Proposed Changes to the Maryland Estate and Inheritance Tax Laws Were Not Enacted
On January 15, 2025, Governor Wes Moore released the Moore-Miller administration’s FY 2026 budget proposal. Lowering the Maryland estate tax exemption from $5,000,000 to $2,000,000 and elimination of the inheritance tax were both proposed in the budget.
The 2025 Maryland legislative session ended on April 7, 2025, and the proposed reduction of the Maryland estate tax exemption from $5,000,000 to $2,000,000 was rejected. Hence, the Maryland estate tax exemption remains at $5,000,000 per person.
Additionally, the proposed repeal of the inheritance tax was rejected. The inheritance tax remains in effect for collateral heirs. There is a full credit against the estate tax for any inheritance tax that is paid, assuming the value of the estate exceeds the estate tax exemption and estate tax is owed.
If you have any questions regarding your estate plan and the Maryland estate and inheritance tax laws, contact Esther Streete at 410-266-9909.