Kentucky Inheritance Tax: Rates & Who Pays

Quick answer: Class A (now including nieces and nephews) is exempt; Class B gets $1,000 exempt then 4%-16%; Class C gets $500 exempt then 6%-16%. Run your own numbers in the Kentucky inheritance tax calculator.

Class B's full graduated schedule

Confirmed current, straight from the statute: Class B is taxed at 4% up to $10,000, 5% from $10,000 to $20,000, 6% from $20,000 to $30,000, 8% from $30,000 to $45,000, 10% from $45,000 to $60,000, 12% from $60,000 to $100,000, 14% from $100,000 to $200,000, and 16% above $200,000, after a $1,000 exemption.

Class C's full graduated schedule

Class C is taxed at 6% up to $10,000, 8% from $10,000 to $20,000, 10% from $20,000 to $30,000, 12% from $30,000 to $45,000, 14% from $45,000 to $60,000, and 16% above $60,000, after a smaller $500 exemption.

Who's left in Class B now

With nieces and nephews moved to Class A, Class B now covers a daughter-in-law, son-in-law, aunt, uncle, or a great-grandchild who is the grandchild of a child by blood, a stepchild, or a child adopted during infancy.

By blood vs. by marriage still matters

A niece or nephew by blood, including half-blood, is Class A and exempt. A niece or nephew by marriage, and a great-niece or great-nephew, are still Class C — the smaller exemption and the steeper starting rate.

Facing probate in Kentucky?

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

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See Kentucky Inheritance Tax Exemptions for the spousal election and other carve-outs that apply on top of these class-based rates.

Rates & who pays — frequently asked questions

What is the exact Class B rate schedule?

After the $1,000 exemption: 4% up to $10,000, 5% from $10,000 to $20,000, 6% from $20,000 to $30,000, 8% from $30,000 to $45,000, 10% from $45,000 to $60,000, 12% from $60,000 to $100,000, 14% from $100,000 to $200,000, and 16% above $200,000.

What is the exact Class C rate schedule?

After the $500 exemption: 6% up to $10,000, 8% from $10,000 to $20,000, 10% from $20,000 to $30,000, 12% from $30,000 to $45,000, 14% from $45,000 to $60,000, and 16% above $60,000.

Who exactly is in Class B now that nieces and nephews moved to Class A?

A daughter-in-law, son-in-law, aunt, uncle, or a great-grandchild who is the grandchild of a child by blood, a stepchild, or a child adopted during infancy.

Does a niece or nephew by marriage get the Class A exemption too?

No — only a niece or nephew by blood (including half-blood) moved to Class A. A niece or nephew by marriage, and a great-niece or great-nephew, remain Class C.

This page provides general guidance only and is not legal or tax advice. Based on KRS §140.070, as amended by 2026 Ky. Acts ch. 198. Confirm current figures with the Kentucky Department of Revenue or a licensed attorney before acting.