Title 7. Death Taxes — Subtitle 2. Inheritance Tax
Statutes in effect as of October 1, 2026.
Md. Code Ann., Tax-Gen. § 7-201 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–201LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Estate” means property that is subject to administration under the Estates and Trusts Article as the estate of a decedent.
(c)
(1)
“Less than absolute interest” means an interest less than an absolute interest in property, in trust or otherwise.
(2)
“Less than absolute interest” includes:
(i)
a life estate;
(ii)
an interest for a term of years;
(iii)
a contingent or vested remainder, or executory or reversionary interest that a person other than the decedent creates; or
(iv)
any other interest that is less than absolute.
(d)
(1)
“Property that passes from a decedent” includes:
(i)
property that passes, by will or under the intestate laws of the State, at or after the death of a decedent, in trust or otherwise, to or for the use of another person;
(ii)
property in which, at death, a decedent had an interest as a joint tenant; or
(iii)
except for a bona fide sale for an adequate and full consideration in money or money’s worth, property that passes by an inter vivos transfer by a decedent, in trust or otherwise, if:
(1)
the transfer is made in contemplation of death;
(2)
the transfer of a material part of the property of the decedent in the nature of a final disposition or distribution is made by the decedent within 2 years before death and is not shown to not have been made in contemplation of death;
(3)
the transfer is intended to take effect in possession or enjoyment at or after the death of the decedent; or
(4)
under the transfer, the decedent retained any dominion over the transferred property during the life of the decedent, including the retention of:
(A)
a beneficial interest;
(B)
a power of revocation, absolute or conditional; or
(C)
a power of appointment by will or otherwise.
(2)
Notwithstanding any parol agreement, the written form of the title is controlling for intangible personal property held in joint tenancy.
(e)
(1)
“Subsequent interest” means a vested or contingent remainder, executory or reversionary interest, or other future interest that is created by a decedent and will or may vest in possession after the death of the decedent.
(2)
“Subsequent interest” includes a sole or concurrent subsequent interest.
Md. Code Ann., Tax-Gen. § 7-202 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–202LinkCopy Citation
(a)
Except as provided in § 7–203 of this subtitle, a tax is imposed on the privilege of receiving property that passes from a decedent and has a taxable situs in the State.
(b)
For purposes of this subtitle, the situs of intangible personal property is the domicile of the decedent.
Md. Code Ann., Tax-Gen. § 7-203 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–203LinkCopy Citation
(a)
The inheritance tax does not apply to the receipt of an annuity or other payment under a public or private employees’ pension or benefit plan if the annuity or other payment is not taxable for federal estate tax purposes.
(b)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Child” includes a stepchild or former stepchild.
(iii)
“Parent” includes a stepparent or former stepparent.
(iv)
“Surviving spouse” means a surviving spouse who has not remarried.
(2)
The inheritance tax does not apply to the receipt of property that passes from a decedent to or for the use of:
(i)
a grandparent of the decedent;
(ii)
a parent of the decedent;
(iii)
a spouse of the decedent;
(iv)
a child of the decedent or a lineal descendant of a child of the decedent;
(v)
a spouse of a child of the decedent or a spouse of a lineal descendant of a child of the decedent;
(vi)
a surviving spouse of a deceased child of the decedent or of a deceased lineal descendant of a child of the decedent who was married to the child or lineal descendant of the child at the time of the child’s or lineal descendant’s death;
(vii)
a brother or sister of the decedent; or
(viii)
a corporation, partnership, or limited liability company if all of its stockholders, partners, or members consist of individuals specified in items (i) through (vii) of this paragraph.
(c)
The inheritance tax does not apply to the receipt of the first $500 of property that passes from a decedent under a will for the perpetual upkeep of graves.
(d)
The inheritance tax does not apply to the receipt of the proceeds of a life insurance policy payable to any beneficiary other than the estate of the insured.
