Worked examples

A Florida heir of a Pennsylvania parent

Your mother lived in Pittsburgh and left you, her only child, her house and a brokerage account worth $500,000 in total. You live in Florida, which has no inheritance tax, but that does not matter: Pennsylvania taxes what passes from a Pennsylvania resident. As her child you pay 4.5%, about $22,500 before deductions for debts, funeral and administration costs. If the executor pays within 3 months of her death, the 5% discount brings it to about $21,375. The return (REV-1500) is due 9 months after death. Try the Pennsylvania calculator.

A New Jersey heir of a Florida parent who owned a New Jersey condo

Your father lived in Florida and owned a condo at the Jersey Shore. You live in New Jersey. His Florida bank and investment accounts are not subject to any inheritance tax, even though you live in New Jersey. The condo is New Jersey real estate, so New Jersey's nonresident rules apply to it. As his child you are Class A, so no tax is due, but the condo still needs a New Jersey waiver before it can be sold or retitled (Form L-9NR). If he had left the condo to a niece instead, she would be Class D: 15% up to $700,000, 16% above (a share under $500 is not taxed), reported on Form IT-NR within 8 months. See the New Jersey waiver guide.

Who actually pays it

Inheritance tax is charged on each beneficiary's share, at that beneficiary's rate. In practice the executor files the return and pays the tax out of the estate before distributing, so each heir receives their share with the tax already taken out. Many wills say the estate pays all death taxes; in that case the tax comes out of the residue, which can shift the cost onto whoever receives what is left.

Assets that pass outside the will, such as a joint account with a niece or a payable-on-death account, can still be taxable. In Pennsylvania, if the executor does not report them, the person who received them is responsible for filing and paying. In Maryland, for example, the Register of Wills sends the bill for non-probate assets to the personal representative or the beneficiary, and a 10% penalty applies after 30 days.

Siblings, nieces, nephews and unmarried partners pay the most

Spouses and (outside Pennsylvania and Nebraska) children pay nothing. The bill lands on brothers and sisters, nieces and nephews, unmarried partners and friends. Here is what each pays in each state:

Heir	Pennsylvania	New Jersey	Kentucky	Maryland	Nebraska
Spouse	0%	Exempt	Exempt	Exempt	Exempt
Child or grandchild	4.5%	Exempt	Exempt	Exempt	1% on amounts over $100,000 per personExempt if the heir is under 22
Brother or sister	12%	First $25,000 exempt, then 11% to 16%	Exempt	Exempt	1% on amounts over $100,000 per person
Niece or nephew	15%	15% up to $700,000, 16% above (a share under $500 is not taxed)	Exempt	10% of the whole share (a share worth $1,000 or less is not taxed)	11% on amounts over $40,000 per person
Unmarried partner	15%	15% up to $700,000, 16% above (a share under $500 is not taxed)A spouse, civil union partner or registered domestic partner is Class A (exempt)	$500 exemption, then 6% to 16%	10% of the whole share (a share worth $1,000 or less is not taxed)A registered domestic partner is exempt (deaths from Oct. 1, 2023)	15% on amounts over $25,000 per person
Friend	15%	15% up to $700,000, 16% above (a share under $500 is not taxed)	$500 exemption, then 6% to 16%	10% of the whole share (a share worth $1,000 or less is not taxed)	15% on amounts over $25,000 per person
Charity	Exempt	Exempt	Exempt (qualifying charitable, religious and educational groups)	Exempt (501(c)(3) organizations)	Exempt (qualifying religious, charitable and educational groups)

Unmarried partners are treated as unrelated in all five states unless they are registered: New Jersey treats civil union and domestic partners like spouses, and Maryland exempts registered domestic partners. In-laws vary (New Jersey taxes a child's spouse as Class C, Kentucky as Class B, while Pennsylvania, Maryland and Nebraska treat a child's spouse like the child), so check the state guide.

What is commonly exempt

Everything left to a spouse, in all five states.
Life insurance. Paid to a named beneficiary, it is exempt in New Jersey, Kentucky and Maryland. Nebraska taxes it only when it is paid to the executor or the estate. Pennsylvania exempts life insurance proceeds whether they go to a named beneficiary or to the estate.
Gifts to charity: qualifying charitable, religious and educational organizations are exempt in all five.
Pennsylvania: property owned jointly by spouses; qualifying farmland passing to family; a $3,500 family exemption that a spouse (or a child or parent living in the household) can claim against probate assets.
Maryland: property handled in a small estate proceeding, and the first $1,000 to each recipient.
Nebraska: anything going to a beneficiary under age 22.
New Jersey: a share worth less than $500.

