Maryland Executor Guide
Maryland Inheritance Tax, in Plain English
The flat 10%, the long list of relatives who owe nothing, and the separate estate tax nobody warns you about.
If you're settling a Maryland estate (Maryland calls the executor a personal representative), the tax picture looks scarier than it usually is. Maryland is famous as the only state with both an inheritance tax and an estate tax, but in practice most families pay neither: the inheritance tax exempts close relatives entirely, and the estate tax only touches estates over $5 million.
The rate: a flat 10%, but only for some heirs
Maryland's inheritance tax is a flat 10% of the clear value of property passing to a beneficiary, but only if that beneficiary is a "collateral" heir or unrelated person. Close family is exempt:
| Who inherits | Rate |
|---|---|
| Surviving spouse · children, grandchildren & other lineal descendants · spouse of a child or lineal descendant · parents & grandparents · stepchildren & stepparents · siblings · registered domestic partner (deaths on/after 10/1/2023) · 501(c)(3) charities | 0% (exempt) |
| Nieces, nephews, aunts, uncles, cousins, friends, and all other individuals or non-exempt organizations | 10% |
Two things surprise people here. First, siblings are exempt in Maryland (deaths on or after July 1, 2000); in neighboring Pennsylvania they pay 12%. Second, there's no sliding scale: a taxable heir pays 10% whether they inherit $5,000 or $500,000. A few smaller exemptions also help: life insurance paid to a named beneficiary, property passing to any one person totaling $1,000 or less, and property administered as a small estate (generally estates up to $50,000) are exempt from the tax.
Maryland's second death tax: the estate tax
Separate from the inheritance tax, Maryland levies its own estate tax, but only on estates whose gross value meets the exemption threshold: $5.0 million for deaths in 2019 and later. If the estate is over that line, the personal representative files Maryland Form MET-1 with the Comptroller of Maryland within 9 months of the date of death (extensions are available). Surviving spouses can elect portability of a predeceased spouse's unused exemption.
If both taxes apply, it isn't double taxation: inheritance tax paid to the Register of Wills is credited against the Maryland estate tax, dollar for dollar.
When is the inheritance tax actually due?
This is the part that works differently from other states. There's no fixed "9 months after death" clock on Maryland's inheritance tax itself:
- Probate property: the tax is due when the property is distributed: it's paid with the Administration Account the personal representative files with the county Register of Wills.
- Non-probate property (jointly held assets, beneficiary-designated assets): the Register assesses the tax from the estate's Information Report and sends an invoice. Miss the invoice by 30 days and a 10% penalty plus interest is added.
Most wills include a "tax clause" directing the estate to pay the inheritance tax rather than the individual heirs. Check for one early: it changes who writes the check.
The deadlines that DO run on a clock
While the inheritance tax waits for distribution, the probate process itself has hard deadlines, most counted from the date the personal representative is appointed:
| Filing | Deadline |
|---|---|
| List of interested persons | Within 20 days of appointment |
| Inventory & Information Report | Within 3 months of appointment |
| Creditor claims cut-off | Generally 6 months from date of death (or 2 months after direct notice to a creditor) |
| Initial account | Within 9 months of appointment, then every 6 months |
| Maryland estate tax return (MET-1), if required | 9 months from date of death |
Maryland inheritance tax calculator (free)
Pick the heir's relationship and enter what they inherit:
Estimate only, per heir, using the Register of Wills' published rates (verified July 2026, deaths on/after 7/1/2000). Exempt assets (like life insurance to a named beneficiary), small-estate administration, and the $1,000 per-person exemption can change the result; confirm with your county Register of Wills or a CPA before paying.
How probate works in Maryland
Maryland handles probate through the county Register of Wills, with disputes heard by the Orphans' Court. The personal representative is appointed, files the inventory and information report, keeps regular accounts, pays valid claims and taxes, and distributes what remains. Estates valued up to $50,000 can usually use the faster small estate process, which is also exempt from inheritance tax. Regular estates can often elect modified administration (a streamlined track with a final report at 10 months and distribution by 12) when all residuary heirs are exempt individuals and consent.
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Frequently asked questions
What is the Maryland inheritance tax rate?
Maryland's inheritance tax is a flat 10% on the clear value of property passing to "collateral" heirs: nieces, nephews, aunts, uncles, cousins, friends, and other individuals who are not close family. Close relatives are exempt: for deaths on or after July 1, 2000, a spouse, child or other lineal descendant, spouse of a child, parent, grandparent, stepchild, stepparent, and siblings pay no Maryland inheritance tax.
Who is exempt from Maryland inheritance tax?
For deaths on or after July 1, 2000: the surviving spouse, children and other lineal descendants, the spouse of a child or lineal descendant, parents, grandparents, stepchildren, stepparents, and siblings are all exempt. Registered domestic partners are exempt for deaths on or after October 1, 2023. Charities exempt under IRC 501(c)(3) also pay nothing, and property administered as a small estate is exempt.
Does Maryland have both an inheritance tax and an estate tax?
Yes. Maryland is the only state with both. The inheritance tax (10% on non-exempt heirs) is collected by the county Register of Wills. The separate Maryland estate tax applies only to estates over the exemption amount ($5.0 million for deaths in 2019 and later) and is paid to the Comptroller of Maryland with Form MET-1, due 9 months after death. Inheritance tax paid is credited against the estate tax, so estates are not double-taxed on the same dollars.
When is Maryland inheritance tax due?
Unlike most death taxes, Maryland's inheritance tax on probate property is not due on a fixed date after death; it is due when the property is distributed, paid alongside the Administration Account the personal representative files with the Register of Wills. For non-probate property, the Register issues an invoice; a 10% penalty plus interest applies if it is not paid within 30 days.
How much is Maryland inheritance tax on $100,000?
It depends entirely on who inherits. A child, spouse, parent, grandchild, sibling, or stepchild inheriting $100,000 owes $0, because they are exempt. A niece, nephew, cousin, or friend inheriting $100,000 owes a flat 10%, or about $10,000.
What are the key probate deadlines for a Maryland personal representative?
From the date the personal representative is appointed: the list of interested persons is due within 20 days, the inventory and information report within 3 months, and the initial account within 9 months (then every 6 months until the estate closes). Creditor claims are generally cut off 6 months from the date of death. The Maryland estate tax return (MET-1), if required, is due 9 months after death.