Category
Estate + inheritance
2026Rank #51Maryland Estate and Inheritance Tax
Estate + inheritance · exempt ~$5M · top 16%. See federal interaction, planning checklist, and heir estimates for Maryland.
By Sammy S. · Founder · AuthorUpdated for 2026
Maryland estate and inheritance tax snapshot
Maryland levies both a state estate tax (exemption about $5M, top rate 16%) and an inheritance tax on certain heirs. Rank #51 on this site's death-tax friendliness score (#1 is most favorable).
Estate exemption
$5M
Top estate rate
16%
Inheritance tax
Yes
Friendliness rank
#51
vs federal exemption
State lower
Who should care about Maryland death taxes
Residents & domicile planners
People domiciled in Maryland (estate + inheritance) should model state rules alongside federal estate tax.
Nonresident property owners
Owning a home, land, or condo in Maryland can create situs-based filing even if you live elsewhere.
Executors & heirs
Beneficiaries in Maryland need relationship class and amount inputs—use the Maryland inheritance tax calculator for a first pass.
Compare Maryland with another state
Compare any two states
Estate tax, inheritance tax, exemptions, and federal interaction.
Maryland estate and inheritance tax examples
Estate rows use an illustrative top-rate sketch on amounts above the modeled exemption (actual brackets are progressive). Heir rows use the same inheritance tax calculator engine as the live tool.
| Scenario | Detail | Amount | Result |
|---|---|---|---|
| $2M estate | Excess above $5M × top 16% (illustrative) | $2M | $0 illustrative |
| $5M estate | Excess above $5M × top 16% (illustrative) | $5M | $0 illustrative |
| $10M estate | Excess above $5M × top 16% (illustrative) | $10M | ~$800,000 illustrative |
| Child · $250k | Exempt class | $250,000 | $0 |
| Sibling · $125k | Exempt class | $125,000 | $0 |
| Other heir · $100k | Collateral / other (10%) | $100,000 | $10,000 |
$2M estate
Excess above $5M × top 16% (illustrative)
- Amount
- $2M
- Result
- $0 illustrative
$5M estate
Excess above $5M × top 16% (illustrative)
- Amount
- $5M
- Result
- $0 illustrative
$10M estate
Excess above $5M × top 16% (illustrative)
- Amount
- $10M
- Result
- ~$800,000 illustrative
Child · $250k
Exempt class
- Amount
- $250,000
- Result
- $0
Sibling · $125k
Exempt class
- Amount
- $125,000
- Result
- $0
Other heir · $100k
Collateral / other (10%)
- Amount
- $100,000
- Result
- $10,000
Estate tax in Maryland
Yes — exemption about $5M, top rate near 16%
- Approx. exemption
- $5M
- Top estate rate
- 16%
Maryland is the only state with both estate and inheritance taxes—plan for both layers. Most states do not offer federal-style portability of unused estate exemption to a surviving spouse. Inheritance tax is paid by the heir; use the inheritance tax calculator for relationship-based estimates.
Inheritance tax in Maryland
Yes — paid by certain beneficiaries
Spouses and many close relatives exempt; non-exempt heirs pay a flat 10%. Maryland also has a separate estate tax.
Estimate heir tax in MarylandFederal estate tax and Maryland
There is no federal inheritance tax. Federal estate tax may still apply above about $15M per person in 2026 (top rate 40%), regardless of Maryland rules. Maryland's state exemption ($5M) is lower than the federal figure, so state tax can apply when federal does not.
Federal estate tax
About $15M exclusion · 40% top rate
Maryland estate tax
Exempt ~$5M · top 16%
Maryland inheritance tax
Yes — relationship-based
Maryland estate and inheritance tax checklist
Practical steps before you relocate, update beneficiary forms, or estimate what heirs might owe in Maryland.
Confirm domicile and situs
Your Maryland exposure depends on domicile for most intangibles and situs for real estate. Document where you live and where titled property sits.
Stack federal and state
Maryland's ~$5M exemption can bind before the ~$15M federal exclusion—model both layers.
Classify each beneficiary
Spouses and many close relatives exempt; non-exempt heirs pay a flat 10%. Maryland also has a separate estate tax. Small class mistakes can change the rate from 0% to double digits.
Review beneficiary designations
Retirement accounts and life insurance often bypass probate but can still matter for Maryland inheritance tax (where applicable) and federal estate inclusion.
Compare neighboring states
Open related Maryland comparisons below—small exemption gaps compound for mid-size estates and multi-home families.
Estimate Maryland inheritance tax
Open the free Maryland Inheritance Tax Calculator for relationship-based estimates using the same engine as the examples above.
Open Maryland inheritance tax calculatorRelated states by death-tax friendliness
OregonRank #50 · Estate tax only · exempt ~$1M
Compare Maryland vs Oregon →
Rhode IslandRank #49 · Estate tax only · exempt ~$1.838M
Compare Maryland vs Rhode Island →
MassachusettsRank #48 · Estate tax only · exempt ~$2M
Compare Maryland vs Massachusetts →
MinnesotaRank #47 · Estate tax only · exempt ~$3M
Compare Maryland vs Minnesota →Maryland estate and inheritance tax FAQs
Yes. Maryland’s modeled estate exemption is about $5M with a top rate near 16%.
Yes. Spouses and many close relatives exempt; non-exempt heirs pay a flat 10%. Maryland also has a separate estate tax.
Federal estate tax uses an exemption of about $15M and a top rate of 40%. Maryland’s state exemption ($5M) is lower, so state tax can apply when federal does not.
At about $5M, the estate would still sit under Maryland’s modeled exemption of $5M—so this illustrative top-rate sketch shows $0 state estate tax on that amount (actual schedules are progressive; confirm with counsel).
This site’s inheritance tax calculator estimates about $0 (0% effective) for a child receiving $250,000 in Maryland. Open the Maryland calculator to try other relationships and amounts.
Maryland ranks #51 (lower score is more heir/estate-friendly). Category: Estate + inheritance.
Real property is generally taxed where it sits (situs). A home located in Maryland can create Maryland estate or inheritance tax exposure even if the decedent was domiciled in another state. Intangibles usually follow domicile.
Domicile in Maryland can subject the taxable estate or heirs to Maryland rules (estate + inheritance). Confirm domicile change timing and any look-back or situs rules with counsel.
Surviving spouses are generally exempt from Maryland inheritance tax. Estate tax (if any) is paid by the estate before distribution—see the estate section above for exemptions.
Most estate-tax states, including Maryland in this model’s planning notes, do not mirror federal DSUE portability. Couples should not assume unused Maryland exemption automatically transfers to a surviving spouse.
Heirs receiving Maryland property, executors filing in Maryland, and residents with non-exempt beneficiaries (siblings, nieces/nephews, unrelated heirs).
Open the Maryland Inheritance Tax Calculator and select your relationship and amount for an engine-backed estimate.
Confirm current Maryland revenue department figures and situs rules. Rankings are educational planning aids.