(e)
The inheritance tax does not apply to the receipt of property that passes from a decedent to or for the use of an organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code or to which transfers are deductible under § 2055 of the Internal Revenue Code if the organization:
(1)
is incorporated under the laws of this State;
(2)
conducts a substantial part of all its activities in this State or in the District of Columbia; or
(3)
has its principal place of business in a jurisdiction whose law:
(i)
does not impose death taxes on the receipt of property that passes from a decedent to a beneficiary of this State that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code or to which transfers are deductible under § 2055 of the Internal Revenue Code; or
(ii)
contains a reciprocal exemption from death taxes similar to the exemption allowed in this subsection.
(f)
The inheritance tax does not apply to the receipt of property that passes from a decedent to any 1 person if the total value of the property does not exceed $1,000.
(g)
The inheritance tax does not apply to the receipt of property that is distributed from an estate that qualifies under § 5–601 of the Estates and Trusts Article for administration as a small estate.
(h)
The inheritance tax does not apply to the receipt of property that passes from a decedent to the State, a county, or a municipal corporation of the State.
(i)
The inheritance tax does not apply to the receipt of property that is income, including gains and losses, accrued on probate assets after the date of death of the decedent.
(j)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Holocaust victim” means an individual who died or lost property as a result of discriminatory laws, policies, or actions targeted against discrete groups of individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether or not the individual was actually a member of any of those groups, or because the individual assisted or allegedly assisted any of those groups, between January 1, 1929 and December 31, 1945, in the country of Nazi Germany, areas occupied by Nazi Germany, those European countries allied with Nazi Germany, areas occupied by those European countries allied with Nazi Germany, or any other neutral European country or area in Europe under the influence or threat of invasion by Nazi Germany or by any European country allied with or occupied by Nazi Germany.
(iii)
“Nazi Germany” means:
(1)
for the period from 1929 to 1933, the Republic of Germany, commonly referred to as the Weimar Republic; and
(2)
for the period from 1933 through 1945, Deutsche Reich.
(2)
The inheritance tax does not apply to the receipt of property that is:
(i)
tangible or intangible property or compensation for tangible or intangible property that was seized, misappropriated, or lost as a result of the actions or policies of Nazi Germany toward a Holocaust victim; or
(ii)
amounts received by a decedent as reparations or restitution for the loss of liberty or damage to the health of the decedent because the decedent was:
(1)
a Holocaust victim; or
(2)
a spouse or descendant of a Holocaust victim.
(3)
The exclusion under paragraph (2) of this subsection includes interest on the proceeds receivable as insurance under policies issued by European insurance companies prior to and during World War II to a Holocaust victim.
(4)
The exclusion under paragraph (2) of this subsection does not include:
(i)
assets acquired with the assets described in paragraph (2) of this subsection; or
(ii)
assets acquired with the proceeds from the sale of the assets described in paragraph (2) of this subsection.
(5)
The subtraction under paragraph (2)(i) of this subsection shall only apply if the decedent:
(i)
was the first recipient of the assets described in paragraph (2)(i) of this subsection after their recovery; and
(ii)
was:
(1)
a Holocaust victim; or
(2)
a spouse or descendant of a Holocaust victim.
(k)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Domestic partner” means an individual with whom another individual has established a domestic partnership.
(iii)
“Domestic partnership” means a relationship between two individuals that is a domestic partnership:
(1)
under § 6–101(a) of the Health – General Article; or
(2)
registered in accordance with § 2–214 of the Estates and Trusts Article.
(2)
If the domestic partner of a decedent provides the affidavit described in § 6–101(b)(1) of the Health – General Article or any two of the proofs of domestic partnership listed under § 6–101(b)(2) of the Health – General Article, the inheritance tax does not apply to the receipt of an interest in a joint primary residence that:
(i)
at the time of death was held in joint tenancy by the decedent and the domestic partner; and
(ii)
passes from the decedent to or for the use of the domestic partner.
