Estate Tax vs. Inheritance Tax: Who Pays and Where

A calm, current guide to the federal rule, state taxes, and the facts that determine who files or pays.

The short answer. Estate tax and inheritance tax are two separate legal systems, not options a family chooses between. An estate tax falls on the estate or the transfer itself and is normally paid from estate assets before anything is distributed. An inheritance tax is imposed under state law by reference to what a particular beneficiary receives and how that person was related to the decedent. This page is written for whoever is handling the estate and for beneficiaries trying to understand their own position; where the two roles differ, the page says so. The first practical step is the same either way: confirm the rule for the year of death on the IRS estate and gift tax page and on the tax agency page for the decedent's state.

Federal estate tax, a state estate tax, a state inheritance tax, more than one, or none may apply. As of August 3, 2026, the federal government, 12 states, and the District of Columbia impose an estate tax, and five states impose an inheritance tax. Which of them reaches a particular estate depends on the facts: the decedent's state of domicile, where any real or tangible property is located, the date of death, the size and composition of the estate, and each beneficiary's relationship. For most estates the answer is that none of them apply, and confirming that is a short piece of work rather than a long one.

What needs attention now is gathering those facts and preserving records of value. Calculating, filing, and paying come later, usually with help. If the estate is near a threshold, touches more than one state, or involves gifts, trusts, a business, or a non-citizen, get a scoped review from an estate-tax attorney or a CPA before anyone distributes anything.

Where to start, depending on the facts

• Start with the state tax agency for the decedent's state of domicile if you do not yet know whether that state has an estate tax, an inheritance tax, both, or neither — that official page, not a national summary, governs.
• Add the tax agency of any other state where the decedent owned real estate or tangible property, because a state can reach property located there no matter where the decedent lived.
• Start with the county register of wills or probate clerk if the decedent was domiciled in an inheritance-tax state, since the return and payment often run through that office.
• Start with the IRS page for the year of death if the estate may approach the federal exclusion, or if a spouse died earlier and an unused exclusion may still be transferable.
• Don't choose yet — pause and get professional review if domicile is unclear or contested, the estate is close to a threshold, or it holds a business, farm, trust interest, or foreign property.
• Confirm the procedure and the correct office with the probate court clerk or register of wills in the decedent's county before filing anything, and involve a probate attorney or an estate CPA before any distribution if a tax filing or payment question is still open.

Contents

• What decides the answer
• Estate tax versus inheritance tax, side by side
• What to do now, soon, and later
• Does an estate or inheritance tax filing apply at all?
• State estate and inheritance taxes by jurisdiction
  • Which states have an estate tax
  • Which states have an inheritance tax
  • States with neither tax
• The federal estate tax in context
• Who files, who pays, and where personal liability attaches
• Two situations and what changes
• Other taxes that are not estate or inheritance tax
• Choosing the right kind of help
• Questions people ask
• Your next step
• About this page
• Sources and last verified date

What decides the answer

Gather these seven facts before anyone tries to calculate anything. They are what an official page, a return, or a professional will ask for first, and everything else on this page runs off them. This guide calls them the seven facts.

Fact to gather	Why it changes the answer
Decedent's state of domicile at death	Domicile is the state a person treated as their permanent home, which is not always where they died or last lived. It is the primary jurisdictional gate and usually decides which state's estate or inheritance tax system applies at all.
Location of real and tangible property	A state can reach real estate and tangible property located there even when the decedent lived elsewhere, which can add a second filing.
Date of death	Thresholds, rate schedules, forms, and deadlines are set by the date of death, not by the year you are doing the work.
Approximate gross estate, and what is counted	Screening uses the gross estate, which is broader than the probate estate. Taxable estate is a later, different calculation.
Each beneficiary's relationship to the decedent	Inheritance tax rates and exemptions are set by relationship class defined in state law, not by family labels.
Citizenship and residency status	Non-citizen spouses and non-resident decedents follow different federal rules and generally require specialist review.
Prior taxable gifts, prior returns, and a predeceased spouse's filings	Lifetime gifts and a deceased spouse's unused exclusion can change whether a federal return is required or worthwhile.

You do not need account numbers, Social Security numbers, or exact balances to answer these. Approximate values and a list of what the decedent owned, and where, are enough to identify which official pages to open.

Estate tax versus inheritance tax, side by side

	Federal estate tax	State estate tax	State inheritance tax
What is measured	The federal taxable estate under federal rules	The estate or transfer under that state's own rules	What a beneficiary receives, under that state's relationship and value rules
Who normally files	The executor or personal representative, on Form 706	Usually the personal representative, on the state's own return	Varies: the personal representative, the beneficiary, or both, often through a county office
Who normally bears the cost	The estate, before distribution	The estate, before distribution	The beneficiary's share, though state mechanics vary
Main gates	Date of death, gross estate, prior gifts, citizenship or residency, portability	Domicile, property location, date of death, that state's threshold and deductions	The decedent's connection to the state, property location, date of death, beneficiary relationship, amount
Does the beneficiary's relationship change the rate	Not directly; marital and charitable transfers are treated separately	Generally no, though marital and charitable provisions vary by state	Yes — relationship class is usually the main driver of rate and exemption
Threshold logic	One exclusion amount per decedent, set by year of death	Set by each state; several are far below the federal amount	Often no estate-level threshold; exemptions attach to the beneficiary
Where the deadline comes from	Federal law: nine months from the date of death	Each state's own statute and return instructions	Each state's own statute and return instructions, often administered through a county office
Official starting point	IRS estate tax pages and the Form 706 instructions	The state tax agency and its current return	The state tax agency, the county register of wills or probate clerk, and the current return

The state deadlines vary widely, and each one is listed with its jurisdiction in the two tables further down this page.

Maryland is the one state that currently imposes both systems, so a Maryland estate may face a state estate tax question and a separate inheritance tax question at the same time. That does not mean most Maryland estates pay both: the two have different thresholds, different exemptions, and different filers.

What to do now, soon, and later

Now. Write down the seven facts and preserve anything that supports a date-of-death value — statements, appraisals, tax assessments — because those records get harder to reconstruct later.

