If you inherited a house in Maryland, a 10% inheritance tax may apply. Spouses, children, grandchildren, parents, grandparents and siblings are exempt. A niece, nephew or friend usually is not, so check your relationship to the person who died before you decide what to do with the home.
Do You Pay Tax on an Inherited House in Maryland?
It depends on who you are to the person who died. The Maryland Registers of Wills describe a “collateral inheritance tax” of 10% that applies to anyone not on the exempt list. Maryland Reporter’s 2026 guide adds that the beneficiary who receives the property is the one who pays.
Nolo notes that the 10% is calculated on the “clear value” of the inherited property. Maryland is also unusual because, according to both sources, it is the only state that collects an inheritance tax and a separate estate tax.
Who Is Exempt From Maryland’s 10% Inheritance Tax?
According to the Maryland Registers of Wills, the tax does not apply to property passing to:
- A spouse or registered domestic partner
- A child, or a lineal descendant of a child (grandchildren and beyond)
- A parent or grandparent
- A brother or sister of the person who died
- The spouse of a child, or the surviving spouse of a deceased child
Nieces, nephews, cousins, friends and unmarried partners who are not registered domestic partners fall outside that list. If you are in one of those groups, the 10% rate can apply to the house.
Here is a simple, hypothetical example, not a forecast. Say a niece inherits a Maryland house valued at $350,000 at the date of death. A 10% tax on that value is $35,000. Your attorney can tell you what deductions or credits might change that number, so treat it as a starting point.
Does Maryland’s Estate Tax Apply Too?
Probably not, for most families. Maryland Reporter’s 2026 guide says the 2026 Maryland estate tax exemption is $5 million per person, so smaller estates typically avoid it. The same article reports that Governor Wes Moore proposed eliminating the inheritance tax this year, but the legislature did not pass it, so the tax remains in effect.
Tax rules can change and apply differently to each estate. Confirm the current rules with a Maryland estate attorney or your county Register of Wills before you sign anything.
How Do You Sell an Inherited House in Maryland?
Most heirs follow the same path, with some Maryland-specific steps. Each county has its own Register of Wills office, from Baltimore and Montgomery County to the Eastern Shore, and that is where the probate process starts.
- Open the estate. The Register of Wills in the county where the person lived appoints a personal representative, who manages the estate.
- Confirm who has authority to sell. The will and the court appointment decide who can sign a deed. Ask a probate attorney if you are unsure.
- Get the home valued. A date-of-death value helps with both inheritance tax and your future capital gains math.
- Meet the estate deadlines. Per the Registers of Wills, the personal representative files an inventory within three months and a first account within nine months.
- Choose how to sell. List with an agent, or sell as-is to a cash buyer.
Small estates can skip some of the process. The Registers of Wills pamphlet says that applies when assets subject to administration total $50,000 or less ($100,000 if the spouse is the sole heir). A house often pushes an estate past that line.
Will You Owe Capital Gains Tax When You Sell?
Often little or none. IRS Publication 551 explains that the basis of inherited property is generally its fair market value at the date of the owner’s death. That is called a stepped-up basis. If you sell for close to that value, your taxable gain is small.
Our full guide on how to sell an inherited house walks through taxes and timeline in more detail. We have also covered neighboring rules in New York and Pennsylvania.
Should You Sell the Inherited House As-Is for Cash?
| Path | Speed | Repairs needed | Good fit when |
|---|---|---|---|
| List with an agent | Depends on showings and the buyer’s financing | Usually yes | The home is move-in ready and no one is in a hurry |
| Sell as-is for cash | Can close in 1 to 2 weeks after you have authority to sell | No | The home needs work, heirs live out of state, or you want to settle the estate quickly |
| Keep or rent it | Ongoing | Depends | You want long-term income and can cover taxes and upkeep |
Carrying an empty house costs real money, from property taxes and insurance to utilities and upkeep. Heirs who live far away often prefer a clean, fast sale. Byrd and Co buys homes as-is across Maryland, with no repairs, no showings and no commissions. See our services for how it works.
Know someone who just inherited a Maryland home? Our Refer and Earn program pays you $500 once their sale closes, no fees and no limit. Send them our way.
Have questions about an inherited house in Maryland? Talk to the Byrd and Co team, no pressure, just real answers. Get your no-obligation cash offer once you know you have authority to sell.
Frequently Asked Questions About Inherited Houses in Maryland
Is there an inheritance tax on a house in Maryland?
Yes, for some heirs. Maryland charges a 10% inheritance tax on property passing to people outside the exempt list. Spouses, children, grandchildren, parents, grandparents and siblings are exempt.
Do I pay Maryland inheritance tax if I inherit from my parent?
No. Property passing to a child of the person who died is exempt from Maryland’s inheritance tax, according to the Maryland Registers of Wills.
Does a niece or nephew pay inheritance tax in Maryland?
Generally yes. Nieces and nephews are not on the exempt list, so the 10% inheritance tax can apply to a house they inherit.
Can I sell an inherited house in Maryland before probate is finished?
You need legal authority to sell, which usually comes from being appointed personal representative by the Register of Wills. Ask a probate attorney what your will and court appointment allow.
How fast can Byrd and Co buy an inherited Maryland house?
Once you have the legal authority to sell, we can typically close in one to two weeks. We buy as-is, so there is no need to clean out or repair the property first.
