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

An inheritance tax is paid by the recipient, and the amount typically depends on the heir’s relationship to the deceased.

From MarketWatch • Feb. 26, 2026

A handful of U.S. states impose an inheritance tax on certain inherited assets, though most offer exemptions or reduced rates for close relatives like children and spouses.

From MarketWatch • Feb. 21, 2026

Following her husband's passing, Ms Armstrong said she was incredibly worried about how the proposed changes to inheritance tax would impact their family.

From BBC • Dec. 24, 2025

“God Almighty’s put a terrible hog-tight inheritance tax on experience, girl!”

From In the Heart of a Fool by White, William Allen

Related Words

• death tax
• estate tax