What states have an inheritance tax?

Iowa (phasing out by 2025), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Rates vary by relationship: spouses and children often exempt; distant relatives pay highest rates up to 16-18%.

Is inheritance tax the same as estate tax?

No. Estate tax is paid by the estate before distribution. Inheritance tax is paid by the recipient. Maryland has both. Federal government has only estate tax — no federal inheritance tax.

How can I reduce inheritance tax for heirs?

Strategies include gifting during life within the annual exclusion, using trusts, relocating to a no-inheritance-tax state, or making charitable bequests.

Inheritance Tax Estimator

Estimate inheritance tax liability by state. Only 6 states impose inheritance tax (Iowa phasing out, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Federal estate tax is separate.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Estimate inheritance tax liability by state. Only 6 states impose inheritance tax (Iowa phasing out, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Federal estate tax is separate. Use the inheritance tax result to inform your calculation.

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Frequently Asked Questions

What states have an inheritance tax?

Is inheritance tax the same as estate tax?

How can I reduce inheritance tax for heirs?