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Estate Tax & Data · Maryland

Maryland Estate & Inheritance Tax

Does Maryland tax what you leave behind? In 2026 the state has a state estate tax and an inheritance tax. This page lays out the detail — thresholds, rates, and the probate basics — with every figure cited to Maryland’s own statute or department of revenue.

Written by TTA Editorial

Published July 20, 2026 · Last verified July 20, 2026 · Update policy: reviewed at least annually and on change in law; statutory tables re-verified each legislative session

At a glance

State estate taxYes — exemption $5,000,000Md. Code Tax-Gen. § 7-309 · 2026
Estate top rate16%Comptroller of Maryland — Estate Tax (TIP 42) · 2026
Inheritance taxYes — 10% on collateral heirsMd. Code Tax-Gen. § 7-204 · current
Small-estate ceiling$50,000Md. Code Est. & Trusts § 5-601 · current
TOD deed for real estateAvailable beginning Oct 1, 20262026 Md. Laws Ch. 750 (SB 651) — Real Property TOD Act · 2026-10-01
Community-property stateNo

Estate tax

The number that matters: Maryland’s 2026 estate-tax exemption is $5,000,000 Md. Code Tax-Gen. § 7-309 · 2026, with a top marginal rate of 16% Comptroller of Maryland — Estate Tax (TIP 42) · 2026.

Maryland imposes a state estate tax with a fixed exemption of $5,000,000 for deaths on or after January 1, 2019 (Md. Code Tax-Gen. § 7-309). The exemption is a flat statutory figure, not indexed, so it has stayed at $5,000,000 while the federal exemption climbed far higher. Maryland is unusual in allowing portability of the state exemption between spouses if a timely Maryland return makes the irrevocable election — letting a couple shield up to $10,000,000.

The tax is based on the old federal credit for state death taxes and cannot exceed 16% of the amount by which the estate exceeds the $5,000,000 exemption; rates are graduated with a 16% top.

Maryland is the only state that levies BOTH a state estate tax and a separate inheritance tax. The two are coordinated: any Maryland inheritance tax paid to the Register of Wills is credited against the estate tax, so the same dollars are not taxed twice at the state level. The estate-tax return (Form MET-1) is filed with the Comptroller within nine months of death.

Inheritance tax

Maryland's inheritance tax is 10% of the clear value of property passing to a non-exempt beneficiary (Md. Code Tax-Gen. § 7-204). Immediate family is exempt under § 7-203 — the surviving spouse, children and other lineal descendants (and their spouses), parents, grandparents, and siblings all pass free of the tax.

The 10% therefore falls on more distant and collateral heirs and unrelated beneficiaries — nieces, nephews, aunts, uncles, cousins, and friends. The inheritance tax is collected not by the Comptroller but by the Register of Wills in the county where the decedent lived or owned property.

Probate basics

Maryland allows a simplified small-estate administration when the property subject to administration is $50,000 or less (Md. Code Est. & Trusts § 5-601). That cap rises to $100,000 when the surviving spouse is the sole heir.

Maryland is a common-law (separate-property) state for ownership between spouses. A transfer-on-death deed for real estate is Available beginning Oct 1, 2026 2026 Md. Laws Ch. 750 (SB 651) — Real Property TOD Act · 2026-10-01. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.

State-specific quirks

The only state with both a state estate tax and an inheritance tax

Maryland is the sole state that imposes BOTH. A single estate can be reached by each, though inheritance tax actually paid is credited against the Maryland estate tax so the same dollars are not taxed twice at the state level.

10% inheritance tax on collateral heirs

Bequests to non-exempt beneficiaries — nieces, nephews, cousins, friends — trigger a flat 10% inheritance tax on the value received, collected by the Register of Wills. Immediate family (spouse, children, parents, grandparents, siblings) is fully exempt, so beneficiary relationship matters.

Fixed $5M exemption, but state portability is available

Maryland's $5,000,000 estate exemption is frozen and not indexed, pulling more estates over the line as values rise. Uniquely, Maryland lets a surviving spouse port a predeceased spouse's unused state exemption — but only if a timely Maryland return makes the irrevocable election, even when no federal return is otherwise required.

Sources & methodology

Methodology & sources

Every tax figure on this page links to the primary source it was verified against — a Maryland statute or department-of-revenue page — with that source’s own effective date. Aggregator round-ups are never used as a source. State death and probate law changes every legislative session; this page carries the date it was last re-verified, and any figure that could not be confirmed from a primary source is flagged for you to check with the state rather than guessed. See our editorial standards.

This page is educational and is not legal or tax advice. Whether a death tax applies turns on residency, where property sits, and how title is held — details a general page cannot resolve. Confirm your own situation with a professional licensed in Maryland.

Last verified July 20, 2026.