Soon. Open the IRS page for the year of death and the tax agency page for the decedent's state, plus any other state where property sits. If any trigger in Choosing the right kind of help is present, add tax review to the administration plan rather than trying to resolve it alone.

Later. Return preparation, elections, valuation, payment, apportionment between states, and any communication to beneficiaries about amounts follow, usually with professional help.

Only if applicable. Portability, a non-citizen spouse or non-resident decedent, property in more than one state or country, a closely held business or farm, trusts, prior taxable gifts, or a disputed domicile.

Do not calculate a tax, promise a beneficiary a number, or distribute assets based on a general article, including this one.

Does an estate or inheritance tax filing apply at all?

Work through the four screens in order. Each one ends in "verify" or "get review," not in a final answer, because only the current official source for that jurisdiction and date of death can produce the actual result.

Screen one: the federal screen. Compare the approximate gross estate, plus any prior taxable gifts, against the federal basic exclusion amount for the year of death. For deaths in 2026 that amount is $15,000,000 per person, and the top federal rate is 40 percent, as published by the IRS. Most estates fall well below it. An estate below the amount may still choose to file to preserve a deceased spouse's unused exclusion, which is a separate decision, explained further down this page.

Screen two: the state estate tax screen. Identify the decedent's state of domicile and check whether it appears in the estate tax table on this page. Then do the same for every state where the decedent owned real estate or tangible personal property, because several of those states tax property located within their borders even for a non-resident decedent, usually through an apportionment calculation. A state return can be required even when no federal return is, and several states still want a completed federal Form 706 attached to their own — a federal return prepared for the state's use even though it is never filed with the IRS. New York and the District of Columbia both say so on the pages linked in the table, and Connecticut requires a return from every estate whether or not tax is owed.

Screen three: the inheritance tax screen. Check whether the decedent's domicile — or the location of the property — is Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania, the five inheritance tax states as of August 3, 2026. If it is, the next question is not the size of the estate but the relationship class of each beneficiary under that state's law. A close relative may be fully exempt while a niece, a stepchild's spouse, a friend, or an unmarried partner is taxed from a low threshold or from the first dollar.

Screen four: the professional-review screen. If domicile is unclear, more than one state is involved, valuation is genuinely uncertain, or the estate is near any threshold, stop screening and get review. Being near a threshold matters more than being over one, because gross estate, deductions, and prior gifts all move the number.

Probate estate versus gross estate

These two terms describe different things, and confusing them is the most common reason a screening result comes out wrong. The probate estate is what passes under the will or under state intestacy law and through the court. The gross estate used for tax screening is broader: it generally includes property that passes outside probate, such as jointly held property, accounts with a beneficiary or transfer-on-death designation, life insurance the decedent controlled, and property in a revocable trust. That is why an estate that "avoids probate" entirely can still have a federal or state filing question, and why a will cannot override a beneficiary designation. The Form 706 instructions set out what the federal gross estate includes; each state defines its own base separately.

Verification status for this table: Verified for the federal gross-estate categories, which come from the Form 706 instructions. Partial for the state-by-state treatment of joint property, beneficiary-designated accounts, and life insurance, which differs by state and must be read from that state's own return instructions rather than assumed from the federal rule.

Category	What it covers	Who controls it, and is the court involved	What it changes for the tax screen
Probate assets	Property in the decedent's sole name with no beneficiary designation	The personal representative, once the court recognizes that authority	Included in the gross estate; also drives the court timeline and accounting
Joint property with survivorship	Real estate and accounts held jointly with a right of survivorship	Passes to the surviving owner by operation of law; no court step	Often partly or wholly included in the gross estate; state rules vary
Beneficiary-designated accounts	Retirement accounts, transfer-on-death and payable-on-death registrations	The named beneficiary, through the institution's own claim process	Generally included in the gross estate; some states tax these for inheritance tax
Life insurance	Proceeds payable to a named beneficiary	The insurer pays the beneficiary directly	Included federally when the decedent held ownership rights; state treatment varies
Revocable trust property	Assets titled to a living trust	The successor trustee, under the trust document	Generally included in the gross estate even though probate is avoided

The five outcomes this screen produces

The screen ends in one of the five outcomes below. None of them is a calculation. Each one is described in the same seven fields, so two outcomes can be compared directly.

Outcome 1 — No death-transfer tax filing indicated. The most common result, and a complete answer rather than an incomplete one.

• When it applies: the decedent was domiciled in a state with neither tax, owned no real or tangible property in a state that has one, and the gross estate plus prior taxable gifts is well below the 2026 federal exclusion.
• Deadline exposure: none from this outcome. Income tax deadlines run on their own calendar.
• Who bears the cost: nobody. Screening is free.
• Personal liability exposure: low, but not zero — a representative who distributes on an undocumented assumption is carrying that assumption alone.
• Evidence confidence: varies by state — verify. The list of states with neither tax is derived rather than sourced state by state, so confirm the domicile state on its own agency page.
• First action: confirm the domicile state and every property state on their own agency pages, and write down the date you checked.
• Get help when: domicile is unclear, or there were prior taxable gifts.

Outcome 2 — A federal filing question. Either the estate may exceed the exclusion, or a surviving spouse may want to preserve a deceased spouse's unused exclusion.

• When it applies: gross estate plus prior taxable gifts approaches or exceeds the federal exclusion for the year of death, or a spouse died earlier and portability was never elected.
• Deadline exposure: nine months from the date of death, with a six-month extension of time to file. Late filing or payment generally produces penalties and interest, and a missed portability election is not always final.
• Who bears the cost: the estate. Preparation fees are separate and may be quoted flat, hourly, or per return.
• Personal liability exposure: real — distributing before a federal tax obligation is settled can leave the representative personally responsible for it.
• Evidence confidence: federal — applies everywhere, from current IRS guidance for the year of death.
• First action: fix the exact date of death and a rough gross estate figure.
• Get help when: the estate is anywhere near the exclusion, or a portability election is in play.

Outcome 3 — A state estate tax question. A state taxes the estate itself, usually at a threshold far below the federal one.

