Verified against Maryland Register of Wills · Updated August 27, 2026
Maryland (MD) Inheritance Tax in 2026: Rates, Exemptions & Calculator
Maryland exempts a wide circle of family — spouses, domestic partners, parents, grandparents, children and their descendants, a child's spouse, and siblings — entirely. Anyone outside that list pays a flat 10%, with an unusual twist: the $1,000 exemption is a cliff, not a deduction.
Maryland inheritance tax rates and exemptions by relationship (2026)
Maryland sorts beneficiaries into classes based on their relationship to the person who died. Each class has its own exemption amount (if any) and tax rate — here's the full breakdown:
| Relationship to the deceased | Exemption | Rate |
|---|---|---|
| Spouse/domestic partner, parents/grandparents, children/descendants, their spouses, siblings (fully exempt) | — | Exempt |
| Nieces, nephews, aunts, uncles, cousins, and other non-exempt beneficiaries | $1,000 (cliff) | Flat 10.0% |
| Charities and exempt organizations (fully exempt) | — | Exempt |
Maryland also levies a separate estate tax on the estate itself — see the Maryland estate tax calculator for that exemption and rate schedule. A large estate left to a non-exempt heir can owe both.
The Maryland inheritance tax calculator asks for the heir's relationship, the amount inherited, and the date of death, and applies the single flat rate and exemption list shown in the table below. It models the $1,000 rule as the cliff it actually is: at or under the threshold the tax is $0, one dollar over and the whole amount is taxed — the detail most generic calculators get wrong.
Calculate Maryland inheritance tax for your situationWorked example
A niece isn't on Maryland's exempt list, so the flat 10% rate applies. Because the $1,000 exemption is a cliff rather than a deduction — the statute exempts transfers only when the total value is $1,000 or less — a $50,000 inheritance is fully taxed at 10% on the entire amount, not just the amount above $1,000, producing $5,000 in tax.
Rules worth knowing
- The $1,000 exemption only applies if the ENTIRE inheritance is $1,000 or less. Inherit $1,001 and the full $1,001 is taxed at 10% — not just the $1 over the line. This trips people up because it doesn't work like a standard deduction.
- Maryland separately levies its own estate tax (up to 16%, with roughly a $5 million exemption) on large estates — a completely different tax from the inheritance tax on this page. A single estate can owe both.
Filing deadline
This calculator doesn't independently track Maryland's specific filing-deadline text — confirm the exact due date with the Register of Wills in the county administering the estate.
How Maryland compares to the other states with an inheritance tax
Only five states still levy an inheritance tax, and each draws the line between "close family" and everyone else differently — here's how Maryland stacks up.
| State | Closest relatives exempt? | Highest taxed rate | Notable quirk |
|---|---|---|---|
| Maryland (this page) | Spouse, parents/grandparents, children+descendants, siblings | 10.0% | $1,000 exemption is a cliff, not a deduction |
| Nebraska | Spouse only | 15.0% | Anyone under 22 owes $0, regardless of relationship |
| Pennsylvania | Spouse only | 15.0% | No exemption amounts — flat rates from the first dollar |
| Kentucky | Spouse, parent, child, stepchild, grandchild, sibling | 16.0% | Grandparents are NOT exempt — taxed as Class C |
| New Jersey | Spouse, parents, grandparents, children, stepchildren | 16.0% | Stepchildren fully exempt, same as biological children |
Frequently asked questions
Does Maryland have both an inheritance tax and an estate tax?
Yes — Maryland is the only state that levies both. The inheritance tax (this page) is a flat 10% on what a non-exempt beneficiary receives. The Maryland estate tax is a separate tax paid by the estate itself on estates above the $5,000,000 exclusion, with a top rate of 16%. A single large estate left to a non-exempt beneficiary can owe both.
Who is exempt from Maryland inheritance tax?
Spouses and domestic partners, parents, grandparents, children and their descendants, a child's spouse, and siblings are fully exempt, as are charities and other exempt organizations. Nieces, nephews, aunts, uncles, cousins, friends, and any other beneficiary pay the 10% rate.
How much is Maryland inheritance tax?
A flat 10% of the full amount a non-exempt beneficiary receives. The $1,000 exemption is a cliff, not a deduction: an inheritance of $1,000 or less is exempt entirely, but inherit $1,001 and the whole $1,001 is taxed at 10%.
More on inheritance tax
For how the calculation works across all five states that still charge inheritance tax, how Maryland's rules fit into the bigger picture, and strategies to reduce what's owed, see the full inheritance tax guide.
How Maryland compares: on the same $500,000 inheritance for a 2026 death, an adult child owes $0 here, a niece or nephew $50,000, and an unrelated heir $50,000 — against a range of $50,000 to $75,000 for a niece across all five inheritance-tax states. The full side-by-side table, with a downloadable CSV, is in Inheritance and estate tax by state, 2026.