# Tax - General (GTG)

## Title 7. Death Taxes

### Subtitle 3. Maryland Estate Tax

#### Section 7-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Estate" means the federal gross estate of a decedent, as determined by Subtitle B of the Internal Revenue Code, as increased by any property not otherwise included in the federal gross estate that is deemed to be included pursuant to Sec. 7-309(b)(6) of this subtitle.

(c) "Federal estate tax" means the tax imposed by Chapter 11 of the Internal Revenue Code.

(d) "Maryland estate" means the part of an estate that this State has the power to subject to the Maryland estate tax.

#### Section 7-302

Except as provided in Sec. 7-303 of this subtitle, a tax is imposed on the transfer of the Maryland estate of each decedent who, at the time of death, was:

(1) a resident of this State; or

(2) a nonresident of this State whose estate includes any interest in:

  (i) real property permanently located in this State; or

  (ii) tangible personal property that has a taxable situs in this State.

#### Section 7-303

(a) Except as provided in subsection (b) of this section, the Maryland estate tax does not apply to the transfer of personal property in an estate of a nonresident decedent, if, at the time of death, the decedent is a resident of a state or foreign country whose law, when the personal property is transferred:

  (1) does not impose death taxes on the transfer of similar personal property of a resident of this State; or

  (2) contains a reciprocal exemption from death taxes similar to the exemption allowed under this subsection.

(b) The exemption under subsection (a) of this section does not include a transfer of tangible personal property that has a taxable situs in this State.

#### Section 7-304

(a) Subject to Sec. 7-309 of this subtitle, in this section, "federal credit" means the maximum credit for death taxes paid to any state that is allowable under Sec. 2011 of the Internal Revenue Code against the federal estate tax of a decedent as reduced by the proportion that the amount of the estate not included in the Maryland estate bears to the amount of the entire estate of the decedent.

(b)

  (1) Except as otherwise provided in this subsection, the Maryland estate tax is the amount, if any, by which the federal credit exceeds the total of death taxes other than the Maryland estate tax that:

    (i) are imposed by a state on property included in the Maryland estate;

    (ii) are allowable in computing the federal credit; and

    (iii) except as provided in Sec. 13-906 of this article, have actually been paid out of the Maryland estate and received by the appropriate unit of this State.

  (2) Subject to Sec. 7-309 of this subtitle, the Maryland estate tax may not exceed the amount whose timely payment in accordance with federal law would reduce the amount of the federal estate tax payable out of the Maryland estate had this subtitle not been enacted.

(c) The Maryland estate tax is not affected by a failure to take or preserve the federal credit.

#### Section 7-305

(a) If a federal estate tax return is required to be filed, the person responsible for filing the federal estate tax return shall complete, under oath, and file a Maryland estate tax return with the Comptroller 9 months after the date of the death of a decedent.

(b) If a federal estate tax return is not required to be filed but a federal estate tax return would be required to be filed if the applicable exclusion amount under Sec. 2010(c) of the Internal Revenue Code were no greater than the applicable exclusion amount specified under Sec. 7-309(b) of this subtitle, the person who would be responsible for filing the federal estate tax return shall complete, under oath, and file a Maryland estate tax return with the Comptroller 9 months after the date of the death of the decedent.

(c)

  (1) If a person files a Maryland estate tax return solely for the purpose of making the election under Sec. 7-309(b) of this subtitle to allow a surviving spouse to take into account the deceased spousal unused exclusion amount, the person shall file the Maryland estate tax return within the time period prescribed for making an election on a federal estate tax return to allow a surviving spouse to take into account the deceased spousal unused exclusion amount.

  (2) The Comptroller shall adopt regulations necessary to ensure that the time period for making the election under Sec. 7-309(b) of this subtitle on a Maryland estate tax return is identical to that for a similarly situated federal estate tax return.

(d)

  (1) After a person files a Maryland estate tax return, the person shall file an amended Maryland estate tax return with the Comptroller if the Maryland estate tax liability is increased because of:

    (i) a change in the federal gross estate, federal taxable estate, federal estate tax, or other change as determined under the Internal Revenue Code;

    (ii) after-discovered property;

    (iii) a correction to the value of previously reported property;

    (iv) a correction to the amount of previously claimed deductions; or

    (v) any other correction to a previously filed return.

  (2)

    (i) The amended return shall be filed within 90 days after the later to occur of the date of the event that caused the increase in the Maryland estate tax liability or the date on which the person required to file an amended Maryland estate tax return learned or reasonably should have learned of the increase in the Maryland estate tax liability.