• When it applies: the decedent was domiciled in, or owned real or tangible property in, one of the 12 states or the District of Columbia that impose an estate tax: Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Thresholds run from $1,000,000 in Oregon to $15,000,000 in Connecticut.
• Deadline exposure: set by that state, and ranging from six months after death in Connecticut to twelve in Oregon. Interest and penalties generally run from the original due date, and an extension of time to file is rarely an extension of time to pay.
• Who bears the cost: the estate, before distribution.
• Personal liability exposure: the same distribution risk as outcome 2, under that state's own rules.
• Evidence confidence: varies by state — verify on the row's linked source for the date of death.
• First action: open the row for the state, then the return it links to.
• Get help when: the computation is not a flat rate on the excess, which is common.

Outcome 4 — A state inheritance tax question. A state measures tax by what each beneficiary receives and how they were related.

• When it applies: the decedent was domiciled in, or owned property in, Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania. There is usually no estate-size threshold — a modest amount to the wrong relationship class can be taxable from the first dollar.
• Deadline exposure: set by that state, ranging from eight months after death in New Jersey to eighteen in Kentucky, with Pennsylvania's tax due at the date of death and Maryland's set by invoice from the register of wills. Two discount windows close early, at three months in Pennsylvania and nine in Kentucky.
• Who bears the cost: the beneficiary's share, though the estate may remit it first. The tax attaches to what that beneficiary received; it does not become a general personal debt beyond the transfer.
• Personal liability exposure: a representative who distributes before the tax is settled may be left responsible for it.
• Evidence confidence: varies by state — verify, and confirm the receiving office with the county register of wills or probate clerk.
• First action: identify each beneficiary's relationship class before estimating anything.
• Get help when: a class, an asset's taxability, or a discount date is unclear from the official source.

Outcome 5 — More than one of these, or a fact you cannot settle. A professional-review situation rather than a research project.

• When it applies: two or more jurisdictions, a contested or unclear domicile, a genuinely uncertain valuation, a business, farm, trust interest, or foreign property, or an estate near any threshold.
• Deadline exposure: every federal and state deadline named on this page still runs while the question is open. Deadlines do not pause for uncertainty.
• Who bears the cost: the estate normally pays for administration advice. Ask for the fee basis in writing.
• Personal liability exposure: highest here, because the exposure is to an obligation nobody has identified yet. Hold distributions.
• Evidence confidence: not resolvable on this page — the answer depends on facts a general guide cannot see.
• First action: gather the documents listed under Choosing the right kind of help.
• Get help when: now, rather than after another round of screening.

State estate and inheritance taxes by jurisdiction

Verified against the source linked in each row on August 3, 2026. The date of death controls which threshold, rate schedule, form, and deadline apply. Thresholds and rates below are orientation fields for deciding whether to open an official source. They are not calculation instructions; the current return and its instructions control the actual computation. Where a row says situs, that is the tax term for the state where property is legally located — the reason a state can reach a vacation home or a parcel of land inside its borders even when the decedent lived somewhere else.

The state tables below were verified against the source linked in each row on August 3, 2026; the date of death controls which threshold, rate schedule, form, and deadline apply.

Which states have an estate tax

Jurisdiction	2026 threshold or exclusion	Measured against, and what triggers it	Headline rate	Return due, and what happens if it is missed	Official source	Status
Connecticut	$15,000,000	Connecticut taxable estate; resident estates and Connecticut real or tangible property of a non-resident. A Connecticut return is required for every estate: Form CT-706 NT goes to the Probate Court when no tax is due	12% above the exclusion	6 months after death. An extension of time to file may be requested on Form CT-706/709 EXT, and an extension of time to pay is a separate request; interest and penalty apply to tax not paid on time	CT Department of Revenue Services	Verified
District of Columbia	$4,988,400	Gross estate; District nexus and a 2026 date of death	Graduated; use the current D-76 schedule	10 months after death, for both the return and the tax. Form FR-77 requests six more months to file — the District does not accept the federal Form 4768 — and does not extend the time to pay. Penalty runs at 5% a month to a 25% maximum, and interest at 10% a year compounded daily	DC Office of Tax and Revenue notice, DC estate tax information, and Form D-76 instructions	Verified with limitation
Hawaii	$5,490,000	Hawaii situs, with resident and non-resident apportionment; confirm the filing measure on the current Form M-6 instructions	10%–20%	9 months after death. A six-month extension of time to file is available through an approved federal Form 4768, or Hawaii Form M-68 where no federal return is required; it does not extend the time to pay, and penalty and interest are charged as though no extension had been granted	Hawaii Revised Statutes ch. 236E and Form M-6 instructions	Verified with limitation
Illinois	$4,000,000	Gross estate after including adjusted taxable gifts; Illinois resident, or Illinois situs property	Graduated, up to 16%; official calculator and form control	9 months after death. Extensions are granted on written application to the Attorney General using Form 700-EXT, and federal extensions are recognized; payment still goes to the State Treasurer	Illinois Attorney General and estate tax instruction fact sheet	Verified with limitation
Maine	$7,160,000	Federal gross estate, plus taxable gifts made within one year of death, plus Maine elective property; resident estates and Maine real or tangible property of a non-resident	8%–12%	9 months after death. Maine allows an automatic extension of time to file equal to any federal extension or six months, whichever is longer, with the total extension generally capped at eight months; it does not extend the time to pay. Penalties are waived on a showing of reasonable cause, and a petition for reconsideration is due within 60 days of an assessment	Maine Revenue Services, Form 706ME and Maine estate tax FAQ	Verified
Maryland	$5,000,000	Maryland nexus; a separate Maryland inheritance tax may also apply	Up to 16%	9 months after death, or by an approved extension date. Maryland law provides for interest and a late-payment penalty on tax not paid when due, and interest accrues even where an alternative payment schedule has been approved	Maryland Comptroller, filing the estate tax return, and Maryland estate tax tip sheet	Verified
Massachusetts	$2,000,000	Gross estate plus adjusted taxable gifts, computed under the Internal Revenue Code in effect on December 31, 2000 — an older federal definition Massachusetts still uses, which is why the Massachusetts figure can differ from the federal one; resident estates and Massachusetts real or tangible property of a non-resident	0.8%–16%	9 months after death; an automatic six-month extension of time to file is available on Form M-4768	Massachusetts DOR estate tax guide and Form M-4768	Verified
Minnesota	$3,000,000	Gross estate above the threshold, plus Minnesota nexus	13%–16%	9 months after death; an automatic six-month extension of time to file, and none to pay	Minnesota DOR filing requirement, rates, and due dates	Verified
New York	$7,350,000	Federal gross estate plus includible gifts; resident estates and New York real or tangible property of a non-resident. A completed federal Form 706 must accompany the New York return even when no federal return is required	Graduated, up to 16%; a cliff applies above the exclusion	9 months after death. An extension of time to file is available, and an extension of time to pay may be granted for up to four years where payment within nine months would cause undue hardship to the estate	NY Department of Taxation and Finance	Verified
Oregon	$1,000,000	Oregon resident, or Oregon real or tangible property	10%–16%	12 months after death for deaths on or after January 1, 2022. Form OR-706 EXT requests a six-month extension of time to file; it does not extend the time to pay, an extension of time to pay is granted only in special circumstances, and a 5% late-payment penalty applies	Oregon DOR estate transfer tax and Form OR-706 instructions	Verified
Rhode Island	$1,838,056	Gross estate; Rhode Island situs	Up to 16%; use the current RI-706 schedule	9 months after death, for the return, the tax, and the filing fee; interest and penalty accrue from that date	RI Division of Taxation	Verified with limitation
Vermont	$5,000,000	Federal gross estate plus federal adjusted taxable gifts made within two years of death; Vermont situs, with resident and non-resident apportionment	16% of the Vermont taxable estate above the exemption	9 months after death; a six-month extension of time to file, and none to pay	32 V.S.A. § 7442a and Form EST-191 instructions	Verified
Washington	$3,076,000 for deaths January 1 – June 30, 2026; $3,000,000 for deaths on or after July 1, 2026	Gross estate; Washington domicile, or Washington real or tangible property	10%–35% for deaths January 1 – June 30, 2026; 10%–20% for deaths on or after July 1, 2026	9 months after death; a six-month extension of time to file does not extend the time to pay, and interest accrues daily	Washington DOR estate tax tables and estate tax filing	Verified

