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.

---

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

---

Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

His tenure has been marked by numerous U-turns on issues big and small, from whether to issue national ID cards to an inheritance tax on farmers.

From The Wall Street Journal • May 8, 2026

Samsung confirmed on Sunday that the final payment had been made, noting that the sum is equivalent to roughly one and a half times the country's total inheritance tax revenue for 2024.

From BBC • May 4, 2026

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

On the whole, the inheritance tax is an important addition to our tax system.

From Problems in American Democracy by Williamson, Thames Ross

Related Words

• death tax
• estate tax