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What Is the Federal Inheritance Tax Rate? There is no federal inheritance taxthat is, a tax on the sum of assets an individual receives from a deceased person. However, a federal estate tax applies to estates larger than $11.7 million for 2021 and $12.06 million for 2022.
The federal estate tax (sometimes called the death tax) is a one-time tax that is imposed at death. If you die with a certain dollar amount of assets currently, estates under $11.4 million are exempt, but this reverts back to $5 million in 2026 a federal estate tax return is required and a tax will be due.
With the inheritance tax, the person who inherits the assets pays. The estate tax, charged by the federal government and some state governments, is based on the value of property and assets at the time of the owner's death. As of 2021, the federal estate tax ranges from 18% to 40% of the inheritance amount.
There is no inheritance tax in Maine.
Your beneficiaries (the people who inherit your estate) do not normally pay tax on things they inherit. They may have related taxes to pay, for example if they get rental income from a house left to them in a will.