Inheritance tax is a state-level tax that some beneficiaries must pay when they receive inherited assets — and only a few states still impose it in 2026. Unlike estate tax, which is paid by an estate ...

An inheritance can add to your finances, but taxes may reduce the amount that reaches you. Some states tax beneficiaries directly, while separate estate taxes may apply before assets are distributed.

An inheritance tax is levied when a beneficiary inherits assets from the estate of someone who died. There is no federal inheritance tax, but five states currently levy this tax: Kentucky, Maryland, ...

Maryland holds a unique position in the American tax structure as the only state in the U.S. that levies both an estate tax and an additional inheritance tax.. For residents and their heirs, this dual ...