Inheritance tax by state, 2026
Five states tax what heirs receive: Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland. Choose a state, a relationship and an amount, or read the tables below for every heir at once.
- States with the tax
- 5
- Spouse
- exempt everywhere
- Highest top rate
- 16 %
- Iowa
- repealed from January 1, 2025
Nebraska inheritance tax for this heir
$39,600
Class 2: uncles, aunts, nieces, nephews, their descendants and spouses. 9.9 % of what is received.
| Received | $400,000 |
| Tax | $39,600 |
| Kept by the heir | $360,400 |
Tax on the share received from a resident. A spouse pays none in any of the five states.
| State | Class | Tax |
|---|---|---|
| Kentucky | Class A | $0 |
| Maryland | Taxed at 10 % | $40,000 |
| Nebraska | Class 2 | $39,600 |
| New Jersey | Class D | $60,000 |
| Pennsylvania | Everyone else | $60,000 |
Compiled by Radif Partners · How we calculate · figures read on the state revenue department, the statute and irs.gov · not legal or tax advice
For deaths in 2026 an inheritance tax applies in five states: Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland. Iowa repealed its tax for deaths on or after January 1, 2025. The tax depends on the state where the deceased lived, or where the real estate lies, never on where the heir lives, and the rate depends on the heir's relationship to the deceased. A surviving spouse pays nothing in all five. Children pay nothing in New Jersey, Kentucky and Maryland, 4.5 % in Pennsylvania and 1 % above $100,000 in Nebraska. Brothers and sisters are exempt in Kentucky and Maryland, but pay 12 % in Pennsylvania. Nieces and nephews, exempt in Kentucky since January 1, 2026, pay 10 % in Maryland, 11 % above $40,000 in Nebraska and 15 % or more in New Jersey and Pennsylvania. On $100,000, a nephew pays $0 in Kentucky, $10,000 in Maryland, $6,600 in Nebraska, $15,000 in New Jersey, $15,000 in Pennsylvania.
Every heir, every state, on $100,000
The table gives the tax one person pays on a share of $100,000 received from a resident of each state, for a death in 2026, before any early payment discount. The heir is assumed to be 22 or older, which matters only in Nebraska.
| Heir | Kentucky | Maryland | Nebraska | New Jersey | Pennsylvania |
|---|---|---|---|---|---|
| Spouse | $0 | $0 | $0 | $0 | $0 |
| Adult child | $0 | $0 | $0 | $0 | $4,500 |
| Grandchild | $0 | $0 | $0 | $0 | $4,500 |
| Son- or daughter-in-law | $8,880 | $0 | $0 | $8,250 | $4,500 |
| Brother or sister | $0 | $0 | $0 | $8,250 | $12,000 |
| Niece or nephew | $0 | $10,000 | $6,600 | $15,000 | $15,000 |
| Aunt or uncle | $8,880 | $10,000 | $6,600 | $15,000 | $15,000 |
| Cousin | $12,620 | $10,000 | $11,250 | $15,000 | $15,000 |
| Friend or partner | $12,620 | $10,000 | $11,250 | $15,000 | $15,000 |
Two patterns stand out. Close family is almost always exempt, Pennsylvania and Nebraska being the exceptions for children. And the gap between states is widest for the middle of the family tree: a nephew who pays nothing in Kentucky pays $15,000 in New Jersey and Pennsylvania on the same share.
The same table on $1,000,000
On a large share the exempt amounts matter less and the top rates more. New Jersey and Kentucky both reach 16 % at the top of their brackets, Pennsylvania stays flat, Nebraska taxes the excess over its class exemption at a single rate, and Maryland keeps its single 10 %.
