Maryland · Estate planning

Maryland Estate Tax and Inheritance Tax Rules

Maryland imposes a state estate tax. For decedents dying in 2019 and after, a Maryland estate tax return is generally required when the federal gross estate plus adjusted taxable gifts plus prior Maryland QTIP property equals or exceeds $5,000,000. Maryland estate tax is capped by the state death-tax credit computation and can be offset by Maryland inheritance tax paid.

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Answer first, sources attached

The two state transfer-tax questions to check first

State estate and inheritance taxes are separate from the federal estate tax and from income-tax consequences. Start with the current state treatment and source.

Tax on the estate

State estate tax

Maryland imposes a state estate tax. For decedents dying in 2019 and after, a Maryland estate tax return is generally required when the federal gross estate plus adjusted taxable gifts plus prior Maryland QTIP property equals or exceeds $5,000,000. Maryland estate tax is capped by the state death-tax credit computation and can be offset by Maryland inheritance tax paid.

Comptroller of Maryland, Estate-Inheritance-Fiduciary Tax FAQs; Comptroller Tax Guidance, Filing the Estate Tax Return.

Verified Jul 3, 2026 · Next review by Jul 3, 2027

Tax on beneficiaries

State inheritance tax

Maryland imposes an inheritance tax on non-exempt beneficiaries. Direct or lineal heirs, spouses, siblings, and several other classes are exempt under current law; collateral heirs and unrelated beneficiaries are generally subject to a 10% inheritance tax.

Maryland Register of Wills, Inheritance Tax; Md. Code, Tax-General Sec. 7-203.

Verified Jul 3, 2026 · Next review by Jul 3, 2027

What changes the answer

The statewide rule is the starting point

  • Date of deathThresholds, rates, and repeal or phase-in rules are date-sensitive.
  • Domicile and property locationA state may treat residents and in-state property differently.
  • Beneficiary relationshipInheritance-tax treatment can depend on the recipient’s relationship to the decedent.
  • Federal and income-tax rulesFederal estate tax, basis, retirement accounts, and trust income remain separate analyses.

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