(3)
For a domestic partnership registered in accordance with § 2–214 of the Estates and Trusts Article, the inheritance tax does not apply to the receipt of property that passes from the decedent to or for the use of the domestic partner of the decedent.
(l)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Farming purposes” has the meaning stated in § 2032A(e)(5) of the Internal Revenue Code.
(iii)
“Perpetual conservation easement” means an easement on real property that perpetually restricts the use of the real property to farming purposes.
(2)
The inheritance tax does not apply to the receipt of real property that is subject to a perpetual conservation easement and passes from a decedent to or for the use of a niece or nephew of the decedent.
(3)
(i)
The inheritance tax shall be recaptured as provided in this paragraph if the real property that is excluded under paragraph (2) of this subsection ceases to be used for farming purposes.
(ii)
The amount of the inheritance tax imposed under this paragraph shall be the inheritance tax that would have been payable at the time of the decedent’s death but for the provisions under paragraph (2) of this subsection.
Md. Code Ann., Tax-Gen. § 7-204 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–204LinkCopy Citation
(a)
In this section, “clear value” means fair market value minus expenses.
(b)
The inheritance tax rate is 10% of the clear value of the property that passes from a decedent.
(c)
If a decedent died on or before May 31, 1975, the rate of the inheritance tax is the rate in effect on the date of the decedent’s death.
Md. Code Ann., Tax-Gen. § 7-207 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–207LinkCopy Citation
Except as provided in §§ 7-209 through 7-211 of this subtitle, the value of property that passes from a decedent is, for purposes of the inheritance tax, the appraised value of the property required to be stated in the inventory required to be filed under § 7-225 of this subtitle.
Md. Code Ann., Tax-Gen. § 7-208 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–208LinkCopy Citation
(a)
(1)
If there is a formal administration of an estate, the court with jurisdiction to administer the estate shall determine, for purposes of the inheritance tax, the value of any concurrent absolute interest or less than absolute interest in property that passes from the decedent, that is listed in an account required under § 7-305 of the Estates and Trusts Article, and that is not valued in the manner required in §§ 7-209 through 7-211 of this subtitle.
(2)
If the court approves an account required under § 7-305 of the Estates and Trusts Article, in which a concurrent absolute interest or less than absolute interest is valued:
(i)
approval of the account is deemed to be court determination of the value of the concurrent absolute or less than absolute interest, for purposes of the inheritance tax; and
(ii)
a separate petition to the court or a separate judicial order is not needed to value the concurrent absolute interest or the less than absolute interest.
(b)
If there is no formal administration of the estate, the register in the county where the inventory is filed shall determine, for purposes of the inheritance tax, any concurrent absolute interest or less than absolute interest in property that passes from a decedent.
Md. Code Ann., Tax-Gen. § 7-209 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–209LinkCopy Citation
(a)
Except as otherwise provided by an instrument that creates a joint tenancy or by law, if, before death, a decedent had an absolute interest in property as a joint tenant, the value of the interest in the property that passes from the decedent is determined by dividing the value of the entire property by the number of joint tenants, including the decedent.
(b)
Except as otherwise provided by an instrument that creates a joint tenancy or law, if an absolute interest in property passes from a decedent to 2 or more persons as joint tenants, the value of the interest that passes to each joint tenant is determined by dividing the value of the absolute interest in the property by the number of joint tenants to whom the absolute interest in the property passes.
(c)
(1)
If an absolute interest in property passes from a decedent to 2 or more persons as tenants by the entireties:
(i)
the value of the interest that passes to each tenant is determined by dividing the value of the entire value of the absolute interest in the property by the number of tenants to whom the absolute interest in the property passes; and
(ii)
the tenants by the entireties are jointly and severally liable for the entire inheritance tax.
(2)
When property passes from a decedent to a husband and wife as tenants by the entireties and only 1 spouse is entitled to the exemption under § 7-203(b) of this subtitle, the exemption applies to 50% of the value of the property, and the inheritance tax applies to the other 50%.
(d)
(1)
A sole interest less than absolute shall be valued in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax.
