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Estate and Inheritance Tax in Maryland

Maryland has both taxes: an estate tax with a $5,000,000 exclusion and a top rate of 16%, and an inheritance tax of 10% on the clear value of property passing to taxable beneficiaries.

Last checked . General information, not legal advice.

Maryland at a glance

State estate tax
Yes
Estate tax exemption
$5,000,000
Applies to deaths on or after January 1, 2019, plus any deceased spousal unused exclusion amount (portability).
Top estate tax rate
16%
Inheritance tax
Yes
10% of the clear value of property passing to taxable beneficiaries. Spouses, parents, grandparents, children and their descendants, and siblings are exempt.

Sources

Last checked

The rules in Maryland

Does Maryland have a state estate tax?

Yes. State estate tax in Maryland: yes.

What is the estate tax exemption in Maryland?

Estate tax exemption in Maryland: $5,000,000. Applies to deaths on or after January 1, 2019, plus any deceased spousal unused exclusion amount (portability).

What is the top estate tax rate in Maryland?

Top estate tax rate in Maryland: 16%.

Does Maryland have an inheritance tax?

Yes. Inheritance tax in Maryland: yes. 10% of the clear value of property passing to taxable beneficiaries. Spouses, parents, grandparents, children and their descendants, and siblings are exempt.

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

The rules above come from Md. Code, Tax-Gen. 7-309, Md. Code, Tax-Gen. 7-204 and Md. Code, Tax-Gen. 7-203. Each source is linked on this page. We last checked them in October 2026.

Good to know

Qualified agricultural property passing to a qualified recipient can be excluded up to $5,000,000 for estate tax purposes.

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.