No. Florida does not have an inheritance tax, and it does not have a state estate tax. If you inherit money or property from someone who lived in Florida, the state takes nothing. The only death tax that can apply is the federal estate tax, and in 2026 it only reaches estates worth more than $15 million per person. Heirs can still owe other taxes, though, and Florida residents can be pulled into another state’s tax system. This guide explains the Florida inheritance tax rules for 2026 and how a Florida estate planning attorney can help protect what you leave behind.
Does Florida Have an Inheritance Tax?
No. There is no inheritance tax in Florida. Beneficiaries do not pay any state tax on the cash, real estate, investments or personal property they receive, no matter how much they inherit or how they are related to the person who died.
So is inheritance taxable in Florida? Not at the state level. Federal law does not treat an inheritance as taxable income either. The exceptions are certain assets, such as traditional retirement accounts, that carry their own income tax rules. We cover those below.
Does Florida Have an Estate Tax?
No. Florida’s old estate tax was tied to a federal credit for state death taxes. When that credit was phased out, the Florida estate tax disappeared with it. No Florida estate tax applies to anyone who died after December 31, 2004, and the Florida Constitution limits the state’s ability to bring one back.
You may still see one Florida form in an estate: Form DR 312, the Affidavit of No Florida Estate Tax Due. A personal representative records it in the county’s official records to confirm no Florida estate tax is owed, which helps clear title to Florida real estate.
The Difference Between Inheritance Tax and Estate Tax
People often use these terms interchangeably, but they are different taxes. The main difference between inheritance tax and estate tax is who pays it.
| Estate Tax | Inheritance Tax | |
|---|---|---|
| Who pays | The estate, before assets are distributed | Each beneficiary who receives property |
| What it is based on | The total value of everything the person owned | The amount each heir receives and their relationship to the person who died |
| Florida | None | None |
| Federal | Yes, above $15 million per person in 2026 | None |
| Other states | 12 states and Washington, D.C. | 5 states |
In short, an estate tax is charged on the estate as a whole. An inheritance tax is charged on each person who inherits. Florida charges neither.
Florida Estate Tax 2026: The Federal Rules You Need to Know
Because Florida has no estate tax of its own, the federal estate tax is the only one most Florida families need to think about. The 2026 rules are more generous than ever.
The $15 Million Federal Exemption
In 2026, each person can pass up to $15 million free of federal estate tax. A married couple can shield up to $30 million. The One Big Beautiful Bill Act, signed on July 4, 2025, made this higher exemption permanent and indexed it for inflation. Without that law, the exemption would have been cut roughly in half in 2026.
For the vast majority of Florida families, that means no estate tax is owed at the state or federal level.
How Much Is the Federal Estate Tax?
If an estate is larger than the exemption, the amount above it is taxed at up to 40%. For example, a single person who dies in 2026 with a $16 million estate has $1 million above the exemption. That estate could owe about $400,000 in federal estate tax.
So how much is inheritance tax in Florida? Zero. The only tax risk is the federal estate tax, and only for estates above the exemption.
Portability for Married Couples
When a married person dies, any exemption they did not use can pass to the surviving spouse. This is called portability. It is not automatic. The personal representative must file a federal estate tax return, IRS Form 706, to claim it, even when no tax is owed. The return is generally due nine months after death, and the IRS offers simplified relief for late portability elections in many cases.
Skipping this filing is one of the most expensive mistakes a surviving spouse can make, especially if the couple’s assets may grow over time.
Lifetime Gifts and the Annual Exclusion
The federal estate and gift taxes share one lifetime exemption. In 2026, you can give up to $19,000 per person, per year, without touching that exemption. A married couple can give $38,000 per recipient. Gifts above that amount require a gift tax return, IRS Form 709, but usually no tax is due until you exceed the lifetime exemption.
Gifts to a spouse who is a U.S. citizen are unlimited. Gifts to a spouse who is not a U.S. citizen are limited to $194,000 per year in 2026.
When Florida Residents Can Owe Another State’s Tax
Florida does not tax inheritances, but other states do, and their rules can still reach Florida families.
States With an Inheritance Tax
Five states charge an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Iowa repealed its inheritance tax starting in 2025.
