Maryland Estate & Inheritance Tax Guide
Last updated: 11 Nov 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Maryland Estate Tax & Probate — Complete Guide
What executors and families need to know about Maryland probate and estate tax: who is taxed, fixed $5,000,000 exclusion, Maryland DSUE portability on MET-1, separate inheritance tax (generally 10% on non-exempt beneficiaries), resident vs. nonresident situs, forms, deadlines, and planning. Estate tax is administered by the Comptroller of Maryland; the inheritance tax is handled by county Registers of Wills. :contentReference[oaicite:0]{index=0}
Maryland Inheritance & Probate Basics
Estate vs. inheritance tax
Maryland imposes both: a state estate tax (Comptroller) and a separate inheritance tax (Registers of Wills). Inheritance tax is generally 10% for non-exempt transferees; many close-family transfers are exempt. :contentReference[oaicite:3]{index=3}
When due
Maryland estate tax return is due 9 months after death; extension to file does not extend time to pay. File directly with the Comptroller and attach federal schedules. :contentReference[oaicite:4]{index=4}
Maryland Estate Tax — At a Glance
Need a fast estimate? Try the Maryland Estate Tax Calculator.
Official Pages, Forms & Where to File
- Comptroller of Maryland — Form MET-1 (Estate Tax Return) & Instructions (who must file, DSUE/QTIP, addresses). :contentReference[oaicite:11]{index=11}
- Payment/extension: Form MET-1E (application for extension/time to pay, attach federal 4768 if applicable). :contentReference[oaicite:12]{index=12}
- Estate tax tip sheet: “What you need to know about Maryland’s estate tax”. :contentReference[oaicite:13]{index=13}
- Inheritance tax: Registers of Wills — Inheritance Tax overview (rates, exemptions, procedures). :contentReference[oaicite:14]{index=14}
- Statutes: Md. Code, Tax–General — § 7-302 (imposition; nonresidents). :contentReference[oaicite:15]{index=15}
Maryland Situs vs. Non-Situs Property (for Nonresidents)
| Asset type | Maryland treatment | Reference |
|---|---|---|
| Real property in Maryland | Included in Maryland estate tax base | Md. Code, Tax–General § 7-302. :contentReference[oaicite:16]{index=16} |
| Tangible personal property kept in Maryland | Included | Md. Code, Tax–General § 7-302. :contentReference[oaicite:17]{index=17} |
| Intangibles (stock, cash, brokerage) | Generally outside MD base for nonresidents absent business situs | Registers of Wills / statute context. :contentReference[oaicite:18]{index=18} |
| Entity interests (LLC/partnership) | Typically intangible; watch for business-situs facts | Practice guidance; confirm facts. :contentReference[oaicite:19]{index=19} |
Document physical location (deeds, storage/garaging) and appraisals; nonresident returns often hinge on situs proof and inheritance-tax interactions. :contentReference[oaicite:20]{index=20}
Planning Ideas to Reduce Maryland Estate Tax
- Portability (DSUE). Preserve unused Maryland exclusion on a timely MET-1 to protect the survivor’s estate. :contentReference[oaicite:21]{index=21}
- Maryland-only QTIP. Elect on MET-1 (Schedule D) to defer Maryland tax at the first death even without a federal QTIP. :contentReference[oaicite:22]{index=22}
- Credit shelter trust. State-sized bypass trust remains useful given the fixed $5M exclusion and potential inheritance-tax offsets. (See local guidance.) :contentReference[oaicite:23]{index=23}
- Liquidity & timing. Stage cash for the 9-month payment; filing and payment extensions are separate and interest may apply. :contentReference[oaicite:24]{index=24}
For step-by-step implementation, see the dedicated Maryland Estate Tax Planning page or book a fixed-fee planning consult.
FAQs
Does Maryland have an inheritance tax?
Yes. Maryland imposes a separate inheritance tax (generally 10%) on transfers to non-exempt beneficiaries; it is assessed/collected by the county Register of Wills. :contentReference[oaicite:25]{index=25}
What is the Maryland estate tax exclusion and is there portability?
Exclusion is $5,000,000 (not indexed). Maryland permits a state portability (DSUE) election on MET-1, preserving the first spouse’s unused exclusion for the survivor. :contentReference[oaicite:26]{index=26}
How do nonresidents calculate Maryland estate tax?
Nonresidents are taxed on Maryland-situs real and tangible property. File MET-1 if Maryland situs exists and thresholds/elections apply. :contentReference[oaicite:27]{index=27}
When is MET-1 due and where do I file?
Due 9 months after death; file directly with the Comptroller and attach federal schedules (or pro-forma if no federal 706 is required). :contentReference[oaicite:28]{index=28}
Can I make a Maryland-only QTIP election?
Yes. Maryland allows a state-only QTIP; make the election on MET-1 (Schedule D) and keep detailed asset schedules for inclusion tracking at the survivor’s death. :contentReference[oaicite:29]{index=29}
Need help filing or planning?
We assist with Maryland probate coordination, MET-1 (estate tax), inheritance-tax coordination with the Registers of Wills, and Maryland-only QTIP/DSUE strategy.
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