State estate and inheritance tax
Maryland estate and inheritance tax in 2026
Checked against state sources 2026-10-21 · Gregory Garone, CEPA®
Short answer: Yes, and Maryland is the only state with both taxes. Estates above $5 million owe estate tax of up to 16%, and property left to anyone outside the close family owes a flat 10% inheritance tax.
Maryland at a glance
| Tax type | Estate tax and Inheritance tax |
|---|---|
| Estate tax exemption, 2026 deaths | $5,000,000 |
| Top rate | 16% estate; 10% inheritance |
| Portability to a surviving spouse | Yes |
How the Maryland estate and inheritance tax works
- The estate tax exemption has been $5 million since 2019 and is not indexed for inflation.
- Maryland allows portability, so a surviving spouse can use the deceased spouse's unused Maryland exemption if it is elected on a timely return.
- The inheritance tax is 10% on property passing to anyone other than a spouse, children and other lineal descendants and their spouses, parents, grandparents, stepchildren, stepparents and siblings.
- Transfers of $1,000 or less to one person and transfers to charities are exempt from inheritance tax.
- The inheritance tax is collected by the county Register of Wills. Inheritance tax paid is credited against the estate tax.
Planning points
- A 2026 bill to repeal the estate tax (SB 211) received a hearing but was not enacted, so both taxes still apply.
- Leaving assets to nieces, nephews, friends or unmarried partners triggers the 10% inheritance tax, which life insurance or charitable gifts can sometimes avoid.
Common questions
Does Maryland have an estate and inheritance tax in 2026?
Yes, and Maryland is the only state with both taxes. Estates above $5 million owe estate tax of up to 16%, and property left to anyone outside the close family owes a flat 10% inheritance tax.
Do children pay Maryland inheritance tax?
No. Children and other lineal descendants, spouses, parents, grandparents, stepchildren, stepparents and siblings are exempt. Nieces, nephews and friends pay 10%.
Was the Maryland estate tax repealed in 2026?
No. Senate Bill 211 would have repealed it for deaths after June 30, 2026, but it did not advance past a committee hearing.
Sources and limitations
Other states
Planning around Maryland tax?
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