How much can you inherit from your parents without paying inheritance tax?
Most people in 2026, are able to inherit any amount from their parents without paying inheritance tax. The United States does not have a federal inheritance tax — and the majority of states do not charge one either.
Which states can still charge inheritance tax?
For 2026, a state-level inheritance tax might still apply in Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.
Are children usually taxed in those states?
In the above listed states, children are generally exempt or taxed at a 0% rate. The tax tend to target more distant relatives or non-family heirs.
Could any tax be due before receiving the share?
Yes. It’s true that you might not pay inheritance tax. But the estate itself might owe "estate tax" before the money reaches you.
- Federal estate tax — applies only to very large estates over $15 million in 2026
- State estate tax — applies in specific states at lower thresholds — like Washington, Oregon or Massachusetts
What if your parents lived in Washington State?
Washington does not charge an inheritance tax. This state charges an estate tax if the total value exceeds the exclusion amount. For deaths in 2026, that exclusion is $3,076,000.
What should be checked before spending the inheritance?
Primarily, target where your parent legally lived and what the executor is filing, as well as the type of asset that was received.
- Pin down — locate the state where your parent was a resident for legal purposes
- Ask about required returns — the executor may tell you if a federal / state estate return is on the checklist
- Name the asset you’re inheriting — distributions from inherited retirement accounts — like IRAs — are frequently taxable income in the year you take them.
How can Clarity Tax Group help?
If you need an answer custom-designed for your distinct situation, reach out to Clarity Tax Group.
- Confirming whether an inheritance-tax state is involved
- Assisting the executor in organizing values as well as paperwork for any estate return
- Explaining what inherited retirement accounts mean for the personal tax return
- Preparing filings & responding to notices.