Does Indiana have an inheritance tax?

No. Indiana repealed its inheritance tax for individuals who died after December 31, 2012. There is no Indiana inheritance tax and no Indiana estate tax today, regardless of how you are related to the deceased or how much you inherit.

Did Indiana ever have an inheritance tax?

Yes. Indiana levied an inheritance tax for many years, with rates that varied by the heir's relationship to the deceased. The legislature phased it out and fully eliminated it for deaths occurring after 2012, so it no longer applies.

Could I still owe a federal estate tax in Indiana?

Only on very large estates. The federal estate tax applies to the total estate above the exemption, which is $13.61 million per individual in 2024, at a top rate of 40%. It is paid by the estate, not by individual heirs.

Does the relationship to the deceased matter in Indiana?

Not for tax purposes anymore. Because Indiana has no inheritance tax, a spouse, child, sibling, or unrelated heir all owe $0 in Indiana inheritance tax. Relationship only mattered under the old, now-repealed law.

What is the unlimited marital deduction?

A federal rule that lets one spouse leave any amount to a surviving spouse with no federal estate tax. If the entire estate passes to a spouse, the federal estate tax is deferred and no tax is due at the first death.

Indiana Inheritance Tax Calculator

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If you are inheriting money or property in Indiana, the good news is simple: Indiana has no inheritance tax and no estate tax. This calculator confirms your Indiana liability is zero and then checks the one death tax that can still apply — the federal estate tax on very large estates.

How it works

Indiana repealed its inheritance tax for deaths after December 31, 2012. So the Indiana side of the calculation is always:

Indiana inheritance tax = $0   (any heir, any amount)

The only remaining death tax is federal, and it applies to the whole estate, not to individual heirs. In 2024 the federal exemption is 13,610,000 dollars per individual, and value above it is taxed at up to 40 percent. An unlimited marital deduction means anything left to a surviving spouse passes free of federal estate tax.

Example

A child inherits 500,000 dollars from a parent who lived in Indiana. The Indiana inheritance tax is 0 dollars. If the parent’s total estate was 2,000,000 dollars, that is well below the federal exemption, so the federal estate tax is also 0 dollars and the child keeps the full inheritance.

Notes

This tool is informational. Large or complex estates can involve gift-tax history, portability of a deceased spouse’s exemption, and state estate taxes in other states where property is located. For real planning, consult an estate attorney and verify at in.gov/dor and irs.gov.