Do I Owe Maryland Inheritance Tax If I Live Out of State?

Your own address doesn't matter here — but in Maryland, a second tax can be quietly stacked on top of the one you were expecting.

Tax-General §7-201 et seq.

Quick answer: yes, potentially — where you live is irrelevant. What matters is where the decedent lived (or owned property) and how you're related to them. Check your own numbers with the Maryland inheritance tax calculator.

It follows the decedent, never the heir

Maryland inheritance tax is triggered by the decedent's residency and property, not the beneficiary's. A niece living in Texas inheriting from a Maryland aunt owes Maryland's flat 10% just the same as if she lived in Maryland herself — there's no exemption for being an out-of-state recipient.

Maryland's real twist: a second tax can stack on top

Exempt relationships escape both

For exempt beneficiaries — children, siblings, parents, and the rest of the exempt list — only the estate tax can ever apply, and only at the estate level before distribution. No inheritance tax lands on top for these relationships, no matter where that beneficiary lives.

Your own state's rules genuinely don't matter

Only five states have an inheritance tax at all, and none of them base the tax on the recipient's residency. Whether the out-of-state heir lives in a no-tax state like Florida or Texas, or in one of the other four inheritance-tax states, has no bearing on a Maryland bill.

Facing probate in Maryland?

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

Talk to a Maryland attorney

See Maryland Estate Tax Calculator to check whether the estate-level tax applies before working out any individual inheritance tax owed.

Living out of state — frequently asked questions

I live in another state - do I still owe Maryland inheritance tax?

It depends on your relationship to the decedent, not where you live. If the person who died was a Maryland resident (or owned Maryland tangible property) and you're a non-exempt heir — a niece, nephew, cousin, or friend — you owe Maryland's 10%, regardless of your own state of residence.

Can both Maryland estate tax and inheritance tax apply to the same estate?

Yes — Maryland is the only state that charges both. If the decedent was unmarried and left a meaningful share to non-exempt beneficiaries, the estate can pay Maryland estate tax first, and each non-exempt heir separately pays 10% inheritance tax on their own share.

Does being an exempt relationship protect against both taxes?

For exempt beneficiaries like children and siblings, only the estate tax can apply at the estate level before distribution — no additional inheritance tax is owed by that beneficiary, regardless of where they live.

Does my own state's tax rules matter at all here?

No — only 5 states have an inheritance tax, and none of them tax an inheritance based on where the recipient lives. Your own state's rules are simply irrelevant to a Maryland inheritance tax bill.

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