KENTUCKY INHERITANCE AND ESTATE TAX · DEATHS IN 2026
Kentucky inheritance and estate tax calculator
Kentucky has no estate tax, but it taxes what some heirs inherit. Spouses, children, grandchildren, parents, siblings, nieces and nephews are exempt; aunts, uncles, sons- and daughters-in-law and great-grandchildren pay 4% to 16%; cousins, friends and others pay 6% to 16%. A friend or other unrelated heir who inherits $100,000 owes $12,670 of Kentucky inheritance tax. A $5,000,000 estate owes no federal estate tax, which starts above $15,000,000.
Tax on the estate
- Total estate and inheritance tax
- $12,670.00
- Federal estate tax
- $0.00
- Kentucky inheritance tax
- $12,670.00
- Heir's class
- Class C
Federal estate tax by size of estate
The tax on an estate with nothing left to a spouse or charity and no lifetime taxable gifts.
| Estate | Federal estate tax |
|---|---|
| $5,000,000 | $0 |
| $10,000,000 | $0 |
| $15,000,000 | $0 |
| $20,000,000 | $2,000,000 |
| $25,000,000 | $4,000,000 |
Kentucky inheritance tax by heir
What one heir owes on an inheritance, by their relationship to the person who died.
| Heir's class | $100,000 inherited | $500,000 inherited |
|---|---|---|
| Class ASpouse, Child, Grandchild, Parent, Brother or sister, Niece or nephew | $0 | $0 |
| Class BGreat-grandchild, Son- or daughter-in-law, Aunt or uncle | $8,960 | $70,960 |
| Class CGrandparent, Cousin or other relative, Friend or unrelated person | $12,670 | $76,670 |
| Exempt charityCharity | $0 | $0 |
Kentucky inheritance and estate tax questions
Does Kentucky have an inheritance tax?
Yes. Kentucky has no estate tax, but it taxes what some heirs inherit. Spouses, children, grandchildren, parents, siblings, nieces and nephews are exempt; aunts, uncles, sons- and daughters-in-law and great-grandchildren pay 4% to 16%; cousins, friends and others pay 6% to 16%.
How much inheritance tax does each heir pay in Kentucky?
On a $100,000 inheritance, a spouse owes $0, an aunt or uncle $8,960, a friend or other unrelated heir $12,670 and a charity $0. Each heir pays on their own share, and the rate depends on their relationship to the person who died.
Does Kentucky have an estate tax?
No. Kentucky has no estate tax. Federal estate tax applies only to estates over $15,000,000.
Do nieces and nephews pay Kentucky inheritance tax?
Not for deaths in 2026. Nieces and nephews moved to the exempt Class A for deaths on or after January 1, 2026, under a law effective April 27, 2026. Before that they paid as Class B heirs.
What the calculator leaves out
- A charity is assumed to qualify for the KRS 140.060 exemption; other institutions are Class C.
- Nieces and nephews moved to the exempt Class A for deaths on or after January 1, 2026, under a law effective April 27, 2026.
- A great-grandchild is Class B.
- Kentucky has no estate tax.
- Inheritance tax is figured for the one heir you enter; each heir owes tax on their own share.
- Gift tax paid on lifetime gifts is not subtracted.
- The deduction for state death taxes (IRC 2058) counts the state estate tax and the entered heir's inheritance tax, not inheritance tax other heirs pay.
- A deceased spouse's unused exclusion (portability) is not added.
Enter the estate's value after debts and expenses. What you leave to a spouse or to charity is deducted in full, as the marital and charitable deductions allow for a U.S.-citizen spouse and a qualifying charity. Lifetime taxable gifts are added back for the federal tax. Federal tax uses the 2026 exclusion of $15,000,000 and rates up to 40%, after deducting state death taxes. These are estimates, not legal advice.