(2)
If the sole interest less than absolute depends on, or is measured by, the life of an individual whose life expectancy is shown to be less than average for the individual’s age because of poor health, the value of the sole interest less than absolute may be adjusted.
(e)
If a less than absolute interest in property passes from the decedent to 2 or more persons concurrently, the value of the interest in the property that passes to each person is determined in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax.
Md. Code Ann., Tax-Gen. § 7-210 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–210LinkCopy Citation
(a)
(1)
If an application to prepay inheritance tax for a subsequent interest in property is filed under § 7-219 of this subtitle, the value of the subsequent interest is determined by subtracting the value of all preceding and concurrent interests from the value of the whole property.
(2)
The total inheritance tax on all interests in the property valued shall equal the inheritance tax that would have been due if an absolute interest in the property passed from the decedent.
(b)
(1)
If a subsequent interest in property ultimately vests in possession in a person other than the person by or for whom an application to prepay the inheritance tax was filed under § 7-219 of this subtitle and if the inheritance tax determined under the prepayment application was paid:
(i)
the subsequent interest shall be revalued when it vests in possession; and
(ii)
the inheritance tax due on the subsequent interest shall be redetermined based on the value of the interest when it vests in possession and on the relationship of the original decedent to the person in whom the interest ultimately vests in possession.
(2)
A deduction from the inheritance tax calculated under paragraph (1)(ii) of this subsection for prepaid inheritance tax on the interest shall be allowed.
(c)
(1)
If an application to prepay the inheritance tax for a subsequent interest is not filed in accordance with § 7-219 of this subtitle or if the inheritance tax determined for the subsequent interest under a prepayment application is not paid when due under § 7-217(d) of this subtitle:
(i)
the whole property shall be valued when the subsequent interest vests in possession;
(ii)
the value of the subsequent interest shall be valued when it vests in possession in the manner stated in subsection (a) of this section; and
(iii)
the inheritance tax due on the subsequent interest shall be determined based on the value of the interest when it vests in possession and on the relationship of the original decedent to the person in whom the interest ultimately vests in possession.
(2)
A deduction for inheritance tax previously paid on any interest in the property may not be allowed.
(d)
(1)
If the inheritance tax applies to 1 or more of the persons by or for whom an application to prepay the inheritance tax is filed under § 7-219 of this subtitle and the exemption under § 7-203(b) of this subtitle applies to others, the inheritance tax applies to the subsequent interest.
(2)
(i)
On application of a party in interest, the inheritance tax due may be apportioned among the persons by or for whom the application to prepay the inheritance tax is filed.
(ii)
After the apportionment, each of those persons is responsible only for the amount of the inheritance tax apportioned to that person.
Md. Code Ann., Tax-Gen. § 7-211 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–211LinkCopy Citation
(a)
The person responsible for paying the inheritance tax may elect to value real property, for purposes of the inheritance tax:
(1)
at its most recent real property assessment plus any inflation allowance if, for the 5 years immediately before the date of the death of the decedent, the real property qualifies under § 8-209 or § 8-211 of the Tax - Property Article as farmland or woodland; or
(2)
based on its actual use on the date of the decedent’s death if the real property qualifies as National Register property by a listing in the National Register of Historic Places, whether as a separate property or as a part of a listed district.
(b)
(1)
To elect a valuation under subsection (a) of this section, the person responsible for paying the inheritance tax shall file with the register a statement that:
(i)
contains a written election of a valuation under subsection (a) of this section, in the form and manner that the Comptroller requires; and
(ii)
describes the qualifying real property in reasonable detail, including its fair market value.
(2)
The statement shall be filed:
(i)
with the administration account that affects the distribution of the qualifying real property; or
(ii)
if the qualifying real property is not subject to formal administration, with the report or inventory required under § 7-224 or § 7-225(c) or (d) of this subtitle.
