Does Maryland have an estate tax?

Yes. Estates over $5 million pay up to 16 percent on the amount above the threshold. Maryland is the only state with both an estate tax and an inheritance tax.

Does Maryland have an inheritance tax?

Yes. Spouses, children, grandchildren, parents, siblings, and their spouses pay nothing. Everyone else (for example nieces, nephews, cousins, friends) pays 10 percent of what they receive, after a $1,000 exemption. Any inheritance tax paid is credited against the estate tax.

Is Maryland a community property state?

No. Maryland is a common law property state. Maryland probate goes through the Register of Wills and the Orphans' Court and takes at least six months for creditor claims, with probate fees based on the estate's size. A living trust is commonly used, and with both state taxes, families above $5 million should plan carefully.

Does Maryland allow a transfer on death deed for real estate?

Yes, new. The Maryland Transfer on Death Deed Act took effect October 1, 2026; deeds recorded before that date do not work.

What is the small estate limit in Maryland?

Small estate administration through the Register of Wills for estates up to $50,000, or $100,000 when the surviving spouse is the only heir.

Maryland

Estate planning basics in Maryland

Maryland has a state estate tax, has an inheritance tax, is not a community property state, and allows a transfer on death deed for real estate. The details are below, in plain words, as Legacy Guard shows them to families in Maryland.

Estate planning facts for Maryland
Estate tax	Yes. Estates over $5 million pay up to 16 percent on the amount above the threshold. Maryland is the only state with both an estate tax and an inheritance tax.
Inheritance tax	Yes. Spouses, children, grandchildren, parents, siblings, and their spouses pay nothing. Everyone else (for example nieces, nephews, cousins, friends) pays 10 percent of what they receive, after a $1,000 exemption. Any inheritance tax paid is credited against the estate tax.
Community property	No. Maryland is not a community property state.
Small estate limit	Small estate administration through the Register of Wills for estates up to $50,000, or $100,000 when the surviving spouse is the only heir.
Transfer on death deed	Yes, new. The Maryland Transfer on Death Deed Act took effect October 1, 2026; deeds recorded before that date do not work.
Probate	Maryland probate goes through the Register of Wills and the Orphans' Court and takes at least six months for creditor claims, with probate fees based on the estate's size. A living trust is commonly used, and with both state taxes, families above $5 million should plan carefully.
Homestead	Maryland's Homestead Tax Credit caps the yearly increase in a home's taxable assessment for owner-occupants (apply once), and a surviving spouse gets a family allowance from the estate.
Vehicles	No beneficiary designation on a vehicle title. A vehicle passes through the estate or to a surviving spouse or next of kin by MVA form when there is no probate.
Last reviewed	October 21, 2026

State rules are general information kept current by Legacy Guard, last reviewed October 21, 2026. Your attorney's advice comes first. Figures that are adjusted each year are given for the year stated.

What this means for your plan

Maryland taxes estates above its own threshold, which is below the federal $15 million exemption. Families near the line often plan for it with gifts, trusts, or titling. Ask your attorney whether your plan accounts for it.
Because Maryland has an inheritance tax, who you leave property to can change the tax bill. Spouses and close family are usually exempt or taxed lightly; more distant heirs pay more.
A transfer on death deed can pass your home to a named person without probate. It does not replace a trust, and it needs to be coordinated with one, but it is a simple tool worth asking about.
Small estate rules only matter if little or nothing goes through probate. A funded trust and up to date beneficiary designations are what keep an estate small in the first place, and that is exactly what the Legacy Guard annual review checks each year.

Questions about Maryland

Does Maryland have an estate tax?: Yes. Estates over $5 million pay up to 16 percent on the amount above the threshold. Maryland is the only state with both an estate tax and an inheritance tax.
Does Maryland have an inheritance tax?: Yes. Spouses, children, grandchildren, parents, siblings, and their spouses pay nothing. Everyone else (for example nieces, nephews, cousins, friends) pays 10 percent of what they receive, after a $1,000 exemption. Any inheritance tax paid is credited against the estate tax.
Is Maryland a community property state?: No. Maryland is a common law property state. Maryland probate goes through the Register of Wills and the Orphans' Court and takes at least six months for creditor claims, with probate fees based on the estate's size. A living trust is commonly used, and with both state taxes, families above $5 million should plan carefully.
Does Maryland allow a transfer on death deed for real estate?: Yes, new. The Maryland Transfer on Death Deed Act took effect October 1, 2026; deeds recorded before that date do not work.
What is the small estate limit in Maryland?: Small estate administration through the Register of Wills for estates up to $50,000, or $100,000 when the surviving spouse is the only heir.

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