Comparison Tool

How Much Inheritance Tax Will Heirs Owe by State

Inheritance tax is paid by the heir, not the estate, and depends on relationship. A $100,000 inheritance to a sibling is tax-free in most states but costs about $12,000 in Pennsylvania (12%) and roughly $11,000 in Nebraska. A distant friend or unrelated heir can owe 15-16% in Pennsylvania, New Jersey, Kentucky, or Maryland. Spouses are exempt everywhere; children are exempt in every state except Pennsylvania (4.5%) and Nebraska (1% above $100,000). Iowa repealed its tax in 2025.

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EstateFig provides estimates for educational purposes only. Estate, gift, and inheritance tax rules are complex, vary by state, and change frequently (several state thresholds adjust for inflation each year). This is not legal or tax advice. Consult a qualified estate-planning attorney or CPA for your situation. Figures reflect 2026 thresholds published by state revenue departments and the IRS; always verify the current rate with the relevant authority before relying on any number.

How It Works

Inheritance tax is levied on the recipient and keyed to relationship class, not estate size. We apply each state's 2026 rate for the chosen relationship (spouse exempt everywhere; children exempt except Pennsylvania 4.5% and Nebraska 1% above $100,000; siblings and others face 11-16%) after subtracting that state's relationship-based exemption. Pennsylvania taxes from the first dollar for non-spouses. There is no federal inheritance tax, so the federal line is always zero. Iowa repealed its tax effective 2025 and is excluded.

What Should You Do?

If you plan to leave money to siblings, nieces, nephews, or friends, the state of death matters a lot - those heirs can owe 11-16% while your spouse and children often owe nothing. Lifetime gifts under the $19,000 annual exclusion move money out before death and avoid inheritance tax entirely for those relationships. Maryland is the only state layering an inheritance tax on top of its estate tax. Confirm the decedent's state of residence and any in-state real estate with counsel.

Frequently Asked Questions

Who pays inheritance tax?

The heir, not the estate. The rate depends on the heir's relationship to the deceased and the state where the deceased lived or owned property.

Are spouses really exempt?

Yes, in all five remaining inheritance-tax states a surviving spouse owes 0%. Children are exempt everywhere except Pennsylvania (4.5%) and Nebraska (1% above $100,000).

Why is Pennsylvania highest?

Pennsylvania has no exemption for non-spouses and taxes from the first dollar: 4.5% lineal, 12% siblings, 15% others, plus a 5% discount if paid within three months.

Is there a federal inheritance tax?

No. The federal government has an estate tax (on the estate) but no inheritance tax (on heirs). This tool's federal line is always zero.

Does Iowa still have it?

No. Iowa repealed its inheritance tax for deaths on or after January 1, 2025, so only five states tax inheritances in 2026.