MARYLAND INHERITANCE AND ESTATE TAX · DEATHS IN 2026
Maryland inheritance and estate tax calculator
Maryland has both: an estate tax of 16% on the amount over $5,000,000, and a 10% inheritance tax on what nieces, nephews, other collateral heirs and friends inherit. Spouses, children, grandchildren, parents, siblings and charities are exempt from the inheritance tax. On a $6,000,000 estate with nothing left to a spouse or charity, Maryland estate tax is $160,000. If a niece or nephew inherits $100,000 of it, they owe $10,000 of inheritance tax, which is credited against the estate tax, so the estate pays $150,000. No federal estate tax is due on an estate under the $15,000,000 federal exclusion.
Tax on the estate
- Total estate and inheritance tax
- $160,000.00
- Federal estate tax
- $0.00
- Maryland estate tax
- $150,000.00
- Maryland inheritance tax
- $10,000.00
- Maryland exemption
- $5,000,000.00
- Inheritance tax credited
- $10,000.00
- Heir's class
- Collateral
Maryland and 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. Federal tax is figured after deducting the state tax.
| Estate | Federal estate tax | Maryland estate tax |
|---|---|---|
| $5,000,000 | $0 | $0 |
| $6,000,000 | $0 | $160,000 |
| $10,000,000 | $0 | $800,000 |
| $15,000,000 | $0 | $1,600,000 |
| $25,000,000 | $2,720,000 | $3,200,000 |
Maryland 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 |
|---|---|---|
| ExemptSpouse, Child, Grandchild, Great-grandchild, Parent, Grandparent, Brother or sister, Son- or daughter-in-law, Charity | $0 | $0 |
| CollateralNiece or nephew, Aunt or uncle, Cousin or other relative, Friend or unrelated person | $10,000 | $50,000 |
Maryland inheritance and estate tax questions
Does Maryland have an inheritance tax?
Yes. Maryland has both: an estate tax of 16% on the amount over $5,000,000, and a 10% inheritance tax on what nieces, nephews, other collateral heirs and friends inherit. Spouses, children, grandchildren, parents, siblings and charities are exempt from the inheritance tax.
How much is Maryland estate tax on a $6,000,000 estate?
With nothing left to a spouse or charity, a $6,000,000 estate owes $160,000 of Maryland estate tax and a $10,000,000 estate owes $800,000. Neither owes federal estate tax, which starts above $15,000,000.
How much inheritance tax does each heir pay in Maryland?
On a $100,000 inheritance, a spouse owes $0 and a niece or nephew $10,000. Each heir pays on their own share, and the rate depends on their relationship to the person who died.
Is life insurance subject to Maryland inheritance tax?
No. Life insurance paid to a named beneficiary is not subject to inheritance tax. The estate tax return is due nine months after death.
What the calculator leaves out
- The calculator assumes the decedent lived in the state and all property is there; property elsewhere reduces the tax by apportionment.
- A deceased spouse's unused Maryland exclusion is not added.
- Only the entered heir's inheritance tax is credited against the estate tax; inheritance tax paid by other heirs lowers it further.
- An inheritance over $1,000 is taxed in full; the $1,000 exemption is read as covering only inheritances of $1,000 or less.
- Maryland's estate tax and its inheritance tax both apply in 2026; a 2026 repeal bill did not pass.
- Life insurance paid to a named beneficiary is not subject to inheritance tax.
- A charity must be exempt under section 501(c)(3).
- 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.