The State Controller's Office, Tax Administration Section, administers the Estate Tax, Inheritance Tax, and Gift Tax programs for the State of California. There is no estate tax in California.However, residents may have to pay a federal estate tax. The tax is due upon sale or transfer of an interest of real property and is payable at the time of recordation with the Alameda County Recorder. California does not have a state estate tax, but residents are still subject to the federal tax. Estate taxes have always been a hot-button issue. In California, there is no statelevel estate or inheritance tax. If you are a California resident, you do not need to worry about paying an inheritance tax. It is critical to note that California does not have an estate tax. However, there is a federal estate tax that may apply to estates of certain sizes.