Maryland Inheritance Tax: Rates & Who Pays

Quick answer: 10% flat, but only for beneficiaries outside a specific, unusually wide exempt list. Run your own numbers in the Maryland inheritance tax calculator.

The exempt list, straight from the statute

Straight from Tax-General §7-203: the inheritance tax does not apply to property passing to a grandparent, a parent, a spouse, a child or lineal descendant of a child, a spouse of a child or lineal descendant, a surviving spouse of a deceased child or lineal descendant who was married to them at the time of death, a brother or sister, or a corporation, partnership, or LLC wholly owned by these relations.

Stepchildren count fully

Stepchildren and former stepchildren are exempt on the same footing as biological and adopted children — a blended family doesn't lose this exemption just because a marriage that created the step-relationship later ended.

Registered domestic partners qualify too

For deaths on or after October 1, 2023, a registered domestic partner is treated like a spouse for this exemption — the surviving partner must provide an Affidavit of Domestic Partnership or two independent proofs of the partnership to claim it.

Who's actually left paying 10%

Once the exempt list above is excluded, what remains is mostly nieces, nephews, aunts, uncles, cousins, friends, and unmarried partners who never registered as domestic partners — collateral heirs with no qualifying relationship to the decedent.

Facing probate in Maryland?

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

Talk to a Maryland attorney

See Maryland Inheritance Tax Exemptions for the smaller, asset-specific carve-outs that apply on top of this relationship-based list.

Rates & who pays — frequently asked questions

What is the exact list of exempt relationships in Maryland?

A grandparent, parent, spouse, child or lineal descendant of a child, spouse of a child or lineal descendant, surviving spouse of a deceased child, brother or sister, and certain corporations wholly owned by these relations, under Tax-General §7-203.

Are stepchildren treated the same as biological children?

Yes — stepchildren and former stepchildren are exempt in Maryland, on the same footing as biological and adopted children.

Does a registered domestic partner qualify for the spousal exemption?

Yes, for deaths on or after October 1, 2023 — the surviving partner must provide an Affidavit of Domestic Partnership or two proofs of partnership to qualify.

Who is left paying the 10% rate after all these exemptions?

Mostly nieces, nephews, aunts, uncles, cousins, friends, and unmarried partners who haven't registered as domestic partners — collateral heirs with no exempt relationship to the decedent.

This page provides general guidance only and is not legal or tax advice. Based on Tax-General §7-202, §7-203. Confirm current figures with the Maryland Register of Wills or a licensed attorney before acting.