Does Delaware have an inheritance tax?

No. Delaware repealed its inheritance tax effective 1999. Heirs receiving assets from a Delaware estate owe no state inheritance tax, regardless of how closely or distantly they were related to the deceased. The amount inherited does not change this result.

Is inheritance tax the same as estate tax?

No. Inheritance tax is paid by each heir based on what they personally receive and their relationship to the deceased. Estate tax is paid by the estate as a whole before distribution. Delaware has neither — it repealed inheritance tax in 1999 and estate tax in 2018.

Do heirs owe any tax on a Delaware inheritance?

Not on the inheritance itself at the state level. However, income generated after you inherit, and distributions from inherited tax-deferred accounts like a traditional IRA, are taxable as ordinary income. The principal you inherit is generally not taxed as income.

Which states still charge inheritance tax?

A handful of states still levy inheritance tax, including Pennsylvania, New Jersey, Kentucky, Maryland, and Nebraska, with rates that vary by the heir's relationship. Delaware is not among them, so a Delaware-based inheritance avoids this state-level tax entirely.

Could a Delaware heir owe another state's inheritance tax?

Possibly. Inheritance tax usually depends on where the deceased lived or where real property sits. If you inherit from someone in an inheritance-tax state, that state's tax may apply even though you live in Delaware. Check the deceased's state of residence.

Delaware Inheritance Tax Calculator

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Heirs in Delaware get a simple answer: there is no inheritance tax. Delaware repealed it in 1999, so it does not matter whether you are a spouse, child, or unrelated friend, or how much you inherit — the state takes nothing. This tool confirms that and flags the taxes that can still apply.

How it works

Delaware charges no inheritance tax to any class of heir:

inheritance amount → any heir relationship
delaware inheritance tax = $0   (repealed effective 1999)
note: income on inherited assets, and distributions from inherited
      tax-deferred accounts, are still taxable as ordinary income

In states that do tax inheritance, the rate rises as the relationship gets more distant — spouses and children pay little or nothing, siblings and unrelated heirs pay more. Delaware sidesteps all of that.

Example and tips

Inheriting 250,000 dollars from a Delaware resident produces zero Delaware inheritance tax whether you are the deceased’s child or an unrelated beneficiary. The one thing to watch is inherited retirement accounts: pulling money out of an inherited traditional IRA is taxable income to you, so plan those withdrawals across tax years rather than taking a lump sum that spikes your bracket.