Florida has no state inheritance tax and no state estate tax. Beneficiaries don’t pay Florida tax on what they inherit. A federal estate tax can apply only to very large estates above the federal exemption, which most Florida estates never reach.
Is there an inheritance tax in Florida?
No — Florida does not have an inheritance tax. An inheritance tax is a tax the person who receives money or property pays on what they inherit.
Florida has never charged one. Whether you inherit $5,000 or $5 million, the state of Florida takes no cut of it.
A handful of states — like Pennsylvania and Kentucky — still tax their residents on inheritances. Florida is not one of them, which is part of why so many families choose to settle here.
Does Florida have an estate tax?
No — Florida has no estate tax either. An estate tax is charged on the total value of someone’s estate before it passes to their heirs.
Florida repealed its estate tax in 2005, when a federal credit the state relied on was phased out. Since then, no Florida estate has owed a single dollar in state estate tax.
This is one reason Florida is such a popular place to retire and pass wealth to the next generation.
Could your estate still owe federal estate tax?
Yes — but only the very largest estates do. The federal estate tax applies only to estates worth more than the federal exemption, which is roughly $15 million per person in 2026.
A married couple can shield about $30 million combined. For the overwhelming majority of Florida families, the estate sits far below that line, so no federal estate tax is due.
If your estate is close to that threshold, planning tools such as trusts and lifetime gifts can reduce or remove the bill entirely.
If your estate is large enough to brush against the federal limit — or you simply want your wishes followed exactly — this is the moment a plan matters. I help Orlando families structure wills, trusts, and gifts that protect what they have built. Start with a conversation about your estate planning options.
What if you inherit property in another state?
The answer depends on where the property sits — not where you live. Florida charges no inheritance tax, but the state where an asset is located can have its own rules.
If you inherit real estate or assets in a state that still taxes inheritances — such as Pennsylvania, New Jersey, or Maryland — that state’s tax may apply.
This catches many Florida families by surprise when a relative leaves them an out-of-state home. It is worth checking the rules for the property’s location early.
Do you have to report an inheritance on your taxes in Florida?
No — Florida has no state income tax, so there is nothing to report at the state level. At the federal level, an inheritance itself is not taxable income, and you do not report the money you receive.
Income the inherited asset earns afterward is different. Interest, dividends, or rent the asset produces is taxable in the normal way.
Inherited retirement accounts, such as IRAs and 401(k)s, follow their own withdrawal rules and can trigger income tax when you take the money out.
Frequently Asked Questions About Florida Inheritance Tax
Is there an inheritance tax in Florida?
No. Florida has no inheritance tax, so beneficiaries receive what they inherit without paying any state tax on it. Whether the inheritance is small or large, the state of Florida takes nothing from money or property passed to heirs.
Does Florida have an estate tax?
No. Florida repealed its state estate tax in 2005 and has not charged one since. No Florida estate owes state estate tax, no matter its value. Only the federal estate tax can apply, and only to estates above the federal exemption.
How much can you inherit in Florida without paying taxes?
In Florida you can inherit any amount without paying state inheritance or estate tax — there is no limit. Federal estate tax only applies to estates worth more than about $15 million per person in 2026, which affects very few families.
Do beneficiaries pay taxes on inherited property in Florida?
No. Beneficiaries in Florida pay no state tax on inherited property, and the inheritance itself is not taxable income federally. However, income the property later earns — such as rent or dividends — is taxable, and inherited retirement accounts have separate withdrawal rules.
What is the difference between an inheritance tax and an estate tax?
An estate tax is charged on the total estate before assets are distributed, and the estate pays it. An inheritance tax is charged on what each beneficiary receives, and the recipient pays it. Florida has neither, though federal estate tax can apply to very large estates.
Does Florida have an inheritance tax?
No — Florida has neither a state inheritance tax nor a state estate tax.
Will my heirs pay tax on what they inherit in Florida?
Not to Florida. Only a federal estate tax could apply, and only to estates above the federal exemption.
Is there a difference between estate tax and inheritance tax?
Yes — estate tax is paid by the estate, inheritance tax by the beneficiary. Florida imposes neither.
Ready to protect your family’s inheritance?
Ready to make sure your estate passes to the people you love — cleanly, and with no surprises? At Lumsden Law, I build estate plans that protect Florida families and keep your wishes at the centre. Explore estate planning at Lumsden Law, or call (407) 798-7744 — I’ll make sure you feel supported every step of the way.