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Estate and Inheritance Tax in Kentucky

Kentucky has no state estate tax, but it does have an inheritance tax that depends on the beneficiary's relationship to the person who died.

Last checked . General information, not legal advice.

Kentucky at a glance

State estate tax
No
Estate tax exemption
No state estate tax
Top estate tax rate
No state estate tax
Inheritance tax
Yes
Class A relatives (such as a spouse, parent, child, grandchild or sibling) are exempt. Class B pays 4% to 16% and Class C pays 6% to 16%.

Sources

Last checked

The rules in Kentucky

Does Kentucky have a state estate tax?

No. State estate tax in Kentucky: no.

What is the estate tax exemption in Kentucky?

Estate tax exemption in Kentucky: No state estate tax.

What is the top estate tax rate in Kentucky?

Top estate tax rate in Kentucky: No state estate tax.

Does Kentucky have an inheritance tax?

Yes. Inheritance tax in Kentucky: yes. Class A relatives (such as a spouse, parent, child, grandchild or sibling) are exempt. Class B pays 4% to 16% and Class C pays 6% to 16%.

Where do the Kentucky estate and inheritance tax rules come from?

The rules above come from Ky. Rev. Stat. ch. 140. Each source is linked on this page. We last checked them in October 2026.

Good to know

Class B beneficiaries (such as nieces, nephews, aunts and uncles) receive a $1,000 exemption, and Class C beneficiaries receive a $500 exemption.

A 5% discount applies if the inheritance tax is paid within nine months of the date of death.

What this means in practice

State estate tax exemptions can be much lower than the federal exemption, so an estate that owes no federal tax may still owe state tax. Some states adjust their exemption each year for inflation, so check the amount for the year of death.

Real estate is generally taxed by the state where it is located. A person who lives in one state and owns land in another may need to consider the rules of both states, which is one reason some people hold out-of-state property in a living trust.

Estate and inheritance tax returns have filing deadlines and may require payment before the estate is closed. Executors often work with a tax professional to value assets, claim deductions such as the marital and charitable deductions, and file on time.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.