Washington is the clearest example of why the exact date of death matters: two deaths six weeks apart in 2026 can be governed by different exclusion amounts and different rate schedules.

Which states have an inheritance tax

State	Exemption and class logic	Headline rates	Return due, and what happens if it is missed	What triggers it	Official source	Status
Kentucky	Close relatives exempt; a second class has a $1,000 exemption; all others $500	4%–16% for the second class; 6%–16% for all others	18 months after death where tax is due, with a 5% discount for payment within 9 months. The discount is gone after 9 months and cannot be recovered; interest and possible penalties run after 18 months	Relationship class, amount received, and Kentucky domicile or situs	Kentucky DOR inheritance tax	Verified
Maryland	Close relatives and specified entities exempt; other beneficiaries generally taxable	10% for non-exempt beneficiaries	There is no single statewide date. The register of wills assesses the tax and issues an invoice, and payment is due on that invoice. A 10% penalty and interest are added if payment is not made within 30 days of the first invoice, further interest at 60 days, and the balance goes to the Maryland Central Collection Unit at 90 days	Relationship and property; the separate Maryland estate tax may also apply	Maryland Comptroller and Maryland Register of Wills	Verified
Nebraska	For deaths in 2023 and later: $100,000 for close relatives, $40,000 for remote relatives, $25,000 for others; beneficiaries under 22 exempt	1% / 11% / 15% by class	12 months after death under Neb. Rev. Stat. § 77-2010; interest runs from that date. Failing to file an appropriate proceeding within 12 months adds a penalty of 5% a month to a 25% maximum — which the county court may abate for good cause	Relationship classification; the proceeding runs through the county court	Nebraska DOR legislative changes and Neb. Rev. Stat. § 77-2010	Verified
New Jersey	Class A exempt; Class C exempt on the first $25,000; Class D has no general exemption	Class C 11%–16%; Class D 15%–16%	8 months after death, for both the return and any tax due. Form IT-EXT extends the time to file only — there is no extension of time to pay — and interest runs at 10% a year on tax still unpaid after eight months	Beneficiary class and property; New Jersey has no estate tax for deaths after 2017	NJ Division of Taxation rates and filing requirements	Verified
Pennsylvania	0% for a surviving spouse and for a parent inheriting from a child 21 or younger; relationship classes apply; charities exempt	4.5% lineal descendants and ancestors; 12% siblings; 15% others	Due at death and delinquent 9 months later, with a 5% discount for payment within 3 months. Interest is charged on any tax still unpaid after the delinquency date, and a penalty may apply for failure to file	Relationship, Pennsylvania property, and date of death	PA Department of Revenue	Verified

Recently repealed — Iowa: no inheritance tax for deaths on or after January 1, 2025, per the Iowa Department of Revenue. Deaths before that date remain under the rules then in effect, so the date of death still decides.

States with neither tax

Thirty-four states impose neither a state estate tax nor a state inheritance tax. Iowa joined this group for deaths on or after January 1, 2025.

Alabama · Alaska · Arizona · Arkansas · California · Colorado · Delaware · Florida · Georgia · Idaho · Indiana · Iowa · Kansas · Louisiana · Michigan · Mississippi · Missouri · Montana · Nevada · New Hampshire · New Mexico · North Carolina · North Dakota · Ohio · Oklahoma · South Carolina · South Dakota · Tennessee · Texas · Utah · Virginia · West Virginia · Wisconsin · Wyoming

Status: Verified with limitation. This list is the complement of the two tables above, which together cover every U.S. jurisdiction that imposes one of these taxes as of August 3, 2026. It is derived from that completed review rather than sourced separately for each of the 34 states, so confirm it on the decedent's own revenue department page before relying on it — the IRS maintains a directory of state government and revenue department websites that names and links each state's tax agency. A federal filing question can still arise in any of these states, and property the decedent owned in a taxing state can still be reached by that state.

