Inheritance Tax Calculator
Figures verified October 17, 2026 · Update log
Short answer
For deaths in 2026, only five states tax what heirs receive: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Iowa repealed its inheritance tax for deaths from January 1, 2025, and no other state has one. What decides is where the person who died lived (and where any real estate is), not where you live. In every one of the five, a spouse pays nothing; children pay nothing except in Pennsylvania (4.5%) and Nebraska (1% over $100,000). There is no federal inheritance tax.
The rule that decides which state taxes you
Inheritance tax follows the person who died, not the heir. If they lived in one of the five states, that state taxes what each heir receives, wherever the heirs live. If they lived anywhere else, no state inheritance tax applies, except on real estate they owned in one of the five states, which that state can tax.
Within a state, the tax depends on each heir's relationship to the person who died and on how much that heir receives. Each heir is worked out separately, which is why the calculators ask for one row per heir.
Calculators for the five states
Tax on a $100,000 inheritance, by state and relationship
What one heir would owe on $100,000 for a death in 2026, with no life insurance or age exemption. Computed with the same rules as the calculators.
| Heir | Pennsylvania | New Jersey | Kentucky | Maryland | Nebraska |
|---|---|---|---|---|---|
| Husband or wife | $0 | $0 | $0 | $0 | $0 |
| Son or daughter (including adopted) | $4,500 | $0 | $0 | $0 | $0 |
| Stepchild | $4,500 | $0 | $0 | $0 | $0 |
| Grandchild | $4,500 | $0 | $0 | $0 | $0 |
| Great-grandchild | $4,500 | $0 | $8,960 | $0 | $0 |
| Mother or father | $4,500 | $0 | $0 | $0 | $0 |
| Grandparent | $4,500 | $0 | $12,670 | $0 | $0 |
| Brother or sister | $12,000 | $8,250 | $0 | $0 | $0 |
| Half-brother or half-sister | $12,000 | $8,250 | $0 | $0 | $0 |
| Niece or nephew | $15,000 | $15,000 | $0 | $10,000 | $6,600 |
| Son-in-law or daughter-in-law | $4,500 | $8,250 | $8,960 | $0 | $0 |
| Aunt or uncle | $15,000 | $15,000 | $8,960 | $10,000 | $6,600 |
| Cousin | $15,000 | $15,000 | $12,670 | $10,000 | $6,600 |
| Friend, partner or anyone unrelated | $15,000 | $15,000 | $12,670 | $10,000 | $11,250 |
| Charity | $0 | $0 | $0 | $0 | $0 |
Kentucky figures reflect the 2026 change that made nieces and nephews exempt. In Pennsylvania, a child aged 21 or younger inheriting from a parent pays 0%; in Nebraska, anyone under 22 pays nothing.
States with no inheritance tax
The other 45 states and the District of Columbia have no inheritance tax. Iowa phased its tax out and repealed it for deaths on or after January 1, 2025; Indiana and Tennessee repealed theirs earlier. Some of these states have an estate tax instead, which the estate pays before distribution; see the estate tax calculator and the inheritance tax by state overview.
Frequently asked questions
Is there a federal inheritance tax?
No. The federal government taxes estates, not heirs, and only estates over $15 million for deaths in 2026. That tax is paid by the estate before anything is distributed.
Which states have an inheritance tax in 2026?
Five: Pennsylvania, New Jersey, Kentucky, Maryland and Nebraska. Iowa's inheritance tax was repealed for deaths on or after January 1, 2025.
Does it matter which state I live in as the heir?
No. The state where the person who died lived decides which inheritance tax applies, plus any state where they owned real estate. An heir in Florida inheriting from a parent who lived in Pennsylvania pays Pennsylvania inheritance tax; an heir in Pennsylvania inheriting from a parent in Florida pays none.
What if the person who died owned a house in another state?
Real estate is taxed by the state where it sits. If someone who lived in a state with no inheritance tax owned a house in Pennsylvania or New Jersey, that state can tax the house even though the rest of the estate is untaxed.
Do spouses pay inheritance tax?
No. All five inheritance-tax states exempt a surviving spouse completely.
Is life insurance subject to inheritance tax?
Generally not when it is paid to a named beneficiary. Pennsylvania does not tax life insurance at all; New Jersey, Kentucky, Maryland and Nebraska tax it only when it is paid to the estate.
Does Iowa still have an inheritance tax?
Not for deaths on or after January 1, 2025. Estates of people who died before 2025 may still owe Iowa inheritance tax under the old rules.
Is an inheritance taxable income?
Not for federal income tax. But withdrawals from an inherited traditional IRA or 401(k) are taxable income to you, and if you sell inherited property you pay capital gains tax only on growth after the date of death.
Sources
- 1.Pennsylvania Department of Revenue: Inheritance Taxpa.gov
- 2.NJ Division of Taxation: Inheritance and Estate Tax ratesnj.gov
- 3.KRS 140.070, inheritance tax classes and rates (amended 2026, deaths on or after Jan. 1, 2026)apps.legislature.ky.gov
- 4.Md. Code, Tax-General §7-203 (exemptions)mgaleg.maryland.gov
- 5.Neb. Rev. Stat. §77-2004 (immediate relatives, spouse and under-22 exemptions)nebraskalegislature.gov
- 6.Iowa Department of Revenue: Introduction to Iowa inheritance tax (repeal for deaths on or after 2025-01-01)revenue.iowa.gov
- 7.Tax Foundation: Estate and Inheritance Taxes by State, 2026taxfoundation.org
- 8.IRS: Estate Taxirs.gov
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.