Beneficiary Inheritance Tax Estimator
Estimate the inheritance tax a beneficiary may owe based on their relationship to the deceased, the value of the inherited assets, and the state in which the deceased resided. Note: The federal government does not impose an inheritance tax — only six U.S. states do.
Formula
Taxable Amount = max(0, Inherited Value − Exemption)
Inheritance Tax = Taxable Amount × (Tax Rate ÷ 100)
Net Received = Inherited Value − Inheritance Tax
Effective Rate = (Inheritance Tax ÷ Inherited Value) × 100
The exemption is the threshold below which no tax is owed. If the inherited value is less than or equal to the exemption, the tax is $0. Rates and exemptions are pre-filled based on the selected state and relationship, but can be manually adjusted.
Assumptions & References
- Only six U.S. states impose an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania (as of 2024).
- Iowa: Fully repealed for deaths on or after January 1, 2025. Lineal heirs were already exempt. (Iowa Code § 450)
- Kentucky: Class A (spouse, child, parent, grandchild) fully exempt. Class B (siblings, nieces/nephews) $1,000 exemption, 4–16%. Class C (others) $500 exemption, 6–16%. (KRS § 140)
- Maryland: 10% flat rate on non-exempt beneficiaries. Spouse, child, parent, grandparent, sibling, and stepchild are exempt. (MD Tax-General § 7-203)
- Nebraska: Spouse fully exempt. Immediate relatives $100,000 exempt at 1%. Remote relatives $40,000 exempt at 13%. Others $25,000 exempt at 18%. (Neb. Rev. Stat. § 77-2004)
- New Jersey: Class A (spouse, child, parent, grandchild) fully exempt. Class C (sibling) $25,000 exempt, 11–16%. Class D (others) no exemption, 15–16%. (N.J.S.A. § 54:34-1)
- Pennsylvania: Spouse and minor children fully exempt. Lineal heirs 4.5%. Siblings 12%. All others 15%. (72 P.S. § 9116)
- Graduated bracket rates are simplified to a representative flat rate for estimation purposes. Actual tax may differ.
- This tool does not account for deductions, credits, jointly held property rules, or federal estate tax (which applies to estates over $13.61 million in 2024).
- Always consult a licensed estate attorney or CPA for precise tax planning.