Md. Code Ann., Tax-Gen. § 7-214 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–214LinkCopy Citation
(a)
The register in the county where the court that administers an estate is located shall determine the inheritance tax that is due on any interest in property included in the estate when the personal representative of the decedent accounts for the distribution of the property.
(b)
If there is no formal administration of an estate, the register in the county where the inventory required under § 7-225(c), (d), or (e) of this subtitle is to be filed shall:
(1)
determine the inheritance tax that is due on any interest in property that passes from a decedent:
(i)
when the inventory is filed; or
(ii)
if the inventory is not filed, when the appraisal is filed by the appraisers appointed under § 7-231 of this subtitle; and
(2)
send a tax bill for the inheritance tax due to each person responsible for paying the tax.
(c)
The register of the county where the inventory required under § 7-225 of this subtitle is filed shall determine the inheritance tax due on a subsequent interest in property that passes from a decedent.
Md. Code Ann., Tax-Gen. § 7-215 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–215LinkCopy Citation
The person responsible under § 7-216 of this subtitle for paying the inheritance tax shall pay it to the register who determines the inheritance tax under § 7-214 of this subtitle.
Md. Code Ann., Tax-Gen. § 7-216 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–216LinkCopy Citation
(a)
(1)
Except as otherwise provided in this section, the inheritance tax on property that passes from a decedent shall be paid, before it is distributed, by the person who distributes the property.
(2)
The person who distributes property that passes from a decedent is liable for the inheritance tax on the property distributed until the tax is paid.
(3)
Unless a decedent specified a source for paying the inheritance tax and there is sufficient money from that source, the court may order sale of property to pay the inheritance tax on the property.
(b)
The inheritance tax on property that passes from a decedent shall be paid by the recipient if:
(1)
the person who distributes the property does not pay the tax as required by subsection (a) of this section; or
(2)
the property passes from the decedent to the recipient without distribution.
(c)
If the property that passes from a decedent is a subsequent interest, the inheritance tax on the property shall be paid:
(1)
by the person by or for whom a prepayment application is made under § 7-219 of this subtitle; or
(2)
if the inheritance tax is not prepaid on the subsequent interest, by the person in whom the property or subsequent interest ultimately vests.
(d)
If property valued or exempt under § 7-211 of this subtitle is disqualified for the special valuation or exemption under § 7-221 of this subtitle, the person who owns the property when the disqualifying event occurs shall pay any additional inheritance tax determined under § 7-221 of this subtitle.
Md. Code Ann., Tax-Gen. § 7-217 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–217LinkCopy Citation
(a)
Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if an estate is administered subject to the jurisdiction of a court, the person responsible for paying the inheritance tax shall pay the tax when the register determines the amount due, at the time that the representative accounts for the distribution of property of the estate.
(b)
Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if an estate is administered under modified administration, the person responsible for paying the inheritance tax shall pay the tax when the personal representative files the final report under modified administration.
(c)
Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if there is no formal administration subject to the jurisdiction of a court for property that passes from a decedent, the person responsible for paying the inheritance tax shall pay the tax when the register determines the amount due.
(d)
Except as provided by subsection (e) of this section, if an interest in property is valued under § 7-209(d) or (e) or § 7-210 of this subtitle, the person responsible for paying the inheritance tax shall pay the tax within 30 days after the determination of the inheritance tax due on the interest.
(e)
If the inheritance tax on a subsequent interest in property is not prepaid, the person responsible for paying the tax shall pay the tax when the interest vests in possession.
(f)
If additional inheritance tax becomes due under § 7-221 of this subtitle, the person responsible for paying the tax shall pay the tax when the disqualifying event occurs.
Md. Code Ann., Tax-Gen. § 7-218 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–218LinkCopy Citation
(a)
In this section, “small business” means a firm that:
(1)
is independently owned and operated;
(2)
is not a subsidiary of another firm;
(3)
is not dominant in its field of operation; and
(4)
in its most recently completed fiscal year, did not employ in its operations more than 25 individuals.