    (ii) On request, each register shall certify to the Comptroller the amount of inheritance tax paid for each decedent for whom an amended Maryland estate tax return is filed with the Comptroller.

#### Section 7-305.1

(a) This section does not apply to an amended estate tax return.

(b)

  (1) Subject to Sec. 13-601 of this article, the Comptroller may extend the time to file an estate tax return up to 6 months, or if the person required to file the estate tax return is out of the United States, up to 1 year.

  (2) An estate that is afforded a later due date for filing the federal estate tax return under the Internal Revenue Code shall be afforded the same later due date for filing the Maryland estate tax return.

  (3) A request for an extension of time to file the Maryland estate tax return shall be filed on a form prescribed by the Comptroller.

#### Section 7-306

(a) Except as provided in Sec. 7-307 of this subtitle, the person responsible for filing the Maryland estate tax return under Sec. 7-305 of this subtitle shall pay the Maryland estate tax to the Comptroller no later than 9 months after the date of the death of the decedent.

(b) An extension of time to file the Maryland estate tax return granted by the Comptroller under Sec. 7-305.1 of this subtitle does not extend the time for remitting the Maryland estate tax.

(c) If an amended Maryland estate tax return is filed pursuant to Sec. 7-305(d) of this subtitle, the person responsible for filing the amended Maryland estate tax return shall pay the additional Maryland estate tax developed on the amended Maryland estate tax return to the Comptroller when the amended Maryland estate tax return is filed with the Comptroller.

#### Section 7-307

(a) On application of the person responsible for paying the Maryland estate tax and subject to Sec. 13-601 of this article, the Comptroller may allow an alternative payment schedule for the Maryland estate tax, notwithstanding any payment extension under Sec. 6166 of the Internal Revenue Code.

(b) The payment schedule may be in the form of:

  (1) a payment deferral; or

  (2) an installment payment plan.

(c)

  (1) For each alternative payment schedule allowed under subsection (a) 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.

(d)

  (1) If an alternative payment schedule is allowed under subsection (a) of this section, the person responsible for filing the Maryland estate tax return under Sec. 7-305 of this subtitle shall pay the tax in accordance with the schedule.

  (2) If the Maryland estate tax is paid in accordance with an alternative payment schedule allowed under subsection (a) of this section, a penalty for the late payment of the tax may not be assessed under Sec. 13-701 of this article.

#### Section 7-308

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Fiduciary" means a personal representative or trustee.

  (3) "Person" includes any government, political subdivision, or governmental unit.

  (4) "Person interested in the estate" means any person who is entitled to receive or has received, from a decedent while alive or by reason of the death of a decedent, any property or interest in property included in the taxable estate of the decedent.

  (5) "Tax" means the federal estate tax and the Maryland estate tax and interest and penalties imposed in addition to the taxes.

(b)

  (1) The tax shall be apportioned among all persons interested in the estate. Except as otherwise provided in this subsection, the apportionment shall be made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax shall be used for that purpose.

  (2)

    (i) If any part of the estate consists of property the value of which is deemed includible in the estate under Sec. 7-309(b)(6) of this subtitle, the amount of Maryland estate tax apportioned to the person or persons receiving that property shall be the amount by which the total tax under this subtitle that has been paid exceeds the total tax under this subtitle that would have been payable if the value of that property had not been deemed includible in the estate.

    (ii) Any tax apportioned under this paragraph shall be apportioned among all persons receiving that property in the proportion that the value of the property received by each person bears to the total value of all such property.

(c)

  (1) The court shall determine the apportionment of the tax. If there are no administration proceedings, the court of the county where the decedent was domiciled at death shall determine the apportionment of the tax on the application of the person required to pay the tax.

  (2) If the court finds that it is inequitable to apportion interest and penalties as provided in this section because of special circumstances, the court may direct apportionment in the manner that it finds equitable.

  (3) The expenses reasonably incurred by any fiduciary and by any other person interested in the estate in connection with the determination of the amount and apportionment of the tax shall be apportioned as provided in subsection (b) of this section and charged and collected as a part of the tax apportioned. If the court finds that it is inequitable to apportion the expenses as provided in subsection (b) of this section, the court may direct an equitable apportionment.

  (4) If the court finds that the assessment of penalties and interest assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest.

  (5) In any suit or judicial proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this section, the determination of the court is prima facie correct.

