Estate Tax Calculator · Practical guide
Estate Tax vs Inheritance Tax: What's the Difference?
Estate tax comes out of the estate before heirs are paid; inheritance tax is charged to heirs — and only a few states impose it.
At a glance
Who Pays What
The estate tax is levied on the total value of a person's assets at death and is paid by the estate before anything is distributed. The federal government imposes it above a $13.99 million exemption (2026), at graduated rates from 18% to 40%. The inheritance tax is different: it is charged to each person who inherits, based on what they receive and their relationship to the deceased.
| Estate Tax | Inheritance Tax | |
|---|---|---|
| Who pays | The estate | Each heir |
| Based on | Total estate value | Amount each heir receives |
| Federal level | Yes, above $13.99M | No federal inheritance tax |
| State level | About a dozen states | A handful of states |
Interactive tool
Estate Tax Calculator
Enter your own values, then compare the result with the examples below.
Results
Where Inheritance Tax Applies
Only a few states — including Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania — currently levy inheritance taxes. Rates typically range from the low single digits up to about 15-18%, and surviving spouses are exempt everywhere, with children often exempt or taxed at the lowest rates. Distant relatives and unrelated heirs pay the most.
How They Can Stack
Maryland is notable for having both an estate tax and an inheritance tax. A large Maryland estate could owe state estate tax, federal estate tax above $13.99 million, and inheritance tax to certain heirs — all on the same wealth. Most Americans face none of the three: the federal exemption alone excludes the overwhelming majority of estates.
Estimating Your Federal Exposure
The calculator above estimates federal estate tax only. Enter the gross estate, subtract debts, funeral costs, charitable bequests, and marital deductions, and it applies the $13.99 million exemption and 18-40% brackets. For state inheritance tax, check the rules in the state where the deceased lived and where each heir lives.
Frequently Asked Questions
If I inherit money, do I owe inheritance tax?
Only if the deceased lived in (or owned property in) one of the few states with an inheritance tax, and even then surviving spouses are exempt everywhere and close family often pays little or nothing.
Is inheritance the same as income for income tax?
No. Inherited property is generally not taxable income at the federal level. You may owe capital gains tax later when you sell appreciated assets, usually with a stepped-up basis.
Can an estate owe both estate tax and inheritance tax?
Yes. Maryland imposes both, and a large estate there could also owe federal estate tax. Each tax has its own exemption and rate schedule.
Does the federal government tax inheritances at all?
The federal government taxes estates, not inheritances. Below the $13.99 million exemption, federal estate tax is zero regardless of who inherits.