How these tables were built

Coverage is all 51 U.S. jurisdictions: every state and the District of Columbia that currently imposes a state estate tax or a state inheritance tax appears as a row, the state that recently repealed one appears with its repeal date, and the remaining 34 are named above. Every taxing row is sourced to a statute, a state tax agency, or an official state page; independent and news sources were used only to find questions, never to establish a rule. Verified means the linked official source supports the threshold, the rate structure, the trigger, and the due date and its consequences as stated on the access date. Verified with limitation means the official source supports the threshold and general structure, but the actual computation depends on a current return, schedule, or calculator that must be opened for the specific date of death — this applies to the District of Columbia, Hawaii, Illinois, and Rhode Island rows, and to the derived list of states with neither tax. No consequential blank is filled from an unsourced summary; where a field could not be confirmed on the source reviewed, the cell says so and routes to the return or office that governs it rather than being estimated. Version 1.0, published August 3, 2026; this is the first published version, so there is no prior changelog entry. These tables are reviewed before each publication, no later than October 1, 2026, and again on any legislative or form change, and any change to a threshold, rate, trigger, due date, or status will be recorded here with its date.

The federal estate tax in context

For deaths in 2026, the federal basic exclusion amount is $15,000,000 per person and the top federal rate is 40 percent. That figure is set by year of death, so an estate is measured against the amount in effect on the date the person died, not the amount in effect when the return is prepared. The amount is set by statute and adjusted for inflation in later years, so do not carry the 2026 figure forward to a 2027 death — check the amount for the applicable year.

A federal estate tax return, Form 706, is generally due nine months after the date of death, and an automatic six-month extension of time to file is available by filing Form 4768 on or before that date. An extension of time to file is not an extension of time to pay; the IRS expects the estimated correct amount to be paid by the original due date, and filing or paying late generally produces penalties and interest. An extension of time to pay is a separate request, is not automatic, and is worth asking about before the due date rather than after.

An estate below the exclusion sometimes files anyway. To transfer a deceased spouse's unused exclusion to the surviving spouse — portability, or the DSUE amount — the estate must file a timely Form 706 making the election. Nothing about this is automatic, and a married couple's exclusion is not simply doubled by operation of law. Missing that deadline is not always final: where the estate had no federal filing requirement of its own, the IRS allows the election to be made under a simplified method on a complete and properly prepared Form 706 filed on or before the fifth anniversary of the date of death, with a required notation on the return and no user fee. If a spouse died in the last five years and no return was filed, that is worth raising with a CPA or an estate-tax attorney rather than assuming the exclusion is gone. Whether the election is worth making at all depends on the surviving spouse's own assets, prior gifts, and the deadline, which is a decision for a professional rather than an article. The federal election does not carry over to a state estate tax, and no state should be assumed to follow the federal rule.

Estates of people who were not U.S. citizens or not U.S. residents follow a different set of rules and a different return, and transfers to a non-citizen spouse do not receive the same unlimited marital deduction. Those situations need specialist review rather than a general guide.

Finally, the federal figure tells you very little about state exposure. Several state thresholds sit below $5,000,000, one sits at $1,000,000, and inheritance tax can apply to a modest amount received by the wrong relationship class. Clearing the federal threshold does not close the question.

Who files, who pays, and where personal liability attaches

Two different jobs get confused here. The personal representative administers the estate, files returns owed by the estate, and pays what the estate owes from estate assets. A beneficiary receives property and, in an inheritance-tax state, may be the person the tax is measured against. Those roles can overlap in one person, but the duties are not the same.

When they do overlap — the usual case — there is a conflict worth naming out loud. In an inheritance-tax state, the person deciding when to distribute is often the person whose own share bears the tax, and in every state a representative who delays a distribution is also delaying their own. Neither is improper. Both are reasons to write down the reasoning and to put a distribution decision in front of the estate's attorney or CPA rather than making it alone.

Being named executor in a will does not by itself create authority to act. Until the court issues letters — or, for a non-probate asset, until the institution recognizes the person's authority — a bank, insurer, or tax agency may not accept a filing or release information. Tax deadlines run from the date of death regardless, which is one reason the appointment step matters early. If probate itself is the open question, see how probate works; that court process and these tax systems run on separate tracks.

Federal law has an answer for the gap in between. A surviving spouse who inherited everything by beneficiary designation or joint title can still file a federal return without being appointed by any court. The Form 706 instructions provide that if no executor is appointed, qualified, and acting in the United States, every person in actual or constructive possession of any of the decedent's property is treated as an executor and must file a return. Several states use a similar rule for their own returns. It is a filing rule, not a general grant of authority over the estate, so confirm what the court and the institutions require before acting on anything else.

There is no universal deadline across these systems and no universal answer about who signs. The nine-month figure is federal; each state sets its own, from six to eighteen months depending on the state and the tax, and the state tables on this page carry them alongside the thresholds.

One practical caution, and it is the reason final distributions are the step to hold rather than hurry. A personal representative who distributes estate assets before a federal tax obligation is settled can be held personally responsible for the unpaid amount, up to the value distributed. IRS Publication 559 states the exposure directly — where an estate is insufficient to pay all debts, debts due to the United States are paid first, and the personal representative is personally responsible for the tax liability if the representative had notice of the obligation or failed to exercise due care in determining whether one existed before distributing. One thing that rule does not mean: family members are generally not personally liable out of their own money for a decedent's debts. Debts are paid from estate assets, and where the estate is insufficient, most unsecured debt goes unpaid — with real exceptions for co-signed and joint obligations, community property, and some state provisions, which are worth checking before anyone pays a collector. If the estate is insolvent — more debts than assets — that federal priority rule is the one that matters most, because paying other creditors or beneficiaries ahead of it is exactly where a representative's personal exposure arises. An insolvent estate is an attorney question rather than a self-service one, and it is a reason to stop distributions entirely until someone has looked at the order of payment. The same publication describes the representative's protection: after the relevant returns are filed, a representative can request a discharge from personal liability on Form 5495, and is discharged if the IRS does not respond within nine months or if the amount identified is paid. Both the exposure and the discharge are worth raising with the estate's attorney or CPA before any distribution. If money has already gone out and a filing question then surfaces, that is a conversation to have now rather than at closing — the options narrow as time passes, but they are wider than they will be later.