(d)

  (1) The fiduciary or other person required to pay the tax may withhold, from any property of the decedent that is in the possession of the person and is distributable to any person interested in the estate, the amount of tax attributable to that person's interest. If the property in the possession of the fiduciary or other person required to pay the tax and distributable to any person interested in the estate is insufficient to satisfy the proportionate amount of the tax determined to be due from the person, the fiduciary or other person required to pay the tax may recover the deficiency from the person interested in the estate. If the property is not in the possession of the fiduciary or other person required to pay the tax, the person may recover from any person interested in the estate the amount of the tax apportioned to that person in accordance with this section.

  (2) If property held by the fiduciary or other person required to pay the tax is distributed before the final apportionment of the tax, the person may require the distributee to provide a bond or other security for the apportionment liability in the form and amount required by the fiduciary or other person, with the approval of the court.

  (3) If the fiduciary or other person required to pay the tax transfers any property included in the estate to another person, other than a bona fide purchaser for value, the transferee is jointly and severally liable with the transferor for the amount of tax apportioned to the transferor under this section, less the value, at the time of the transfer, of any consideration given by the transferee for the property.

(e)

  (1) In making an apportionment, allowances shall be made for any exemptions granted and for any deductions and credits allowed by the law imposing the tax.

  (2) Any exemption or reduction allowed by reason of the relationship of any person to the decedent or by reason of the purposes of the gift inures to the benefit of the person bearing that relationship or receiving the gift. If an interest is subject to a prior present interest that is not allowable as a deduction, the tax apportionable against the present interest shall be paid from principal.

  (3) Any credit for property previously taxed, any credit for state death taxes, and any credit for gift taxes or death taxes of a foreign country inure to the proportionate benefit of all persons liable to apportionment.

  (4) To the extent that property passing to or in trust for a surviving spouse or any charitable, public or similar gift or bequest is not an allowable deduction for purposes of the tax solely by reason of an inheritance tax or other death taxes imposed on and deductible from the property, the property is not included in the computation for which this section provides and, to that extent, an apportionment may not be made against the property. This paragraph does not apply if the result deprives the estate of a deduction otherwise allowable under Sec. 2053 (d) of the Internal Revenue Code, relating to deduction for state death taxes on transfers for public, charitable or religious uses.

(f) An interest in income, an estate for years, an estate for life, or any other temporary interest in any property or money is not subject to apportionment between the temporary interest and the remainder. The tax on the temporary interest and the tax, if any, on the remainder is chargeable against the corpus of the property or money subject to the temporary interest and remainder.

(g) The fiduciary or other person required to pay the tax need not institute any suit or proceeding to recover from any person interested in the estate the amount of the tax apportioned to that person until the expiration of the 6 months next following the payment of any tax. If the fiduciary or other person required to pay the tax cannot collect from any person interested in the estate the amount of tax apportioned to the person, the amount not recoverable shall be equitably apportioned among the other persons interested in the estate who are subject to apportionment.

(h) Subject to this subsection, a fiduciary acting in another state or a person required to pay the tax who is resident in another state may institute an action in a court of this State and may recover a proportionate amount of the federal estate tax or an estate tax payable to another state or of a death duty due by an estate to another state from a person interested in the estate who either is resident in this State or owns property in this State subject to attachment or execution. For the purpose of the action, the determination of apportionment by the court having jurisdiction of the administration of the estate in the other state is prima facie correct. This subsection applies only if the state in which the determination of apportionment was made affords a substantially similar remedy.

(i) The provisions of this section that are uniform with statutes enacted in other states shall be construed to make uniform the laws of those states that enact the uniform provisions.

(j) This section may be cited as the "Maryland Uniform Estate Tax Apportionment Act".

(k) Except as otherwise provided in the will or other controlling instrument, this section applies to the apportionment of, and contribution to, the federal and Maryland estate taxes.

#### Section 7-309

(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit under Sec. 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before the passage of the Act of Congress shall apply with respect to a decedent who dies after the effective date of the Act of Congress so as to continue the Maryland estate tax in force without reduction in the same manner as if the federal credit had not been repealed or reduced.

(b)

  (1) Except as provided in paragraphs (2) through (9) of this subsection and subsection (c) of this section, after the effective date of an Act of Congress described in subsection (a) of this section, the Maryland estate tax shall be determined using:

    (i) the federal credit allowable by Sec. 2011 of the Internal Revenue Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of Congress; and

    (ii) other provisions of federal estate tax law as in effect on the date of the decedent's death.

