Free inheritance tax calculator. Estimate tax on inherited assets based on beneficiary relationship, state rates, and inheritance amount.
Unlike the federal estate tax which is paid by the estate, inheritance tax is paid by the beneficiary who receives the assets. Six U.S. states impose inheritance taxes: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
Inheritance tax rates depend on the beneficiary's relationship to the deceased. Surviving spouses are typically exempt. Direct descendants (children, grandchildren) often pay lower rates or are exempt. Siblings, other relatives, and unrelated beneficiaries face higher rates.
This calculator estimates inheritance tax based on the inherited amount, the beneficiary's relationship category, and typical state rate structures.
Legal professionals, business owners, and individuals alike benefit from transparent inheritance tax calculations when evaluating obligations, settlements, or compliance requirements. Bookmark this page and return whenever circumstances change so you always have current figures at your fingertips.
From contract negotiations to dispute resolution, having reliable inheritance tax numbers at your disposal strengthens your position and streamlines decision-making. Adjust the inputs to reflect your unique circumstances and run the calculation as many times as needed to cover every plausible scenario.
From contract negotiations to dispute resolution, having reliable inheritance tax numbers at your disposal strengthens your position and streamlines decision-making. Adjust the inputs to reflect your unique circumstances and run the calculation as many times as needed to cover every plausible scenario.
If you live in or inherit from someone in an inheritance tax state, understanding your potential tax liability helps with financial planning. The tax can range from 0% to 18% depending on your relationship and the state. Instant recalculation as you change inputs lets you model multiple scenarios quickly, giving you the data foundation needed for well-informed legal and financial decisions.
Inheritance Tax = (Inherited Amount − Exemption) × Rate by Relationship Spouse: Usually 0% Children/Direct Descendants: 0–4.5% Siblings: 5–12% Other Relatives: 6–15% Unrelated: 10–18%
Result: $47,500
Inherited $500,000 minus $25,000 exemption = $475,000 taxable. At the 10% sibling rate, the inheritance tax is $47,500.
Pennsylvania: 0% spouse, 4.5% children, 12% siblings, 15% others. Nebraska: 0% spouse, 1% direct, 11% remote, 15% other. Kentucky: 0% Class A (spouse/children), 4-16% Class B (nieces/nephews), 6-16% Class C (others). Rates and exemptions change — verify with current law.
Inherited IRAs and 401(k)s are subject to income tax on distributions regardless of inheritance tax. Non-spouse beneficiaries must generally distribute the entire account within 10 years under the SECURE Act. Plan withdrawals to manage tax bracket impact.
Maryland residents face both state estate tax (over $5M exemption) and state inheritance tax. Federal estate tax applies on top of state taxes for very large estates. Proper planning can minimize the combined burden through strategic use of exemptions and deductions.
Estate tax is paid by the estate before distribution. Inheritance tax is paid by the individual beneficiary after receiving their share. The estate tax is based on total estate value, while inheritance tax depends on who inherits and their relationship to the deceased.
Six states: Iowa (repealed for deaths after 2024), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Each has different rates and exemptions. If you live in one of these states or inherit from a resident, you may owe inheritance tax.
Yes, surviving spouses are exempt from inheritance tax in all states that impose it. Domestic partners and civil union partners may also be exempt depending on the state.
In most inheritance tax states, children and direct descendants either pay very low rates (1-4.5%) or are exempt. Pennsylvania taxes children at 4.5%. Nebraska taxes immediate relatives at 1%. Check your specific state's rules.
Strategies include transferring assets via trust, making lifetime gifts below exemption thresholds, purchasing life insurance (often exempt), relocating to a non-inheritance-tax state, or structuring bequests to exempt beneficiary categories. Use this calculator to model different scenarios and find the best approach.
Due dates vary by state, typically 9-12 months after the date of death. Some states offer discounts for early payment (e.g., Pennsylvania offers a 5% discount if paid within 3 months). Late payments incur interest and penalties.