MD estate risk
Tax exposure in Maryland
State estate or inheritance tax rules and how they interact with federal thresholds.
Maryland imposes both an estate tax and an inheritance tax, with a $5 million estate tax exclusion.
At a glance
Key takeaways
- The Maryland estate tax exclusion amount remains $5,000,000 per person.
- Inheritance tax is 10% for collateral heirs; siblings are exempt, and close family (spouse, parent, child) are exempt.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
- Inheritance tax rates depend on beneficiary class, and close relatives are often exempt or taxed at lower rates.
Questions to consider
Questions to consider in Maryland
- Does the state impose an estate or inheritance tax?
- Who is exempt or receives preferential treatment?
- How does federal tax interact with state rules?
State overview
Maryland imposes both an estate tax and an inheritance tax, with a $5 million estate tax exclusion.
- The Maryland estate tax exclusion amount remains $5,000,000 per person.
- Inheritance tax is 10% for collateral heirs; siblings are exempt, and close family (spouse, parent, child) are exempt.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
- Inheritance tax rates depend on beneficiary class, and close relatives are often exempt or taxed at lower rates.
Sources
- https://mdbre.gov/BRE_reports/federalimpact/60-day-report-obbb.pdf
- https://registers.maryland.gov/main/taxes.html
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
Background sources
- IRS inflation adjustments for tax year 2026
Use for the current federal estate tax basic exclusion amount.
- IRS Instructions for Form 706 (United States Estate Tax Return)
Defines filing requirements and federal estate tax framework.
- Tax Foundation - State estate and inheritance taxes
Current list of states with estate or inheritance taxes.
National sources provide baseline context; state statutes and court rules control in Maryland.
Optional next steps
Continue with related estate-risk context
Educational resources only. No forms and no legal advice.
Understand death-risk context for Maryland
LifeRiskIQ gives broader mortality context that can help frame when estate planning becomes more urgent.
Understand retirement-risk context for Maryland
RetirementRiskIQ explains how asset growth and longevity can increase estate complexity over time.
Review federal estate tax basics
IRS guidance on federal estate tax thresholds, filings, and definitions.