Important: This article is general educational information, not tax or legal advice. State inheritance tax rules are detailed and change. Confirm current rules with the state revenue department or a licensed CPA or attorney.
Quick answer: In 2026, five states collect an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. The tax is paid by the heir, not the estate, and a surviving spouse is exempt in all five. Iowa repealed its inheritance tax in 2025.
What Is an Inheritance Tax?
An inheritance tax is a state tax on the property a person receives from someone who died. There is no federal inheritance tax. It generally depends on the state where the person who died lived, and sometimes on where they owned real estate, rather than on where the heir lives. For example, an heir who lives in Ohio can owe Pennsylvania inheritance tax if the person who died was a Pennsylvania resident (Bottom Line).
The Five States With an Inheritance Tax (2026)
The table is a simplified overview. Rates and exemption amounts depend on the heir’s relationship to the person who died and on the amount inherited, and published sources do not always agree on top rates.
| State | Spouse | Children | More distant heirs and others |
|---|---|---|---|
| Kentucky | Exempt | Exempt | Graduated rates, roughly 4% to 16% |
| Maryland | Exempt | Exempt | Flat 10% for non-exempt heirs |
| Nebraska | Exempt | Taxed at a low rate above a threshold | Higher graduated rates |
| New Jersey | Exempt | Exempt | Roughly 11% to 16%, depending on class |
| Pennsylvania | Exempt | Taxed, 4.5% for lineal heirs | Higher rates, up to about 15% |
Sources: ustax.tools, Bottom Line, Ramsey Solutions, and The Wealth Advisor (see the source list below).
Who Is Usually Exempt?
- Surviving spouses are exempt in every inheritance-tax state.
- Kentucky: spouse, children, grandchildren, parents, and siblings are exempt (Bottom Line).
- Maryland: spouse, children, stepchildren, grandchildren, parents, grandparents, siblings, and certain in-laws are exempt, while other heirs pay a flat 10% (Bottom Line).
- Nebraska: spouses, charities, and heirs age 21 or younger are exempt.
- New Jersey: spouses, children, grandchildren, parents, grandparents, and charities are exempt.
- Pennsylvania: spouses are exempt, and children and other lineal heirs pay the lowest rate rather than nothing.
Does Maryland Have Both Taxes?
Yes. Maryland is the only state with both an estate tax and an inheritance tax. See states with an estate tax in 2026.
How to Find Out if You Owe It
- Confirm which state the person who died lived in, and whether they owned real estate in an inheritance-tax state.
- Identify your relationship category under that state’s law.
- Check the exemption and the rate table on the state revenue department website.
- Find out the filing deadline and whether the executor files the return and pays from the estate. Late filing can bring interest and penalties.
Frequently Asked Questions
Which states have an inheritance tax in 2026?
Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa repealed its tax in 2025, although older articles may still list it.
Does the federal government have an inheritance tax?
No. See Inheritance Tax vs. Estate Tax.
Do I pay if I live in a state without an inheritance tax?
You can, if the person who died lived in a state that has one.
Is an inheritance also subject to federal income tax?
Generally no, but some assets, such as inherited retirement accounts, have special rules. See Do You Pay Taxes on an Inheritance?
Keep Reading
- States With an Estate Tax in 2026
- What Is Probate? How It Works Step by Step
- Are You Responsible for a Deceased Person’s Debt?
- What Happens If You Die Without a Will?
How We Prepared This Article
Inheritance tax rules are set by each state, so we compare several reputable publications and tell you when they disagree. Rates and exemptions are reviewed at least twice a year and whenever a state changes its law. This website is an educational publisher, not a law firm or CPA firm.
When to Get Professional Help
If you inherit from someone who lived in one of these states, ask the estate’s executor or a licensed attorney or CPA whether a state return is required and what deadline applies.
Sources
- AARP: States with estate and inheritance taxes
- Additional references consulted (not linked): ustax.tools, Bottom Line, Ramsey Solutions, and The Wealth Advisor, 2025 to 2026 publications on state inheritance taxes. Always confirm with your state revenue department.
Last reviewed: October 4, 2026
Next review due: April 4, 2027
Disclaimer: This content is for general information only and is not tax or legal advice. Consult a licensed CPA or attorney about your situation.