Maryland residents are potentially subject to both an inheritance tax and an estate tax. Maryland's estate tax is levied on estates of more than $5 million.  The estate tax falls on the estate of the person who died; the beneficiaries or heirs inherit what's left.

Estate Tax Exclusion limits in Maryland

Year of death Gross estate
2019 and after $5,000,000
2018 $4,000,000
2017 $3,000,000
2016 $2,000,000
2015 $1,500,000
2002-2014 $1,000,000
2000-2001 $675,000
1999 $650,000


Maryland Inheritance tax

Maryland also levies an inheritance tax (a tax on the privilege of inheriting) on people who inherit property in that state -- which is different than an estate tax based on the size of the overall estate.

 It is the only state to do both.

The Maryland Comptrollers Office has information on the Maryland Inheritance Tax.

Federal Estate Tax

These state-specific estate and inheritance taxes are in addition to the federal estate tax, and that tax also falls on the estate of the person who died, not on the people who inherit that property. There is an exemption of $13,610,000, and only people who die with an estate larger than that exemption will have to pay estate tax. It is estimated that only the richest .14% of Americans will be subject to the estate tax, or only two out of every 1,000 people who die.

Bottom Line

If someone dies in Maryland with less than the federal exemption amount (currently $13,610,000), their estate doesn't owe any federal estate tax, and if someone dies in Maryland with an estate worth less than the state exemption amount (currently $5 million) there is no Maryland estate tax, either, though there may be inheritance tax due.

The Maryland Comptroller provides state tax forms and instructions. The Maryland estate tax return is due nine months after the death unless the executor requests and receives an extension. If tax is due, it must be paid nine months after the death, whether or not an extension to file is granted, unless the state also authorizes an alternative payment schedule, where payments are temporarily deferred or paid in installments.


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