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

2026 New

Work out state inheritance tax for deaths in 2026 in the five states that still charge it: your beneficiary class, the rates and exemptions, the Pennsylvania and Kentucky early-payment discounts.

By Konstantin Iakovlev · Updated September 2026 · Source: PA 72 P.S. §9116; N.J.S.A. 54:34-2 and IT-R instructions; KRS 140.070; Neb. Rev. Stat. 77-2004 to 77-2006; Md. Tax-Gen. §7-204

$

New Jersey inheritance tax

$24,750

Effective rate

9.90%

You keep

$225,250

How it is figured

Beneficiary classClass C: brothers and sisters, sons- and daughters-in-law
Share$250,000.00
First $25,000 exempt$0.00
11% on $25,000 to $1,100,000$24,750.00
Inheritance tax$24,750.00

Due 8 months after death; interest at 10% a year after that.

Life insurance paid to a named beneficiary is not taxed. IRAs and 401(k)s left to Class C or D beneficiaries are taxed.

N.J.S.A. 54:34-2

New Jersey: who pays what

  • Class A: spouse, domestic or civil union partner, children, stepchildren, grandchildren, parents, grandparents
  • Class C: brothers and sisters, sons- and daughters-in-law
  • Class D: everyone else
  • Class E: charities and government

Only five states tax heirs in 2026. Iowa repealed its inheritance tax for deaths from January 1, 2025. Inheritance tax is separate from the federal estate tax, which applies only above $15 million in 2026, and from the estate taxes some states charge on the whole estate.

Use the Inheritance Tax Calculator 2026 — PA, NJ, KY, NE, MD above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

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 In 2026 only five states levy one: Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland; Iowa repealed its tax for deaths from January 1, 2025.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.

Example: A Sister Inherits $250,000

  1. 1 Input: a sister inherits a $250,000 share from her brother, who lived in New Jersey.
  2. 2 Class: in New Jersey a sibling is Class C, where the first $25,000 is exempt and the amount from $25,000 to $1,100,000 is taxed at 11%.
  3. 3 Tax: 11% × ($250,000 − $25,000) = $24,750, the figure in the state's own instructions.
  4. 4 Other states: the same share would owe $30,000 in Pennsylvania (12%, or $28,500 with the early-payment discount), $1,500 in Nebraska, and nothing in Kentucky or Maryland, where siblings are exempt.

Frequently Asked Questions

Which states have an inheritance tax in 2026?
Pennsylvania, New Jersey, Kentucky, Nebraska and Maryland. Iowa repealed its inheritance tax for deaths on or after January 1, 2025.
Do children pay inheritance tax?
Not in New Jersey, Kentucky or Maryland. Pennsylvania taxes children at 4.5% (0% if the child is 21 or younger), and Nebraska taxes them at 1% of the amount above $100,000.
How much inheritance tax do siblings pay?
Pennsylvania charges 12% of the whole share, New Jersey 11% to 16% after the first $25,000, and Nebraska 1% above $100,000. Siblings are exempt in Kentucky and Maryland.
Is life insurance subject to inheritance tax?
Generally not when it is paid to a named beneficiary: Pennsylvania exempts it in all cases, and New Jersey, Kentucky and Maryland exempt it unless it is paid to the estate.