| Heir | Kentucky | Maryland | Nebraska | New Jersey | Pennsylvania |
|---|---|---|---|---|---|
| Spouse | $0 | $0 | $0 | $0 | $0 |
| Adult child | $0 | $0 | $9,000 | $0 | $45,000 |
| Grandchild | $0 | $0 | $9,000 | $0 | $45,000 |
| Son- or daughter-in-law | $150,840 | $0 | $9,000 | $107,250 | $45,000 |
| Brother or sister | $0 | $0 | $9,000 | $107,250 | $120,000 |
| Niece or nephew | $0 | $100,000 | $105,600 | $153,000 | $150,000 |
| Aunt or uncle | $150,840 | $100,000 | $105,600 | $153,000 | $150,000 |
| Cousin | $156,620 | $100,000 | $146,250 | $153,000 | $150,000 |
| Friend or partner | $156,620 | $100,000 | $146,250 | $153,000 | $150,000 |
One heir, one state
Nebraska inheritance tax for this heir
$50,600
| Received | $500,000 |
| Tax | $50,600 |
| Kept by the heir | $449,400 |
How each state is built
Pennsylvania taxes every share from the first dollar, at 4.5 % for lineal heirs, 12 % for siblings and 15 % for everyone else, with 0 for a spouse and for a child aged 21 or younger inheriting from a parent. Life insurance is exempt, and payment within 3 months earns a discount (Pennsylvania).
New Jersey sorts heirs into classes. Class A, close family and registered partners, is exempt. Class C, siblings and children's spouses, pays nothing on the first $25,000 and then 11 % to 16 %. Class D, everyone else, pays 15 % up to $700,000 and 16 % above (New Jersey).
Kentucky exempts Class A, which for deaths from January 1, 2026 includes nephews and nieces. Class B, in-laws, aunts, uncles and great-grandchildren, has a $1,000 exemption and brackets from 4 % to 16 %; Class C has a $500 exemption and brackets from 6 % to 16 % (Kentucky).
Nebraska has three classes, each with an exempt amount and one rate on the excess: 1 % above $100,000 for close family, 11 % above $40,000 for aunts, uncles, nieces and nephews, 15 % above $25,000 for everyone else. Summaries that reduce Nebraska to two rates drop Class 2, the one that applies to nieces and nephews. Heirs under 22 and the spouse pay nothing (Nebraska).
Maryland lists exempt relatives, from grandparents to siblings and the spouses of descendants, and taxes everyone else at 10 %; it is also the only state with an estate tax, which is reduced by the inheritance tax paid (Maryland inheritance tax).
Which state's tax applies
The state is set by the deceased, not by the heir. New Jersey's Division of Taxation says it directly: where the beneficiaries lived is not a factor, and filing depends on where the deceased legally lived (New Jersey Division of Taxation). A daughter in California who inherits from a mother in Philadelphia pays Pennsylvania tax; a nephew in Philadelphia who inherits from an aunt in Florida pays none. A resident's estate is taxed on everything except real estate located in another state. A nonresident's estate is taxed by each of these states on the real estate, and generally the tangible property, located there: a Florida retiree's house at the Jersey Shore or farmland in Nebraska can carry an inheritance tax even though Florida has none. The methods differ, from New Jersey's ratio computation to Kentucky's prorated exemption, and are compared on property in another state.
Iowa, the sixth state until 2024
Iowa reduced its inheritance tax rates for 2024 deaths and then ended the tax: for deaths on or after January 1, 2025 it no longer applies at all (Iowa Department of Revenue). Tables that still list six states, or Iowa rates, are out of date for a death in 2026. Returns for earlier deaths are still processed under the old law, as the Iowa page explains.
Deadlines and who pays
The tax falls on the heir's share, but the executor or personal representative files the return and usually pays it out of the estate before distributing the share. The calendars differ: Pennsylvania's tax becomes delinquent after 9 months, New Jersey's return and payment are due within 8 months, Kentucky allows 18 months for deaths before July 1, 2026 and 24 months after, Nebraska sets the tax in a county court proceeding, and Maryland's Register of Wills collects it when the property is distributed. All five inheritance taxes are deductible from the federal taxable estate under section 2058, which matters only above $15,000,000. The full calendar is on estate tax return deadlines, and the difference between the two kinds of death tax on estate tax vs inheritance tax.