Inheritance Tax Calculator
Estimate federal estate tax and state-level inheritance or estate tax on a US estate. Enter the total estate value, select the state, and choose the beneficiary relationship to see your combined tax liability based on 2026 rates.
How the Inheritance Tax Calculator Works
The US inheritance tax calculator estimates the combined federal and state tax owed when an estate is transferred after death. At the federal level, the estate tax applies to the total value above the lifetime exemption of $13.61 million (2024, inflation-adjusted for 2026). The federal rate is a flat 40% on the taxable amount above the exemption. At the state level, six states impose an inheritance tax based on the beneficiary's relationship to the deceased, and thirteen states plus DC levy their own estate tax with varying exemption thresholds and graduated rates.
This calculator processes all data in your browser. No estate details are sent to any server, and nothing is stored remotely. Enter your gross estate value, select a state, choose the beneficiary relationship, and apply any additional exemptions or deductions to see a detailed tax breakdown.
Federal Estate Tax vs State Inheritance Tax
Federal estate tax and state inheritance tax are different levies. The federal estate tax is paid by the estate itself before distribution and applies uniformly across all states. State inheritance tax is paid by the individual beneficiary and depends on their relationship to the deceased. Spouses are typically exempt. Children and direct descendants usually pay lower rates (0-10%), while distant relatives and non-relatives face higher rates (up to 18% in some states).
Only six states impose an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state that imposes both an estate tax and an inheritance tax. Thirteen states and DC have their own estate tax with exemptions ranging from $1 million (Oregon, Massachusetts) to $13.61 million (Connecticut, matching the federal level).
States with Inheritance Tax (2026 Rates)
In states with inheritance tax, the rate depends on who inherits. Surviving spouses are exempt everywhere. In Kentucky and New Jersey, children and direct descendants are also fully exempt. Iowa charges 2-6% for non-exempt beneficiaries. Nebraska charges 1% for immediate family, 11% for remote relatives, and 15% for non-relatives. Pennsylvania charges 0% for spouses, 4.5% for children, 12% for siblings, and 15% for others. These rates apply to the beneficiary's share, not the total estate.
States with Estate Tax (2026 Thresholds)
Estate tax states have their own exemption thresholds below which no state estate tax is owed. Oregon and Massachusetts have the lowest exemptions at $1 million. New York's exemption is approximately $6.94 million but features a "cliff" — if the estate exceeds 105% of the exemption, the entire estate is taxed, not just the excess. Washington state has the highest top rate at 20%. Connecticut matches the federal exemption at $13.61 million. Each state's graduated rates range from about 0.8% to 20% depending on the estate size.
Tips to Reduce Estate and Inheritance Tax
Several legal strategies can reduce estate and inheritance tax liability. Annual gift exclusions allow you to give up to $18,000 per recipient per year (2024) without reducing your lifetime exemption. Irrevocable life insurance trusts (ILITs) remove policy proceeds from the taxable estate. Charitable remainder trusts reduce estate size while providing income during your lifetime. For married couples, portability allows the surviving spouse to use the deceased spouse's unused federal exemption, effectively doubling the exclusion to $27.22 million.
Consulting an estate planning attorney is essential for estates approaching state or federal thresholds. Based on IRS estate tax guidelines and state revenue department rates for 2026.
Inheritance Tax Calculator: 2026 Federal Exemption Update
For tax year 2026 the federal estate and gift tax exemption sits at $15 million per individual (about $30 million per couple with portability), per the IRS 2025 inflation adjustments (Rev. Proc. 2024-40). The annual gift exclusion is $19,000 per recipient. The One Big Beautiful Bill Act (OBBB) signed in 2025 set the federal exemption at $15M from 2026 and indexed it thereafter, replacing the previous TCJA scheduled-sunset that would have dropped the exemption to ~$7M in 2026. Updated 2026-06-19.
Inheritance Tax Is Charged Where the Deceased Lived, Not Where You Live
The most common mistake heirs make is checking their own state. Inheritance tax follows the decedent's state of residence and the location of any real property they owned — not the beneficiary's address. A daughter in California inheriting from a father who lived in Pennsylvania pays Pennsylvania inheritance tax, even though California levies none. The reverse also holds: moving to a no-inheritance-tax state after the death changes nothing, because the liability was fixed at the date of death.
Rates in the remaining states are set by relationship, not amount — the opposite of how federal estate tax works. Surviving spouses are exempt everywhere. Children and direct descendants are usually exempt or taxed at a low single-digit rate, while siblings pay more and unrelated beneficiaries — including unmarried partners and friends — routinely face the top bracket. Naming a partner rather than a child as heir can multiply the bill on an identical estate, which is why the beneficiary relationship field in the calculator above matters as much as the estate value.
Two practical points. Federal estate tax and state inheritance tax can both hit the same estate: the estate settles the federal tax before distribution under the $15 million per-person exclusion published by the IRS, then each beneficiary is assessed separately under state inheritance rules. And state filing deadlines are short — commonly nine months from the date of death, with a discount in some states for early payment — so the return usually falls due well before probate concludes. Updated 2026-08-26.