(b)
On application of a person responsible for paying the inheritance tax and subject to § 13-601 of this article, the Comptroller may allow an alternative payment schedule for the inheritance tax, not exceeding a 5-year period, if payment of the tax on the due date would require the sale of a small business or any interest in a small business that passes from a decedent.
(c)
A person may apply for an alternative payment schedule by filing with the Comptroller an application on the form and in the manner that the Comptroller requires.
(d)
The payment schedule may be in the form of:
(1)
a payment deferral; or
(2)
an installment payment plan.
(e)
(1)
For each alternative payment schedule allowed under subsection (b) of this section, the Comptroller shall specify the procedures and guidelines, including:
(i)
conditions of eligibility; and
(ii)
(1)
amount and duration of any payment deferral; or
(2)
amount of and scheduled time for any installment payments.
(2)
If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant.
(f)
For each alternative payment schedule allowed under subsection (b) of this section, the Comptroller shall give the appropriate register notice of:
(1)
the grant;
(2)
the procedures and guidelines specified under subsection (e)(1) of this section; and
(3)
the responsibilities of the register for receipt of payments.
(g)
If an alternative payment schedule is allowed under subsection (b) of this section, the person responsible for paying the inheritance tax shall pay the tax in accordance with the schedule.
(h)
The Comptroller shall adopt procedures to provide notice about the availability of alternative payment schedules under this section.
Md. Code Ann., Tax-Gen. § 7-219 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–219LinkCopy Citation
(a)
Within a reasonable time after the valuation of a less than absolute interest in property that passes from a decedent, an application to prepay the inheritance tax for a subsequent interest in the same property may be filed with the register of the county where the information report was filed under § 7–224 of this subtitle.
(b)
(1)
An application under subsection (a) of this section may be filed by or for a person or class of persons, whether or not then in being, in whom may vest a subsequent interest in the property valued.
(2)
An application under subsection (a) of this section may not be made by or for a person who, under the instrument that created the property interests, has no interest other than the possibility of becoming an appointee by the exercise of a power of appointment.
(3)
A person who only has the interest described in paragraph (2) of this subsection is entitled to receive the benefits of prepayment under § 7–210(b) of this subtitle.
Md. Code Ann., Tax-Gen. § 7-220 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–220LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, if the total inheritance tax determined on all interests in property is paid when due and equals the inheritance tax that would have been due if an absolute interest in the property passed from the decedent, additional inheritance tax is not due because of a subsequent invasion of the corpus by or for any person under the terms of the instrument that created the property interests.
(b)
(1)
If the tax rate applicable to the person invading the corpus exceeds the tax rate already paid on the property, additional inheritance tax shall be due on the property withdrawn.
(2)
The amount of additional inheritance tax due under paragraph (1) of this subsection is the difference between the inheritance tax that was paid on the property and the inheritance tax that would have been due on the property if determined at the higher rate.
Md. Code Ann., Tax-Gen. § 7-221 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–221LinkCopy Citation
(a)
(1)
If within 15 years after the date of a decedent’s death, property valued under § 7-211 of this subtitle is disqualified for the special valuation, additional inheritance tax is due in the amount of the difference between the inheritance tax paid and the inheritance tax that would have been paid if the election under § 7-211 of this subtitle had not been made.
(2)
Property is disqualified for the special valuation under § 7-211 of this subtitle, if:
(i)
the property qualified for valuation as National Register property and is removed from the National Register of Historic Places; or
(ii)
the property qualified for valuation as farmland or woodland and ceases to qualify for farmland or woodland assessment under § 8-209 or § 8-211 of the Tax - Property Article.
(3)
The Department or the Maryland Historical Trust shall report to the Comptroller and the register any event that causes property to be disqualified for special valuation.
(b)
(1)
The property owner may submit to the appropriate register an application for a certificate that a disqualifying event has not occurred before a date that is stated in the certificate.
(2)
The application shall:
(i)
be made on the form and in the manner that the Comptroller requires; and
(ii)
include appropriate certifications of the property owner.
