Estate Tax is a tax paid by an Estate that is over certain asset thresholds. Thus, only very large Estates are subject to an Estate Tax. There is a Federal Estate Tax and a Maryland Estate Tax. Not every state has an Estate Tax. There is also a Maryland Inheritance Tax, which is very different that the Maryland Estate Tax. It is more common for an Estate to be subject to the Maryland Inheritance Tax. More on the Maryland Inheritance Tax below.
The Estate Tax threshold for Maryland is $5 million for people who pass away in 2026, and has been at that threshold since 2019. This means that if you die and your total Estate is worth less than $5 million, the Estate owes nothing at all to the state of Maryland.
The Federal Estate Tax threshold is $15 million for people who pass away in 2026 (up from $12.91 million in 2023). Typically, heirs won't pay the Federal Estate Tax unless the value of the Estate exceeds the exemption amount.