Definition
Tax imposed on heirs when inheriting property, imposed in certain states (not federal).
Where you’ll meet it
How does probate work, and how long will it take?
See it in Selling a home I inherited · Step 3About this term
Only a few states impose inheritance taxes, and Georgia isn't one of them (it has no estate tax either). The federal estate tax is paid by the estate, not the heirs, and in 2026 it applies only above $15 million per person. State inheritance taxes vary.
Pro Tip
Check if state has inheritance tax; affects estate planning strategy in high-tax states.
Example
Pennsylvania taxes property a sibling inherits at 12%.