(c)
(1)
After receiving the application, the register shall inquire about the property with:
(i)
the Department, for farmland or woodland property; or
(ii)
the Maryland Historical Trust, for property listed on the National Register of Historic Places.
(2)
The Department or Maryland Historical Trust shall report to the register about the property.
(d)
If, based on the certifications of the property owner and the report under subsection (c)(2) of this section, the register determines that a disqualifying event has not occurred, the register shall issue a certificate of nondisqualification, on the form and in the manner that the Comptroller determines.
(e)
The date stated in a certificate of nondisqualification shall be:
(1)
on or after the application date; and
(2)
as close as possible to the date on which the certificate is issued.
(f)
A grantee of the property and the successors or assigns of the grantee may rely conclusively on the certificate issued under subsection (d) of this section.
Md. Code Ann., Tax-Gen. § 7-224 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–224LinkCopy Citation
(a)
Within 3 months after the grant of letters of administration, a personal representative shall prepare and file with the register who issued the letters a written report that:
(1)
is made under oath;
(2)
lists the property as defined in § 7-201(d)(1)(ii) and (iii) of this subtitle that passes from a decedent; and
(3)
if appropriate, states that the personal representative does not have knowledge of any property or transfer of property required by item (2) of this subsection to be reported.
(b)
If, after filing the report required by subsection (a) of this section, the personal representative discovers an omission from the report, the personal representative immediately shall report the omitted property to the register.
Md. Code Ann., Tax-Gen. § 7-225 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–225LinkCopy Citation
(a)
A person required to file an inventory shall have the property appraised in the manner provided in Title 7, Subtitle 2 of the Estates and Trusts Article.
(b)
Each personal representative shall file the inventory required by § 7-201 of the Estates and Trusts Article with the register within 3 months after appointment.
(c)
If there is no formal administration of an estate, each person other than a personal representative who distributes property that passes from the decedent shall file the inventory required by § 7-201 of the Estates and Trusts Article, within 3 months after the death of the decedent and before distributing the property:
(1)
for personal property, with the register in the county where the decedent resided at the time of death; and
(2)
for real property, with the register in the county where the real property is located.
(d)
If there is no formal administration of an estate, each person who receives property that passes from a decedent without distribution shall file the inventory required by § 7-201 of the Estates and Trusts Article, within 3 months after the death of the decedent:
(1)
for personal property, with the register in the county where the decedent resided at the time of death; and
(2)
for real property, with the register in the county where the real property is located.
(e)
A foreign personal representative who administers an estate with property that is located in this State and subject to the inheritance tax shall file with the register of the county where the foreign personal representative believes the largest part, in value, of the property is located:
(1)
a copy of the appointment as personal representative;
(2)
a copy of the will of the decedent, if any, authenticated in accordance with 28 U.S.C. § 1738; and
(3)
an inventory of all of the property that the estate owns in this State that:
(i)
is made under oath;
(ii)
describes each item in reasonable detail; and
(iii)
indicates the fair market value of each item and the basis on which the value is determined.
Md. Code Ann., Tax-Gen. § 7-228 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–228LinkCopy Citation
(a)
For an estate of a nonresident decedent, if the death taxes and interest and penalties on the death taxes due to a domiciliary state or a political subdivision of a domiciliary state are not paid or secured, the unit responsible for collecting the death taxes in the domiciliary state or subdivision may petition and receive from the court in this State that granted letters of administration for the estate an order for:
(1)
an accounting of the property in this State; and
(2)
payment of the death taxes and interest and penalties on the death taxes.
(b)
The personal representative of an estate of a nonresident decedent is not entitled to approval for a final accounting or discharge until the personal representative files with the court that granted letters of administration for the estate:
(1)
proof that all death taxes and the interest and penalties on the death taxes have been paid to or secured for the domiciliary taxing authorities; or
(2)
the consent of the domiciliary taxing authorities to the final accounting or discharge.
