Inheritance Tax Calculator 2025 β State Inheritance Tax by Relationship
Calculate state inheritance tax for Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Rates vary by your relationship to the deceased.
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Inheritance Tax Owed
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Effective Tax Rate
$0
Tax-Exempt Portion
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Net Inheritance After Tax
Inheritance Tax Details
How to Use This Inheritance Tax Calculator
Select the state where the deceased was domiciled (not your state of residence β inheritance tax is based on the deceased's state) and your relationship to them. The calculator applies the appropriate state exemptions, thresholds, and progressive rates based on the 2025 state inheritance tax laws.
The Formula
Taxable Inheritance = MAX(0, Inheritance β State Exemption for Your Relationship)
Inheritance Tax = Progressive state rates applied to taxable inheritance
Net Inheritance = Inheritance Amount β Inheritance Tax
Inheritance Tax = Progressive state rates applied to taxable inheritance
Net Inheritance = Inheritance Amount β Inheritance Tax
Example
Receiving $250,000 as an unrelated friend from a NJ estate:
NJ Class D (unrelated): 15% on first $700K, then 16%
No exemption for unrelated beneficiaries
Inheritance tax: $250,000 Γ 15% = $37,500
Net inheritance: $250,000 β $37,500 = $212,500
NJ Class D (unrelated): 15% on first $700K, then 16%
No exemption for unrelated beneficiaries
Inheritance tax: $250,000 Γ 15% = $37,500
Net inheritance: $250,000 β $37,500 = $212,500
Extended
State Inheritance Tax Comparison
Compare inheritance tax across all 6 states for different beneficiary relationships
Compare how much inheritance tax would be owed in each state for your inheritance amount and relationship.
State-by-State Inheritance Tax Comparison
| State | Your Relationship | Exemption | Rate | Tax Owed | Net Inheritance |
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Frequently Asked Questions
Which states have an inheritance tax?
As of 2025, six states impose an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Note that Maryland also has a state estate tax. Most other states have neither an estate nor inheritance tax. The federal government does not impose an inheritance tax β only a federal estate tax on the deceased's estate.
What is the difference between estate tax and inheritance tax?
An estate tax is paid by the deceased's estate before assets are distributed, based on the total estate value. An inheritance tax is paid by the person who receives the inheritance, based on the amount they receive. Some states have both; most have neither. Federal law has an estate tax but no inheritance tax.
Do spouses pay inheritance tax?
No. In all states with inheritance taxes, assets inherited by a surviving spouse are completely exempt. Most states also fully exempt assets inherited by lineal descendants (children, grandchildren) and often lineal ancestors (parents, grandparents). Inheritance taxes most commonly apply to more distant relatives and unrelated beneficiaries.
How do inheritance tax rates compare across states?
Rates vary significantly: Iowa has rates from 2% to 6%, Kentucky from 4% to 16%, Maryland up to 10%, Nebraska from 1% to 15% (starting 2023), New Jersey up to 16%, and Pennsylvania 4.5% (lineal) to 15% (non-relatives). Each state has different exemptions based on relationship to the deceased.
Can I reduce inheritance tax through estate planning?
Yes. Common strategies include: making assets joint-tenancy with heirs (reduces estate), annual gifting during lifetime, using trusts that remove assets from the estate, charitable bequests (often exempt), purchasing life insurance (proceeds pass outside the estate), and timing of distributions. Consult an estate attorney for state-specific strategies.