Exemption & rate verified against primary sources · Updated October 1, 2026
Maryland Estate Tax in 2026: Exemption, Rates & Calculator
Maryland is one of only two states that charge BOTH an estate tax and a separate inheritance tax — a single estate can owe both. The estate tax exemption is $5,000,000, above which Maryland applies a flat 16% rate that, thanks to how the statute is written, works out to the same result as the older federal-credit-table method for every realistic Maryland estate.
Calculate Maryland estate tax for your situationHow Maryland taxes an estate
Maryland law technically computes tax as the LESSER of a decades-old federal credit-table calculation or a flat 16% of the excess over $5,000,000 — but verified this round: for any single-jurisdiction Maryland estate at or above the exemption, the flat 16% side is always the smaller (and therefore controlling) number. In practice, that means the flat formula shown here is exact, not an approximation.
Applied to the amount above Maryland's $5,000,000 exclusion.
| Range | Rate |
|---|---|
| $0 – $5,000,000 (exclusion) | 0.0% |
| Over $5,000,000 | 16.0% |
Worked example
A $10,000,000 Maryland taxable estate has $5,000,000 above the exclusion. At the flat 16% rate, that's $800,000 in Maryland estate tax.
Rules worth knowing
- Maryland is one of only two states (with New Jersey) that levy both an estate tax and an inheritance tax — this page covers the estate tax only. See the inheritance tax calculator for Maryland's separate inheritance tax on transfers to non-exempt beneficiaries.
- The exemption has been $5,000,000 since 2019 and is not indexed for inflation.
Filing deadline
The federal Form 706 return, when required, is due 9 months after the date of death (IRC §6075(a)). Maryland's own Form MET-1 has its own deadline, typically tied to the same 9-month window — confirm the exact requirement with the Comptroller of Maryland rather than relying on the federal date alone.
How Maryland compares to the other states with an estate tax
13 states plus D.C. levy their own estate tax on top of the federal one, each with a different exemption, top rate, and calculation method — here's every one of them side by side.
| State | Exemption | Top rate | How it's calculated |
|---|---|---|---|
| Oregon | $1,000,000 | 16.0% | Graduated 10%–16% |
| Rhode Island | $1,838,056 | 16.0% | Federal credit table |
| Massachusetts | $2,000,000 | 16.0% | Federal credit table |
| Minnesota | $3,000,000 | 16.0% | Graduated 13%–16% |
| Washington | $3,000,000 | 20.0% | Flat 20% (date-sensitive) |
| Illinois | $4,000,000 | 16.0% | Lesser-of two formulas |
| the District of Columbia | $4,988,400 | 16.0% | Graduated 11.2%–16% |
| Maryland (this page) | $5,000,000 | 16.0% | Flat 16% (credit-table equiv.) |
| Vermont | $5,000,000 | 16.0% | Flat 16% |
| Hawaii | $5,490,000 | 20.0% | Graduated 10%–20% |
| Maine | $7,160,000 | 12.0% | Graduated 8%–12% |
| New York | $7,350,000 | 16.0% | Graduated + 105% cliff |
| Connecticut | $15,000,000 | 12.0% | Flat 12% |
Frequently asked questions
Does Maryland have an inheritance tax as well as an estate tax?
Yes — Maryland is the only state that levies both. The estate tax on this page is paid by the estate on the value above the $5,000,000 exclusion. The Maryland inheritance tax is a separate flat 10% owed by beneficiaries who are not close family (spouses, parents, grandparents, children and their descendants, a child's spouse, and siblings are exempt). A large estate left to a niece or a friend can owe both; see the Maryland inheritance tax calculator for the second tax.
What is the Maryland estate tax exemption in 2026?
$5,000,000 per person for deaths in 2026. Estates at or below that amount owe no Maryland estate tax. Maryland calls this the exclusion amount. The federal exemption is separate and much higher ($15,000,000 for 2026), so many estates owe Maryland estate tax and no federal estate tax.
What is the top Maryland estate tax rate?
16%. See "How Maryland taxes an estate" above for how the rate is actually applied, and use the calculator for the exact figure on a given estate.
More on estate tax
For how federal estate tax interacts with Maryland's own rules, the 2026 federal exemption, and spousal portability, see the full estate tax guide.
How Maryland compares: for a single decedent dying in 2026, a $5,000,000 estate owes $0 in state estate tax in Maryland — one of 6 of the 13 jurisdictions that collect nothing at that size, and a $10,000,000 estate owes $800,000. Federal estate tax is $0 in both cases. The full comparison across all 12 estate-tax states and DC, with a downloadable CSV, is in Inheritance and estate tax by state, 2026.