Does Virginia Collect Estate or Inheritance Tax?
Virginia residents do not need to worry about a state estate or inheritance tax. Virginia does not have these kinds of taxes, which some states levy on people who either owned property in the state where they lived (estate tax) or who inherit property from someone who lived there (inheritance tax).
Even though Virginia does not collect an inheritance tax, however, you could end up paying an inheritance tax to another state. If you inherit from someone who lived in one of the few states that have an inheritance tax--Iowa, Kentucky, Nebraska, New Jersey, Pennsylvania, and Maryland --you may get a tax bill from that state. It will be based on the value of what you inherited and how closely related you were to the deceased person. Surviving spouses don't have to pay inheritance tax, and some states exempt small inheritances. But it's still a tax bill that you probably weren't expecting.
There could also be a federal estate tax bill, but only if the deceased person left more than $12,920,000 in assets. more...