Do You Have to Pay Taxes on an Inheritance in the U.S.?
Do You Have to Pay Taxes on an Inheritance in the U.S.? Inheriting money or property from a loved one can be both emotional and confusing — especially when it comes to taxes. Many Americans wonder: Do I have to pay taxes on what I inherit? Here’s a clear and simple breakdown of how inheritance taxes work in the U.S., and what you need to know to stay compliant and avoid unexpected bills. ✅ Is Inheritance Taxed in the U.S.? It depends. At the federal level, there is no inheritance tax . However, that doesn’t mean you’re off the hook entirely. Some states do impose inheritance taxes, and large estates may still trigger estate taxes . 🏛 Federal Taxes vs. State Taxes Tax Type Applies to Who Pays? Estate Tax Estates over $13.61 million (as of 2024) The estate (not the heir) Inheritance Tax Only in 6 states The heir (you) States with inheritance tax: Iowa (phasing out by 2025) Kentucky Maryland (only for non-lineal heirs) Nebraska New Jersey...