Maryland estate tax, inheritance tax & probate costs

What the Maryland Estate Data Reveals

Maryland layers a state estate tax on top of the federal regime, exemption of $5,000,000 with rates from 0.8% to 16%, and spousal portability is not recognized. For estates above this state threshold but below the permanent federal $15M exemption, state law is the binding constraint, which is exactly the bracket most affluent households fall into. Beneficiaries separately face a state inheritance tax; spouses are exempt, but distant relatives and unrelated heirs pay the highest rates under Maryland law.

IRS Statistics of Income data show 138 federal estate tax returns filed by Maryland residents in the most recent available year (filing year 2023), reporting $3.35 billion in combined gross estate value. Net federal estate tax paid totaled $0.30 billion that year. Across the multi-year IRS SOI series above, Maryland averages roughly 117 taxable filings per year, with an effective federal rate on reported gross estates of about 6.9%.

Probate itself typically runs 9–18 months in Maryland (roughly 14 months on average), with court filing fees of $100–$1,000. Attorney compensation is set by statute at approximately 5% of the estate, which is a material fixed cost even for uncontested estates. Maryland does offer a simplified small-estate track for estates under $50,000, which most families use to bypass full formal probate. Because Maryland has not adopted the UPC, probate practice can vary materially by county and judicial district. As a common-law (separate property) state, Maryland treats each spouse's holdings individually unless jointly titled, so titling choices drive what actually enters the probate estate.