An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.
In the state of Georgia, there is no inheritance tax. This means that individuals who inherit property or money from a deceased person are not required to pay a state tax on their inheritance. It's important to note that while there is no federal inheritance tax, there is a federal estate tax, which is a tax on the transfer of the estate of a deceased person. However, the estate tax only applies to estates exceeding a certain threshold, which is adjusted annually for inflation. As of the knowledge cutoff in 2023, the federal estate tax exemption is quite high, meaning that most estates will not owe any federal estate tax. Beneficiaries should still be aware of other potential tax implications of an inheritance, such as capital gains tax, which may apply to profits from the sale of inherited assets.