State-by-State Inheritance Tax in 2026: Six Remaining States
Only six U.S. states still impose an inheritance tax on the recipient (separate from the estate tax on the deceased's estate): Iowa (phasing out, fully repealed by 2025 — already 0%), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state with both an estate tax AND an inheritance tax. Rates depend on heir relationship: spouses are always exempt; children and parents pay 0-5%; siblings 4-13%; nieces/nephews 6-15%; unrelated heirs 10-18%. Twelve states + DC charge estate tax (paid by the estate before distribution): WA, OR, MN, IL, NY, ME, VT, MA, RI, CT, MD, HI, plus DC — thresholds range from $1M (OR, MA) up to the federal-aligned level. For state-specific rates, see IRS estate tax overview and your state's revenue department. Updated 2026-06-19.
Last updated: June 2026
Frequently Asked Questions
How accurate is this inheritance tax calculator?
This inheritance tax calculator uses the 2026 federal exemption ($15M per person) and state-specific brackets pulled from each state revenue department. It returns an estate-level and beneficiary-level estimate; an actual Form 706 filing may differ once gift-tax history, deductions, and state-specific elections are factored in.
When should I rerun the inheritance tax calculator?
Rerun after any change in federal exemption (the OBBB Act 2025 set the exemption at $15M from 2026 and indexed it, replacing the previous TCJA scheduled-sunset), after a major asset sale, and after every change in state residency, since six states have inheritance tax and 13+DC have estate tax.
What is the federal estate tax exemption for 2026?
The federal estate tax exemption is $15 million per individual for tax year 2026, up from $13.99 million in 2025 (IRS Estate Tax filing-threshold table). Estates below this threshold owe no federal estate tax. Married couples can combine exemptions through portability, effectively shielding up to $30 million from federal estate tax.
What is the difference between estate tax and inheritance tax?
Estate tax is paid by the estate before assets are distributed and is based on the total estate value. Inheritance tax is paid by individual beneficiaries and depends on their relationship to the deceased. Six states have inheritance tax (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania), while 13 states and DC have estate tax.
Which states have both estate tax and inheritance tax?
Maryland is the only state that imposes both an estate tax and an inheritance tax. The estate tax applies to estates above $5 million, and the inheritance tax is 10% on transfers to non-exempt beneficiaries. However, the inheritance tax paid is credited against the estate tax owed.
Are surviving spouses exempt from inheritance tax?
Yes. Surviving spouses are exempt from inheritance tax in all six states that impose it (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Most states also exempt transfers to children and direct descendants, though rates vary. Pennsylvania charges 4.5% even for children.
What is portability and how does it work?
Portability allows a surviving spouse to use the deceased spouse's unused federal estate tax exemption (called DSUE — Deceased Spouse Unused Exclusion). If the first spouse used only $3 million of their $13.61 million exemption, the surviving spouse can add the remaining $10.61 million to their own exemption. The executor must file Form 706 to elect portability.
What happens if my estate is just above the New York exemption?
New York has a unique "cliff" provision. If your estate exceeds 105% of the state exemption (approximately $7.29 million), the entire estate is subject to estate tax — not just the amount above the exemption. This can result in a significantly higher tax bill compared to an estate just below the threshold.
How can I reduce estate and inheritance tax?
Common strategies include annual gift exclusions ($19,000 per recipient in 2026), irrevocable life insurance trusts (ILITs), charitable remainder trusts, family limited partnerships, and using both spouses' exemptions through portability. For state inheritance tax, some states exempt charitable organizations and certain family members entirely.
Did the One Big Beautiful Bill Act change the federal estate tax exemption?
Yes. The OBBB Act signed in 2025 set the federal estate and gift tax exemption at $15M per individual in 2026, indexed for inflation) permanent — replacing the previous TCJA scheduled-sunset that would have dropped the exemption to roughly $7M starting 2026. Most estates under ~$14M per spouse now face zero federal estate tax indefinitely. State estate/inheritance taxes were unaffected. Source: IRS.
Do I owe inheritance tax if I live in a no-tax state but the deceased lived in Pennsylvania?
Yes. Inheritance tax is based on the deceased's state of residence, NOT the heir's. If the deceased lived in PA (4.5-15% inheritance tax depending on relationship), you pay PA inheritance tax even if you live in Florida or another no-tax state. The estate executor files PA Form REV-1500. Conversely, if the deceased lived in TX or FL (no inheritance tax) and you live in NJ, you owe nothing — NJ doesn't tax you for inheriting out-of-state assets.
Do I pay inheritance tax based on my state or the state where the person died?
The state where the deceased lived, plus any state where they owned real property. A beneficiary in California inheriting from a Pennsylvania resident pays Pennsylvania inheritance tax even though California levies none, and moving after the death changes nothing because the liability is fixed at the date of death. Only six states still charge an inheritance tax on recipients.
Why do beneficiaries of the same estate pay different amounts?
Because state inheritance tax is set by relationship, not by amount. Surviving spouses are exempt everywhere, children and direct descendants are usually exempt or taxed at a low rate, siblings pay more, and unrelated beneficiaries such as unmarried partners or friends generally face the top bracket. The same estate can produce very different bills depending on who inherits, which is why the relationship field changes the result above.