Two situations and what changes

These are illustrations of how the gates change the next action. Neither produces a tax amount, and neither is a conclusion about any actual estate.

A modest estate, a Pennsylvania decedent, and a sibling who inherits. The estate is nowhere near the federal exclusion, which tempts everyone to stop. Pennsylvania's inheritance tax does not have an estate-size threshold, and the rate depends on the relationship: a sibling is in a different class than a child. The first official source is the Pennsylvania Department of Revenue inheritance tax page, and the return is filed with the register of wills in the county where the decedent lived. Our guide to Pennsylvania inheritance tax walks through that state's relationship classes, discount window, and filing route in more detail. The professional trigger here is modest — a question about whether a particular asset is taxable, or about the discount window that closes at three months, is worth an hour with a Pennsylvania attorney or CPA rather than a guess.

A Washington death in 2026 with property in two states. The exact date of death decides which Washington exclusion amount and which rate schedule apply, because both changed mid-year, and the out-of-state property raises a separate question about whether that state taxes property located there. Two jurisdictions plus a mid-year change is a review situation, not a self-service one.

Other taxes that are not estate or inheritance tax

Several questions that feel like "inheritance tax" are actually different systems, and mixing them together is how families end up with the wrong expectation. Each row below is taxed under its own rules, by its own authority, on its own timetable.

System	What it taxes	Who it falls on	Where to look
Income tax on the inheritance itself	Nothing, in most cases — receiving an inheritance is generally not treated as income to the recipient for federal income tax purposes	Generally no one	IRS Publication 559
Estate income tax	Income the estate earns after the death	The estate, or beneficiaries who receive that income	IRS Publication 559, which also covers the decedent's final individual return
Basis and gain on a later sale	Gain when inherited property is sold; basis is generally fair market value at the date of death, subject to alternate valuation, consistent-basis reporting, and other exceptions	The person who sells	IRS Publication 551
Inherited retirement accounts	Distributions from an inherited IRA or employer plan, under rules that turn on plan type, beneficiary category, and date of death	The beneficiary who takes the distribution	Inherited retirement account rules
Property tax	Real estate the estate holds, administered locally	The estate, and later the new owner	The county or municipal assessor

Choosing the right kind of help

Everything above can be done with free official sources. This section is for what to do when those sources cannot close the question — after they have been checked, not instead of checking them.

When to pause and get professional review

Any one of these is a reason to stop and get a scoped review rather than continue screening:

• The estate is at, near, or above any federal or state threshold.
• More than one state is involved, through domicile, property, or both.
• Domicile is unclear or contested — the person moved, split the year, or kept ties in two states.
• Real or tangible property sits outside the domicile state, or outside the country.
• The decedent or a spouse was not a U.S. citizen, or was not a U.S. resident.
• There were prior taxable gifts, or a predeceased spouse whose unused exclusion may still be available.
• The estate holds a trust interest, a closely held business, a farm, or assets that are hard to value.
• A beneficiary's class or a filing deadline is genuinely unclear from the official source.

Bring the date of death, evidence of domicile, an inventory of assets by title and location, beneficiary relationships, any prior gift or estate tax filings, the will or trust, and any existing valuations. A first meeting is more useful with those in hand, and it usually costs less.

Which kind of help fits which situation

• Best for confirming what a state requires: the decedent's state tax agency page and, in an inheritance-tax state, the county register of wills or probate clerk. Free, authoritative, the right first stop. Not ideal for deciding which of two states was the decedent's domicile — no agency resolves that for you.
• Best for preparing and filing a return: a CPA or enrolled agent who prepares estate tax returns, not only individual income tax returns. Ask for the fee basis in writing. Not ideal when the real question is legal — who inherits, whether an election is available, or how to handle a dispute.
• Best for legal questions about nexus, elections, or a contested issue: an attorney licensed in the decedent's state whose practice includes estate tax, ideally offering a scoped engagement. Not ideal as a substitute for return preparation if the firm does not prepare returns — ask directly.
• Best for value questions: a qualified appraiser engaged for date-of-death value on real property, a business interest, a farm, or a collection. Not ideal for anything but valuation, and not a substitute for the return.
• Best when the estate cannot pay by the due date: ask the agency about an extension of time to pay before the due date passes, and treat it as a separate request from an extension of time to file. It is not automatic anywhere, and terms differ — New York, for example, may grant up to four years where payment within nine months would cause undue hardship to the estate. Not ideal as a substitute for advice about whether assets must be sold.
• Best when cost is the obstacle: a scoped engagement limited to one open question — a single return, a single election, an opinion on domicile — usually costs a fraction of full administration. Not ideal when several issues are unresolved at once, which is where one broader engagement is cheaper than repeated small ones.
• Best when the facts are not settled: pause, get a scoped review, and hold distributions. Pausing is a legitimate choice, not a failure to decide.
• Not the right fit for this task: a general financial adviser standing in for return preparation or legal analysis. Investment questions come later, and planning after the tax questions are clear is a different conversation.

