Estimate state inheritance tax for Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
Verified against state Department of Revenue guidance and signed legislative text for each state shown. Full methodology.
The calculator determines which relationship class your relationship falls into for the selected state, subtracts that class's exemption from the amount you're receiving (or, for a cliff exemption like Maryland's, taxes the full amount once you're even $1 over the threshold), and applies that class's tax rate — a flat percentage or progressive brackets — to what's left.
Worked example: a niece inheriting $50,000 from an aunt in Kentucky falls into Class B. The first $1,000 is exempt. The remaining $49,000 is taxed progressively across Kentucky's Class B brackets (4% up to $10,000, 5% on the next $10,000, and so on), producing a total tax bill in the low thousands of dollars — a different outcome than if that same $50,000 had gone to a daughter instead, who as a Class A beneficiary would owe nothing at all.
Assumptions and edge cases: life insurance paid to a named beneficiary is treated as exempt in every state modeled here. Answering “I'm not sure” to a question that materially changes the outcome (such as a beneficiary's exact age) produces a range estimate instead of a single number, rather than silently guessing. See the full methodology page for source-confidence levels by state.
Verified against state Department of Revenue guidance and signed legislative text for each state shown.
See the full methodology page for how every calculator on this site is sourced and how confidence levels are assigned.
Limitations and disclaimer
DueMATH provides estimates for educational purposes only and is not tax, legal, or financial advice. Tax laws change frequently and every situation is different — confirm any number here with a licensed CPA, tax attorney, or your state's Department of Revenue before making a financial decision.
No. Estate tax is paid by the estate itself, before assets are distributed, based on the total value of everything the deceased owned. Inheritance tax is paid by the person receiving the money or property, and the rate usually depends on how closely related they were to the deceased. A state can have one, both, or neither — Maryland is unusual in having both.
Generally, inheritance tax is based on where the deceased lived (or where their real estate was located), not where the beneficiary lives. If your relative lived in Pennsylvania and you live in California, you may still owe Pennsylvania inheritance tax on what you receive.
In all five states that currently levy an inheritance tax, life insurance proceeds paid to a named beneficiary are exempt, regardless of the relationship to the deceased.
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