inheritance tax

American  

noun

1. a tax levied on the right of an heir to receive a decedent's property, the rate being a percentage of the value of the property.

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inheritance tax British  

noun

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death

2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased

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Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

Not only does Florida not have a state income tax, it doesn’t have an estate tax or an inheritance tax.

From Barron's • Apr. 20, 2026

Various other changes also come into force at this time of year, including alterations to inheritance tax on farms, tax on dividends, tax relief on venture capital trusts, and homeworking tax relief.

From BBC • Apr. 5, 2026

Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania have an inheritance tax, which varies by relationship to the deceased.

From MarketWatch • Mar. 12, 2026

Here’s the bottom line: Most states that carry an inheritance tax exempt spouses and, relevant in your case, children, and/or they provide generous credits.

From MarketWatch • Feb. 21, 2026

The inheritance tax should have no terrors for the millionaire.

From Success (Second Edition) by Beaverbrook, Max Aitken, Baron

Related Words

• death tax
• estate tax