Skipping probate does not mean skipping inheritance tax. A joint account with someone other than a spouse, or a payable-on-death account, can still be taxed. Pennsylvania, for example, taxes the decedent's share of a joint account even if their name was added only for convenience. The state guides cover the details.

Estate tax vs inheritance tax

An estate tax is charged on the whole estate before anything is handed out, and it only applies above an exemption: $15,000,000 federally for deaths in 2026, and lower thresholds in the 13 jurisdictions with their own estate tax. The executor files and pays, and the heirs' relationship to the person who died makes no difference (except that a spouse and charities are deducted).

An inheritance tax is charged on each heir's share, at a rate set by their relationship, often with little or no exemption. A $200,000 estate can owe inheritance tax; it will never owe federal estate tax. Maryland charges both, and credits the inheritance tax against its estate tax. More in estate tax vs inheritance tax.

States with no inheritance tax

The other 46 jurisdictions (45 states and DC) have no inheritance tax. Some of them have an estate tax instead, paid by the estate (marked *).

See every state's rules on the estate and inheritance tax by state page.

Handling an estate right now? The executor checklist walks through every step, including the state tax deadlines.

Frequently asked questions

Which states have an inheritance tax in 2026?

Five: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Iowa used to have one, but it does not apply to deaths on or after January 1, 2025. No other state, and not the federal government, taxes heirs on what they inherit.

Do I pay inheritance tax if I live in a different state from the person who died?

Where you live does not matter. What matters is where the person who died lived, and where any real estate they owned is located. A Florida resident who inherits from a parent who lived in Pennsylvania owes Pennsylvania inheritance tax at 4.5%. A New Jersey resident who inherits from a parent in Florida owes no inheritance tax, unless the parent owned real estate or other tangible property in an inheritance-tax state.

Is there a federal inheritance tax?

No. The federal government has an estate tax, paid by the estate and only on estates over $15,000,000 for deaths in 2026, but no inheritance tax. Money you inherit is also not federal taxable income.

Do Florida, California or Texas have an inheritance tax?

No. None of them has an inheritance tax or an estate tax. Heirs there only deal with inheritance tax if the person who died lived in, or owned real estate in, Pennsylvania, New Jersey, Kentucky, Maryland or Nebraska.

Do siblings pay inheritance tax?

It depends on the state. Siblings pay 12% in Pennsylvania and, in New Jersey, first $25,000 exempt, then 11% to 16%. In Nebraska they pay 1% on amounts over $100,000 per person. Siblings are exempt in Kentucky and Maryland.

Do nieces and nephews pay inheritance tax?

Yes in four of the five. Kentucky made nieces and nephews exempt (Class A) for deaths on or after January 1, 2026. Pennsylvania: 15%. New Jersey: 15% up to $700,000, 16% above (a share under $500 is not taxed). Maryland: 10% of the whole share (a share worth $1,000 or less is not taxed). Nebraska: 11% on amounts over $40,000 per person.

Is life insurance subject to inheritance tax?

Usually not. Life insurance paid to a named beneficiary is exempt in New Jersey, Kentucky and Maryland, and is not taxed in Nebraska unless it is paid to the executor or the estate. Pennsylvania exempts life insurance proceeds whether they go to a named beneficiary or to the estate.

Who pays inheritance tax, the estate or the beneficiary?

Legally the tax is on each beneficiary's share, but in practice the executor usually pays it from the estate before distributing, and each heir receives their share net of tax. Many wills say the estate pays all such taxes. For assets that pass outside the will, like a joint account or a payable-on-death account, the person who received the asset may be billed directly.

When is inheritance tax due?

Pennsylvania: Delinquent 9 months after death; 5% discount if paid within 3 months. New Jersey: 8 months after the date of death; 10% a year interest after that. Kentucky: For deaths on or after July 1, 2026: 24 months after the date of death, with a 5% discount if paid within 14 months. For earlier deaths: 18 months, and 9 months for the discount. Maryland: Probate assets: with the Administration Account. Non-probate assets: on the Register of Wills invoice (10% penalty after 30 days). Nebraska: 12 months after the date of death; interest runs after that.

Is an inheritance taxable income?

No. What you inherit is not federal taxable income. Two exceptions catch people out: 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.

Sources

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.