Situation, next move, and what to confirm

If this describes the estate	Next move	Confirm before you engage or pay
Decedent lived and owned everything in one state with no estate or inheritance tax, and the estate is far below the federal amount	Document the screen and move on; no death-transfer tax filing is indicated, though income tax filings may still be required	Is this state's status confirmed on its own tax agency page for this date of death? Are there assets in another state? Is a final income tax return still due?
Decedent lived in an inheritance-tax state, or owned property in one	Open that state's inheritance tax page and identify each beneficiary's class; the county office often receives the return	Which office receives the return? What is the payment deadline and any discount date? Which assets are taxable in this state? Who is responsible for filing — the estate or each beneficiary?
Everything passed to a surviving spouse by joint title or beneficiary designation, and no one has been appointed by a court	A federal return can still be required or worthwhile; under the Form 706 instructions a person in possession of the property may file without a court appointment	Is a portability election available, and is it worth making given the survivor's own assets? Does any state where property sits require its own return? Who signs, and in what capacity?
Estate is near a state or federal threshold, spans two states, or holds a business, farm, or trust interest	This is a professional-review situation: engage an estate-tax attorney or a CPA with estate return experience before distributions	Are you licensed or credentialed for the decedent's state? Have you prepared returns for this state? What is the fee basis — flat, hourly, or per return? What is not included in that fee?
The estate may not have enough liquid assets to pay a tax that is due	Ask the agency about an extension of time to pay before the due date, as a separate request from an extension of time to file, and hold distributions meanwhile	What does this state allow, and on what terms? Does interest keep running? Must assets be sold, and who decides?
Authority to act has not been established yet, or the court process itself is disputed	Resolve appointment and authority first; deadlines run from the date of death either way. See when probate legal help may be needed	Who currently has authority to sign a return? What does the court require to establish it? Does any deadline fall before appointment is likely?

Use one scorecard for every option: the questions in the row that matches the estate, asked of whoever you are considering — a CPA, an attorney, or an appraiser — in the same order every time. Comparing different kinds of help with different questions is how a mismatch happens.

Questions people ask

Can an estate tax and an inheritance tax both apply?

Yes, because they are separate systems. Maryland is the one state that currently imposes both, so a Maryland estate can face an estate tax question and a separate inheritance tax question — though many Maryland estates meet neither, since close relatives are generally exempt from the inheritance tax and the estate tax threshold is well above most estates. Separately, a federal return and a state return can both be required for the same estate. A state filing is never a substitute for a federal one, or the reverse.

Does the state where I live as a beneficiary decide anything?

Usually not, for these taxes. Inheritance tax generally follows the decedent: whether the decedent was domiciled in a taxing state, whether the property sits there, and how you were related. A beneficiary living in Ohio can owe Pennsylvania inheritance tax on a share of a Pennsylvania estate, and a beneficiary living in Pennsylvania can owe nothing on a share of an estate from a state with no such tax. Your own state may matter later, for income tax on what the inherited assets earn — a different question.

Is there a federal inheritance tax, and is an inheritance taxable income to me?

There is no federal inheritance tax. Inheritance taxes exist only at the state level, in five states: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. The federal exclusion — $15,000,000 for deaths in 2026 — is a threshold for the estate's federal filing and tax, not a per-person amount a beneficiary can receive tax-free, and an estate far below it can still face a state estate tax or a state inheritance tax that applies from the first dollar for some relationship classes. Receiving an inheritance is generally not treated as income to you for federal income tax purposes either, but several related things can be taxable: income the estate earns after the death, distributions from an inherited retirement account, and gain when you later sell inherited property. For that last one, basis is generally the fair market value at the date of death, subject to exceptions. This is a common place for a costly assumption, and it is worth confirming before you sell anything.

How long does the tax side take before an estate can be distributed?

There is no universal answer, and the honest one is that the timeline is set by the slowest dependency. Those dependencies are the court's appointment of the personal representative, the state's creditor claim period, valuation and appraisal, the sale of any real property, the return deadlines themselves, and any dispute. Federal review of a filed return and any state clearance or lien release take their own time on top of that. Many personal representatives hold final distributions until these are resolved, which is a question for the estate's attorney rather than a fixed number of months.

What does the tax side cost?

Four different costs get blended together and should not be. The tax itself is paid from estate assets, for an estate tax, or charged against a beneficiary's share, for an inheritance tax — and in the inheritance tax case it attaches to what that beneficiary received, rather than becoming a general personal debt of the beneficiary beyond the transfer. Professional fees are separate and may be quoted flat, hourly, or per return — ask for the basis in writing. Appraisal fees for date-of-death values are separate again. Court filing fees are set by the state or county and published in the court's own fee schedule; they belong to the probate process rather than the tax return, and how probate works covers them.

Your next step

Fill in the seven facts from What decides the answer. Then open two pages: the IRS page for the year of death, and the tax agency page for the decedent's state, plus one more for each additional state where property sits. If any trigger from the review list applies, add "obtain tax review" to the administration plan before any distribution. The executor checklist shows where this task sits among everything else you are carrying. And working through an estate often raises quieter questions about your own arrangements; when you feel ready — there is no hurry — our guide to estate planning for you walks through them at your own pace.

About this page

Estate Made Clear is an independent educational publisher. This page explains how these tax systems work and where the official sources are. It is general information, not legal or tax advice about any particular estate, and reading it does not create a professional relationship or substitute for a licensed attorney, CPA, or enrolled agent who can see the actual facts.

This page is written and maintained by the Estate Made Clear editorial team. Our basis for it is method rather than credentials: every state row is built from the governing statute, the state tax agency, or an official state form rather than from a secondary summary, and every consequential figure carries the source it came from and the date that source was checked. Every state row also carries a verification status explained under How these tables were built. This page has not yet had review by a qualified attorney or tax professional; when that review is completed, it will be credited here by name, role, and date. The tables are re-checked no later than October 1, 2026, and again on any legislative or form change. Corrections and source questions are welcome at hello@estatemadeclear.com.

How this page is funded: Estate Made Clear is supported by advertising and, on some pages, disclosed referral links. This page carries no sponsored placement and no paid provider links, nothing on it was paid for or reviewed by any company mentioned on it, and if a compensated link is added to this page, it will be disclosed here. Two pages on this site — the first-week checklist and the grief resources — are permanently free of both advertising and referral links.

Sources and last verified date

Last verified: August 3, 2026

Next review: October 1, 2026, and again on any legislative or form change.

