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

While there is no federal inheritance tax, the IRS does impose a federal estate tax, and the exemption threshold is adjusted annually for inflation.

From MarketWatch • Feb. 26, 2026

Tuesday's NFU conference was the first to be held since its abrupt closure, in addition to Labour's partial U-turn on farm inheritance tax proposals.

From BBC • Feb. 24, 2026

The good news: many states exempt children from inheritance tax.

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

It imposes an inheritance tax on the heirs to landed property, which they find it hard to meet, especially when their tenants have abandoned their farms rather than try to pay the rent.

From The Leading Facts of English History by Montgomery, D. H. (David Henry)

Related Words

• death tax
• estate tax