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Kentucky Inheritance Tax Calculator

A recent law change moved nieces and nephews into fully exempt Class A — applying to deaths on or after January 1, 2026. Many guides online still show the old rule. Class B and C still pay real tax.

Based on KRS §140.070, §140.080 FigureMyTax Editorial Team Free · no sign-up

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

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Nieces and nephews are now Class A

Confirmed current, straight from the statute: Class A now includes a nephew, niece, or a nephew or niece of the half blood, alongside a parent, surviving spouse, child, stepchild, grandchild, brother, and sister — 2026 Ky. Acts ch. 198, enacted April 27, 2026, applies this change to estates of decedents who died on or after January 1, 2026. Before that date, nieces and nephews by blood were Class B and paid real tax; this is a genuinely recent change.

The rumor that didn't pass

A separate bill, House Bill 726, proposed exempting all of Class B from Kentucky inheritance tax entirely. That bill died in committee in 2025 and was never enacted — Class B still pays 4% to 16% after a $1,000 exemption, despite what some outdated articles still claim.

By blood vs. by marriage still matters

A niece or nephew by blood is Class A and exempt. A niece or nephew by marriage, and a great-niece or great-nephew, remain Class C — the same distinction that trips people up in several other inheritance-tax states.

Kentucky inheritance tax — frequently asked questions

Do nieces and nephews pay Kentucky inheritance tax in 2026?

No, not anymore. For deaths on or after January 1, 2026, nephews, nieces, and half-blood nephews and nieces were moved into fully exempt Class A — a genuinely recent change (enacted April 27, 2026) many older guides don't yet reflect.

What are Kentucky's inheritance tax classes?

Class A (spouse, parents, children, grandchildren, siblings, and now nieces and nephews) is fully exempt. Class B (aunts, uncles, sons/daughters-in-law, certain great-grandchildren) gets a $1,000 exemption then 4%-16%. Class C (everyone else) gets a $500 exemption then 6%-16%.

Did a bill fully exempting Class B pass in Kentucky?

No — House Bill 726, which proposed exempting Class B entirely, died in committee in 2025 and was never enacted. Class B still pays 4% to 16% after a $1,000 exemption.

Is there a Kentucky estate tax too?

No — Kentucky's separate estate tax has produced no tax since 2004. Only the inheritance tax, paid by the beneficiary, currently applies.

Kentucky inheritance tax tools & guides

Kentucky Inheritance Tax: Rates & Who PaysThe full class breakdown, explained Kentucky Inheritance Tax ExemptionsThe spousal election and other carve-outs Do I Owe KY Inheritance Tax If I Live Out of State?Why it follows the decedent, not you Kentucky Probate Cost CalculatorThe full cost picture Kentucky Executor Fee CalculatorWhat the executor gets paid

This calculator provides an estimate for general guidance only and is not legal, tax, or financial advice. Figures are based on KRS §140.070, §140.080, as amended by 2026 Ky. Acts ch. 198. Actual tax depends on the estate's full facts. Confirm current figures with the Kentucky Department of Revenue or a licensed attorney before acting.