These taxes generally depend on where the person who died lived and where their real estate is located, not where the heir lives. If you live in Florida and inherit from a parent in Pennsylvania, you may still owe Pennsylvania inheritance tax. Spouses are usually exempt, and close relatives often pay a lower rate or nothing at all.
States With an Estate Tax
Twelve states and Washington, D.C. charge their own estate tax, often with an exemption far below the federal $15 million. They include New York, Massachusetts, Illinois and others. A Florida resident who still owns real estate in one of these states can owe that state’s estate tax on the property.
This is also why clear Florida residency matters for anyone who moved here from another state. Filing a Florida declaration of domicile and cutting ties with your former state helps prevent it from claiming your estate.
Taxes Heirs May Still Owe in Florida
No inheritance tax does not always mean no tax at all. These are the taxes Florida heirs most often run into.
Capital Gains Tax on Inherited Property
When you inherit property, its tax basis usually steps up to its fair market value on the date of death. If you sell soon after, there is often little or no taxable gain. If the property grows in value before you sell, you pay capital gains tax only on the growth. Our guide to capital gains taxes on inherited property explains how this works.
Income Tax on Inherited Retirement Accounts
Money withdrawn from an inherited traditional IRA or 401(k) is taxed as ordinary income on your federal return. Most beneficiaries who are not the surviving spouse must empty the account within 10 years. Florida has no state income tax, so these withdrawals are taxed only at the federal level.
Property Taxes on an Inherited Home
The previous owner’s homestead exemption and Save Our Homes cap do not automatically pass to you. Unless the home becomes your own homestead, expect the property to be reassessed at market value, which can mean a much higher tax bill.
Final Income Tax Returns
The personal representative must file the final individual income tax return for the person who died. If the estate earns income while it is being administered, it may also need to file an estate income tax return, IRS Form 1041.
Florida Estate Tax Planning Strategies
Even without a state tax, Florida estate tax planning still matters for larger estates, married couples and anyone with ties to another state.
- Use a revocable living trust. A trust avoids probate and keeps your estate private. On its own, it does not reduce estate tax, but it is the foundation for most tax planning. An experienced trust attorney can structure it to protect a surviving spouse and your children.
- Consider an irrevocable trust for large estates. Assets moved into an irrevocable trust, such as an irrevocable life insurance trust, can be removed from your taxable estate. Learn the difference between revocable and irrevocable trusts before choosing one.
- Make annual exclusion gifts. Giving up to $19,000 per person each year reduces your estate over time without using your lifetime exemption.
- Protect portability. Make sure your spouse knows to file Form 706 after your death to lock in your unused exemption.
- Update an old will. Many wills written years ago use tax formulas tied to old exemption amounts. With a $15 million exemption, those formulas can send far more or far less to a spouse than you intended. A wills attorney can review and correct them.
- Establish clear Florida domicile. If you moved from a state with an estate or inheritance tax, take every step to make Florida your legal home.
Frequently Asked Questions
Is inheritance taxable in Florida?
No. Florida does not tax inheritances, and federal law does not treat an inheritance as income. Withdrawals from inherited traditional retirement accounts are the main exception, since they are subject to federal income tax.
How much is inheritance tax in Florida?
Zero. Florida has no inheritance tax. The federal estate tax only applies to estates worth more than $15 million per person in 2026.
Do I pay taxes on a house I inherited in Florida?
You do not pay inheritance tax on it. You will owe property taxes going forward, which may increase because the prior owner’s homestead benefits do not transfer to you. If you sell the home for more than its value on the date of death, you may owe capital gains tax on the difference.
What is the federal estate tax exemption for 2026?
The federal estate tax exemption is $15 million per person, or $30 million for a married couple, in 2026. It is now permanent and adjusted each year for inflation.
Do I need to file an estate tax return in Florida?
There is no Florida estate tax return. A federal estate tax return is only required if the estate exceeds the federal exemption, or if a surviving spouse wants to claim portability.
Plan Ahead With a Florida Estate Planning Attorney
Florida’s tax rules are simple. Protecting a larger estate, a surviving spouse or property in another state is not. Attorney Yanitza Schoonover personally drafts every estate plan, provides a flat fee quote in writing before any work begins and offers service in English and Spanish.
Call (305) 299-7496 or schedule a free consultation to review your estate plan.
