Inheritance Tax Calculator 2026 — PA, NJ, KY, NE, MD

Inheritance tax is charged on what each heir receives, unlike an estate tax, which is charged on the whole estate. In 2026 only five states levy one: Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland; Iowa repealed its tax for deaths from January 1, 2025. The tax follows the state where the person who died lived, and real estate is also taxed by the state where it sits.

Every state sorts heirs into classes by relationship. Spouses are exempt everywhere, and children are exempt everywhere except Pennsylvania (4.5%) and Nebraska (1% above $100,000). Pennsylvania taxes brothers and sisters at 12% and everyone else at 15% of the whole share; New Jersey taxes siblings at 11% to 16% after a $25,000 exemption and more distant heirs at 15% to 16%; Kentucky charges 4% to 16% with small exemptions and, from 2026, exempts nieces and nephews; Nebraska taxes remote relatives at 11% above $40,000 and others at 15% above $25,000; Maryland charges a flat 10% to anyone outside the close family.

Timing matters. Pennsylvania takes 5% off the tax if it is paid within 3 months of death, and Kentucky gives 5% off if paid within 9 months (14 months for deaths from July 1, 2026). Life insurance paid to a named beneficiary is generally not taxed, and Nebraska does not tax anything left to a beneficiary under 22. Retirement accounts are taxed in most of these states when they pass to non-exempt heirs.