(c)
This section and § 7-231(e) of this subtitle shall be construed liberally to ensure that the domiciliary state of a nonresident decedent receives the death taxes and the interest and penalty on the death taxes due to that state from the estate of the decedent.
Md. Code Ann., Tax-Gen. § 7-231 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–231LinkCopy Citation
(a)
In addition to the duties set forth elsewhere in this subtitle and the Estates and Trusts Article, the register has the duties set forth in this section.
(b)
If an inventory is not filed as required by § 7-225(c), (d), or (e) of this subtitle, the register of the county where the inventory should have been filed shall apply to the appropriate court for the appointment of at least 2 appraisers to value the property for which an inventory should have been filed and that comes to the attention of the register.
(c)
(1)
If an election is made for the special valuation of property under § 7-211 of this subtitle, the register shall:
(i)
give the Department notice of the election; and
(ii)
cause a notice of inchoate lien to be recorded in the land records of the county where the land is located.
(2)
The notice of inchoate lien shall include:
(i)
the date of death of the decedent; and
(ii)
on the basis of the fair market value of the property, the difference between the inheritance tax on the value elected under § 7-211 of this subtitle and the inheritance tax that would otherwise be payable.
(3)
The notice shall be indexed:
(i)
in the name of the register as grantee and in the name of the distributee of the qualifying property as the surviving joint tenant or in the name of the person responsible for paying the inheritance tax as grantor; and
(ii)
in the block records, if maintained.
(4)
When the additional inheritance tax that is due is paid, the register shall record a release of the lien in the land records of the county where the land is located.
(d)
(1)
The register shall give a receipt to each person who pays inheritance tax.
(2)
The receipt discharges the person from liability for the amount of the inheritance tax that is paid.
(e)
For an estate of a nonresident decedent, the register shall cooperate with the domiciliary taxing authorities and give them any information requested about the estate.
Md. Code Ann., Tax-Gen. § 7-232 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–232LinkCopy Citation
Each register shall certify to the Comptroller the amount of inheritance tax paid for each decedent for whom a Maryland estate tax return is filed with the register or for whom the register receives a request for the certification from:
(1)
the Comptroller;
(2)
the personal representative of the decedent’s estate; or
(3)
any person required to file a Maryland estate tax return with regard to property passing from the decedent.
Md. Code Ann., Tax-Gen. § 7-233 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–233LinkCopy Citation
(a)
Each month, each register shall pay into the State Treasury an amount equal to the inheritance tax collected in the preceding month, less the commission allowed in subsection (b) of this section.
(b)
A register is allowed a 25% commission on the inheritance tax collected.
(c)
Each month, each register shall file with the Comptroller an inheritance tax collection report on the form that the Comptroller requires.
(d)
If an inheritance tax claim for refund under § 13-901 of this article is allowed, the register making the determination shall:
(1)
certify the amount to the Comptroller for payment; and
(2)
if authorized by the Comptroller under § 2-702 of this article, pay the refund from money that the register has collected under this subtitle but not paid into the State Treasury.
Md. Code Ann., Tax-Gen. § 7-234 (2026)
Title 7. Death Taxes
Subtitle 2. Inheritance Tax
§ 7–234LinkCopy Citation
(a)
If a register fails to account for and remit money as required under § 7-233 of this subtitle, then 30 days after the failure, the Comptroller shall notify the Attorney General to put the register’s bond in suit for the use of the State.
(b)
In a suit under this section, the State shall recover:
(1)
the amount that seems to be due; and
(2)
interest, at the rate of 10% a year, from the date that the amount was payable.
(c)
(1)
A recovery under subsection (b) of this section is evidence of misbehavior.
(2)
If a register is convicted of misbehavior for failure to account for and remit money as required under § 7-233 of this subtitle, the register shall be removed from office.
(d)
If a register fails to account for or remit money as required under § 7-233 of this subtitle, the register shall forfeit the commission to which the register otherwise would be entitled.