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 Maryland, there is an inheritance tax that applies to the value of property inherited from a deceased person. The tax rate is 10% of the value of the property inherited by certain individuals. However, immediate family members, such as spouses, children, siblings, and parents, are exempt from this tax. The inheritance tax is imposed on more distant relatives and non-relatives. It's important to note that the inheritance tax is different from the estate tax, which Maryland also imposes on the overall value of the deceased's estate if it exceeds a certain threshold. Maryland is one of the few states that has both an estate tax and an inheritance tax. To understand the specific implications of these taxes on an inheritance, consulting with an attorney who specializes in estate planning or tax law in Maryland would be advisable.