• IRS releases tax inflation adjustments for tax year 2026 — Internal Revenue Service — 2026 basic exclusion amount of $15,000,000 for estates of decedents dying in 2026.
• What's new — Estate and gift tax — Internal Revenue Service — basic exclusion amount by year of death and current federal estate and gift tax notices.
• Filing estate and gift tax returns — Internal Revenue Service — nine-month Form 706 due date and the six-month filing extension, with payment treated separately.
• Frequently asked questions on estate taxes — Internal Revenue Service — portability of the deceased spousal unused exclusion requires a timely filed estate tax return, and the simplified late-election method available on or before the fifth anniversary of the date of death.
• Instructions for Form 706 — Internal Revenue Service — composition of the federal gross estate, including non-probate transfers, and the rule treating any person in actual or constructive possession of the decedent's property as an executor where none is appointed.
• Publication 551, Basis of Assets — Internal Revenue Service — basis of inherited property and its exceptions.
• Publication 559, Survivors, Executors, and Administrators — Internal Revenue Service — final income tax return and estate income tax boundary; personal responsibility of the personal representative for tax obligations before distribution, and discharge from personal liability on Form 5495.
• State government websites — Internal Revenue Service — directory naming and linking each state's revenue or taxation department.
• Estate and gift taxes — Connecticut Department of Revenue Services — Connecticut exclusion, rate, resident and non-resident gates, six-month due date, the Probate Court route for non-taxable estates, and extension and interest treatment.
• DC estate, inheritance and fiduciary tax information — District of Columbia Office of Tax and Revenue — District filing requirement measured on the gross estate, the ten-month filing and payment deadline, the Form FR-77 extension, and the interest rate.
• Notice of October 1, 2025 tax changes — District of Columbia Office of Tax and Revenue — District of Columbia 2026 exclusion amount.
• Form D-76 estate tax instructions — District of Columbia Office of Tax and Revenue — District late-filing and late-payment penalty of 5% a month to a 25% maximum, and daily compounded interest.
• Hawaii Revised Statutes chapter 236E — Hawaii State Legislature — Hawaii exclusion basis, rate schedule, and apportionment.
• Instructions for Form M-6, Hawaii estate tax return — Hawaii Department of Taxation — Hawaii nine-month due date, who must file, and the treatment of penalty and interest where an extension is granted. This is the most recent published version of the M-6 instructions reviewed; confirm against the current form for the date of death.
• Estate taxes — Illinois Attorney General — Illinois exclusion measured on the gross estate after adjusted taxable gifts, official calculator, and filing route.
• Estate tax instruction fact sheet — Illinois Attorney General — Illinois nine-month due date, Form 700-EXT extensions, recognition of federal extensions, and payment to the State Treasurer.
• Estate tax (Form 706ME) — Maine Revenue Services — Maine rate tiers by date of death and filing route.
• Estate tax FAQ — Maine Revenue Services — Maine 2026 exclusion amount, the filing measure, the nine-month due date, the automatic extension of time to file, and waiver of penalties for reasonable cause.
• Estate and inheritance tax information — Comptroller of Maryland — Maryland estate tax threshold and rate, and the separate Maryland inheritance tax rate and exemptions.
• Filing the estate tax return — Comptroller of Maryland — Maryland nine-month estate tax filing deadline.
• What you need to know about Maryland's estate tax — Comptroller of Maryland — Maryland filing within nine months or an approved extension date, and interest and late-payment penalty on tax not paid when due.
• Inheritance tax — Maryland Register of Wills — Maryland inheritance tax assessed by invoice from the register of wills, and the 30-, 60-, and 90-day penalty, interest, and collection consequences.
• Massachusetts estate tax guide — Massachusetts Department of Revenue — Massachusetts filing threshold, rates, and resident and non-resident treatment.
• Form M-4768, Massachusetts estate tax extension application — Massachusetts Department of Revenue — Massachusetts nine-month due date, automatic six-month filing extension, and who may file when no representative is appointed.
• Estate tax filing requirement — Minnesota Department of Revenue — Minnesota filing threshold.
• Estate tax rates — Minnesota Department of Revenue — Minnesota rate schedule.
• Estate tax due dates and extensions — Minnesota Department of Revenue — Minnesota nine-month due date and extension treatment.
• Estate tax — New York State Department of Taxation and Finance — New York basic exclusion amount by date of death, filing requirement, nine-month deadline, the federal return that must accompany the state return, and extensions of time to pay.
• Estate transfer and fiduciary income taxes — Oregon Department of Revenue — Oregon threshold, nexus, responsible filer, the 12-month due date for deaths on or after January 1, 2022, and extension treatment.
• Form OR-706 instructions — Oregon Department of Revenue — Oregon rate schedule and the 5% late-filing or late-payment penalty.
• Estate tax — Rhode Island Division of Taxation — Rhode Island threshold measured on the gross estate, situs rule, current RI-706 route, nine-month due date, and interest and penalty terms.
• 32 V.S.A. § 7442a — Vermont General Assembly — Vermont exemption and tax calculation.
• Form EST-191 instructions — Vermont Department of Taxes — Vermont filing measure, nine-month due date, and extension treatment.
• Estate tax tables — Washington Department of Revenue — Washington filing thresholds and rate schedules by date of death, including the 2026 split.
• Estate tax — Washington Department of Revenue — Washington gross-estate filing threshold, nine-month due date, and extension and interest treatment.
• Inheritance tax — Kentucky Department of Revenue — Kentucky beneficiary classes, exemptions, rates, eighteen-month filing deadline, and nine-month discount.
• 2022 Nebraska legislative changes — Nebraska Department of Revenue — Nebraska beneficiary classes, exemptions, and rates for deaths in 2023 and later.
• Neb. Rev. Stat. § 77-2010 — Nebraska Legislature — Nebraska twelve-month due date, interest from that date, the 5% monthly penalty to a 25% maximum for failure to file an appropriate proceeding, and county court abatement for good cause.
• Inheritance tax rates — New Jersey Division of Taxation — New Jersey beneficiary classes, exemptions, and rates.
• Inheritance tax filing requirements — New Jersey Division of Taxation — New Jersey eight-month return and payment deadline, the 10% annual interest rate on unpaid tax, and the Form IT-EXT filing extension with no extension of time to pay.
• Inheritance tax — Pennsylvania Department of Revenue — Pennsylvania rates by relationship, nine-month delinquency date, three-month discount, and interest on tax unpaid after delinquency.
• Iowa tax and fee descriptions and rates — Iowa Department of Revenue — no Iowa inheritance tax for deaths on or after January 1, 2025.