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 Rhode Island, there is no state-level inheritance tax imposed on individuals who inherit property from someone who has passed away. While some states in the United States do levy an inheritance tax, Rhode Island is not one of them. However, it is important to note that this does not exempt the estate itself from taxes. Rhode Island, like the federal government, imposes an estate tax on the decedent's estate if its value exceeds a certain threshold. The estate tax is based on the total value of the deceased person's estate, not on who inherits the property. Beneficiaries should still be aware of potential federal estate taxes and any other tax implications that may arise from inheriting property.