Inheritance Tax Calculator

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 $13.99 million per individual (about $27.98 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 made the elevated federal exemption permanent at the $13.99M+ level, replacing the previous TCJA scheduled-sunset that would have dropped the exemption to ~$7M in 2026. Updated 2026-06-19.

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) to $13.99M (federal-aligned). For state-specific rates, see IRS estate tax overview and your state's revenue department. Updated 2026-06-19.

Last updated: June 2026