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Maryland Estate Tax: Threshold & Rates

The MET-1 form itself lays out the math in nine lines — here's exactly what it computes, and the older calculation running quietly alongside it.

Tax-General §7-309, Form MET-1

By the FigureMyTax Editorial Team · Reviewed 2026 · How we calculate

Quick answer: take the taxable estate, subtract $5,000,000, multiply the rest by 16%. Run your own numbers in the Maryland estate tax calculator.

Line 9, straight from the actual return

Confirmed current: Form MET-1 subtracts the $5,000,000 exclusion amount (plus any Maryland deceased spousal unused exclusion) from the Maryland estate tax base, then multiplies that result by 16% (.16) on line 9 — this is the headline number nearly everyone means when they say "Maryland's estate tax rate."

A second, older calculation runs alongside it

Schedule B computes a separate credit using a decades-old federal state-death-tax-credit table (originally from IRC §2011, before Congress phased that credit out), applied to the FULL adjusted taxable estate rather than just the amount over $5,000,000. The actual Maryland estate tax owed is the lesser of the line-9 figure and this Schedule B figure — but for the overwhelming majority of estates, the straightforward 16%-of-excess number from line 9 is already the smaller, binding one.

The exemption doesn't move anymore

Maryland's exemption finished a five-year phase-up to $5,000,000 for deaths in 2019 and later, and unlike the federal exemption, it isn't indexed for inflation — it has stayed exactly at $5,000,000 ever since.

Facing probate in Maryland?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Maryland attorney

The return is due 9 months after death, the same deadline as the federal Form 706, and any Maryland inheritance tax already paid can offset the estate tax bill on line 11 of the return.

Threshold & rates — frequently asked questions

How does the MET-1 form actually compute the tax?

Line 9 takes the Maryland taxable estate, subtracts the $5,000,000 exclusion (plus any deceased spousal unused exclusion), and multiplies the result by 16%.

Is there really a second calculation that could lower the tax?

Yes — Schedule B computes a credit using a decades-old federal state-death-tax-credit table, applied to the full adjusted taxable estate. The actual liability is the lesser of the two computations, though the 16%-of-excess figure is almost always the smaller, binding one for a typical estate.

Is the $5,000,000 exemption indexed for inflation?

No — unlike the federal exemption, Maryland's $5,000,000 figure is fixed and has not moved since it finished phasing up in 2019.

When is the Maryland estate tax return due?

Form MET-1 is due 9 months after the date of death, the same deadline as the federal Form 706.

Keep going

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This page provides general guidance only and is not legal or tax advice. Based on Tax-General §7-309, Form MET-1, and Administrative Release No. 30. Confirm current figures with the Comptroller of Maryland or a licensed attorney before acting.