MD Executor Guide
Maryland Estate Tax: the $5 Million Exclusion
Maryland is one of the only states with both death taxes. Most estates owe neither — but the estate tax line sits far below the federal one.
Maryland death tax checker
Checks an estate against the $5.0 million Maryland exclusion and the $15,000,000 federal exclusion, and applies the 10% inheritance rate to a collateral heir’s share. It does not compute estate tax: the MET-1 does that. Property administered as a small estate is exempt from inheritance tax. See the Maryland inheritance tax calculator; the Register of Wills, the Comptroller or a CPA can confirm.
How does the Maryland estate tax work?
| Maryland estate tax | |
|---|---|
| Exclusion | $5.0 million for deaths on or after January 1, 2019 (fixed, not indexed) |
| Return | Form MET-1 to the Comptroller; the federal return is completed even if it is not filed with the IRS |
| Deadline | 9 months after death, or an approved extension — extension to file is not extension to pay; interest accrues |
| Who files | The personal representative (jointly if several); if none is appointed, anyone in possession of the decedent’s property |
| Portability | A surviving spouse may elect the unused Maryland exclusion on a timely MET-1 (with a 2-year grace for portability-only filings) |
How is the Maryland inheritance tax different?
The inheritance tax is 10% on what collateral heirs receive — nieces, nephews, aunts, uncles, cousins, friends. Exempt: a spouse, children and lineal descendants, a child’s spouse, parents, grandparents, stepchildren, stepparents and siblings (deaths on or after July 1, 2000), registered domestic partners (deaths on or after October 1, 2023), §501(c)(3) organizations, and property administered as a small estate. On probate assets it is due when the personal representative submits an Administration Account; on non-probate assets, when the Register of Wills sends an invoice, with a 10% penalty plus interest if unpaid after 30 days.
The two taxes are coordinated: inheritance tax paid by the MET-1 due date offsets the estate tax liability, and a shortfall accrues interest and penalty.
Stay on every step (and every dollar)
The MD Executor Compliance Kit maps the whole Maryland process — both clocks, the three tracks, the creditor window and the record the Register expects.
See the Compliance Kit → Free MD deadline calculatorSee real pages from inside the kit → · Every kit carries a 30-day money-back guarantee — if it isn't the help you needed, email and I'll refund you in full. No forms, no questions.
Free: the Executor's First 30 Days checklist
Get the printable checklist right away, plus a short series of Maryland emails from a real executor. No spam; unsubscribe anytime.
We never sell your info. ExecutorPilot is an educational resource, not a law firm.
Frequently asked questions
Does Maryland have an estate tax?
Yes. Maryland is one of the few states with both an estate tax and an inheritance tax. The estate tax applies above a $5.0 million exclusion for deaths on or after January 1, 2019.
What is the Maryland estate tax exemption for 2026?
The exclusion is $5.0 million. It has been fixed since January 1, 2019 and is not indexed for inflation.
When is the Maryland estate tax return due?
Form MET-1 is filed with the Comptroller within 9 months after death, or by an approved extension. An extension to file is not an extension to pay, and interest accrues.
How is the Maryland inheritance tax different?
The inheritance tax is 10% on what collateral heirs receive — nieces, nephews, aunts, uncles, cousins and friends. A spouse, children and other lineal descendants, a child’s spouse, parents, grandparents, stepchildren, stepparents and siblings are exempt, as are registered domestic partners for deaths on or after October 1, 2023.
Can an estate owe both Maryland taxes?
Yes. Inheritance tax paid by the MET-1 due date offsets the estate tax liability, so the two are coordinated rather than simply added together.
What is the federal estate tax exemption for 2026?
The IRS gives the 2026 basic exclusion amount as $15,000,000 — three times Maryland’s exclusion, so a Maryland estate can owe state estate tax and no federal estate tax.