Inheritance taxes are rare and can surprise you after a loved one dies. Here's what to know about how they work, who pays them, and how to avoid them.

If you live in one of the few states that tax inheritance — Iowa (until 2025), Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania — visit the state's revenue department website for more ...

Inheritance tax is not a federal tax, so it only affects residents of certain states. Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania are the only states where inheritance tax may apply.

Inheriting money or assets? Learn some key tax tips and smart moves, as well as why patience can pay off before making any ...

Another key difference: While there is no federal inheritance tax, there is a federal estate tax. The federal estate tax ranges from 18% to 40% and generally only applies to assets over $13.99 ...

However, Iowa abolished its inheritance tax, starting in 2025; beneficiaries won’t pay inheritance taxes in Iowa beginning Jan. 1, 2025. Inheritance tax vs. estate tax ...

Most people probably won’t have to pay these taxes because thresholds are high. In 2019, for example, only 6,409 federal estate tax returns were filed. Of those, only about 40% were taxable but ...

The federal estate tax exemption is currently $13.61 million, with tax rates ranging from 18% to 40%. State estate tax exemptions and rates vary, with exemptions ranging from $1 million to $13.61 ...

Thus your inheritance tax would be 4% of $500,000, which is $20,000. Inheritance taxes are generally due within nine to 18 months after the death of the bequeather.

Independent analysis of the government’s inheritance tax reforms has found eight out of 10 farming estates will be able to ...

This means that of the $100,000 bequest, a $15,000 tax will be imposed ($100,000 * 15%). The net amount the nephew will receive is $85,000 ($100,000 minus the $15,000 inheritance tax).