What is Maryland's estate tax exemption?

Maryland exempts the first $5,000,000 of a taxable estate. Unlike the federal exemption, this amount is fixed and is not indexed to inflation, so it stays at $5 million each year until the legislature changes it.

What is the Maryland estate tax rate?

Maryland applies a graduated rate schedule to the amount above the exemption, with a top marginal rate of 16%. The schedule follows the old federal state-death-tax-credit table, so the effective rate on the excess climbs toward 16% for large estates.

Does Maryland have both an estate and an inheritance tax?

Yes. Maryland is one of the very few states with both. To prevent double taxation, the estate tax is reduced by any Maryland inheritance tax paid on the same assets, which the tool subtracts as a credit.

Can a surviving spouse use the deceased spouse's exemption?

Maryland allows portability of a deceased spouse's unused exemption (DSUE) if the election is properly made on a timely estate tax return. Enter the ported amount in the extra-exemption field to raise the surviving spouse's available exemption.

Are bequests to a spouse taxed?

No. Assets passing to a surviving spouse generally qualify for the unlimited marital deduction and are removed from the taxable estate before this calculation. Enter only the net taxable estate after that deduction.

Maryland Estate Tax Calculator

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Maryland is unusual in levying both an estate tax and an inheritance tax. The estate tax falls on large estates — those above a fixed $5,000,000 exemption — and is computed on a graduated schedule that tops out at 16%. This calculator applies that schedule, the spousal portability option, and the credit for any inheritance tax already paid.

How it works

Only the value above the exemption is taxed, and it runs through a graduated table:

exemption       = $5,000,000 + any ported spousal exemption (DSUE)
taxable estate  = gross estate − exemption
adjusted base   = taxable estate − $60,000   (per the §2011 worksheet)
gross tax       = graduated table on the adjusted base (0.8% → 16%)
estate tax due  = gross tax − Maryland inheritance tax paid

The graduated table means small overages are taxed lightly while large estates approach the 16% ceiling on the excess. Because the exemption isn’t indexed, more estates cross the threshold over time as asset values rise.

Notes and planning

The inheritance tax credit matters when assets pass to non-exempt heirs: tax paid there reduces the estate tax dollar-for-dollar, so the two Maryland taxes don’t simply stack. Portability lets a married couple shelter up to $10 million combined if the election is made on the first spouse’s return. This is a planning estimate using the published exemption and rate schedule — consult an estate attorney and the Maryland Comptroller for an actual filing.