  (2) Except as provided in paragraphs (3) through (9) of this subsection and subsection (c) of this section, if the federal estate tax is not in effect on the date of the decedent's death, the Maryland estate tax shall be determined using:

    (i) the federal credit allowable by Sec. 2011 of the Internal Revenue Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of Congress; and

    (ii) other provisions of federal estate tax law as in effect on the date immediately preceding the effective date of the repeal of the federal estate tax.

  (3)

    (i) Notwithstanding any increase in the unified credit allowed against the federal estate tax for decedents dying after 2003, the unified credit used for determining the Maryland estate tax for a decedent may not exceed the applicable credit amount corresponding to an applicable exclusion amount, within the meaning of Sec. 2010(c) of the Internal Revenue Code, of:

      (1) $1,000,000 for a decedent dying before January 1, 2015;

      (2) $1,500,000 for a decedent dying on or after January 1, 2015, but before January 1, 2016;

      (3) $2,000,000 for a decedent dying on or after January 1, 2016, but before January 1, 2017;

      (4) $3,000,000 for a decedent dying on or after January 1, 2017, but before January 1, 2018;

      (5) $4,000,000 for a decedent dying on or after January 1, 2018, but before January 1, 2019; and

      (6) $5,000,000 for a decedent dying on or after January 1, 2019, plus any deceased spousal unused exclusion amount calculated in accordance with paragraph (9) of this subsection.

    (ii) The Maryland estate tax shall be determined without regard to any deduction for State death taxes allowed under Sec. 2058 of the Internal Revenue Code.

    (iii) Unless the federal credit allowable by Sec. 2011 of the Internal Revenue Code is in effect on the date of the decedent's death, the federal credit used to determine the Maryland estate tax may not exceed 16% of the amount by which the decedent's taxable estate, as defined in Sec. 2051 of the Internal Revenue Code, exceeds:

      (1) $1,000,000 for a decedent dying before January 1, 2015;

      (2) $1,500,000 for a decedent dying on or after January 1, 2015, but before January 1, 2016;

      (3) $2,000,000 for a decedent dying on or after January 1, 2016, but before January 1, 2017;

      (4) $3,000,000 for a decedent dying on or after January 1, 2017, but before January 1, 2018;

      (5) $4,000,000 for a decedent dying on or after January 1, 2018, but before January 1, 2019; and

      (6) $5,000,000 for a decedent dying on or after January 1, 2019, plus any deceased spousal unused exclusion amount calculated in accordance with paragraph (9) of this subsection.

  (4)

    (i) With regard to an election to value property as provided in Sec. 2032 of the Internal Revenue Code, if a federal estate tax return is not required to be filed:

      (1) an irrevocable election made on a timely filed Maryland estate tax return shall be deemed to be an election as required by Sec. 2032(d) of the Internal Revenue Code;

      (2) the provisions of Sec. 2032(c) of the Internal Revenue Code do not apply; and

      (3) an election may not be made under item 1 of this subparagraph unless that election will decrease:

      (A) the value of the gross estate; and

      (B) the Maryland estate tax due with regard to the transfer of a decedent's Maryland estate.

    (ii) An election to value property as provided in Sec. 2032 of the Internal Revenue Code for Maryland estate tax purposes must be the same as the election made for federal estate tax purposes.

  (5)

    (i) With regard to an election to treat property as marital deduction qualified terminable interest property in calculating the Maryland estate tax, an irrevocable election made on a timely filed Maryland estate tax return shall be deemed to be an election as required by Sec. 2056(b)(7)(B)(i), (iii), and (v) of the Internal Revenue Code.

    (ii) An election under this paragraph made on a timely filed Maryland estate tax return shall be recognized for purposes of calculating the Maryland estate tax even if an inconsistent election is made for the same decedent for federal estate tax purposes.

  (6)

    (i) For purposes of calculating Maryland estate tax, a decedent shall be deemed to have had a qualifying income interest for life under Sec. 2044(a) of the Internal Revenue Code with regard to any property for which a marital deduction qualified terminable interest property election was made for the decedent's predeceased spouse on a timely filed Maryland estate tax return under paragraph (5) of this subsection.

    (ii) For the purpose of apportioning Maryland estate tax under Sec. 7-308 of this subtitle, any property as to which a decedent is deemed to have had a qualifying income interest for life under subparagraph (i) of this paragraph shall be deemed to be included in both the estate and the taxable estate of the decedent.

  (7) For purposes of calculating Maryland estate tax, amounts allowable under Sec. 2053 or Sec. 2054 of the Internal Revenue Code as a deduction in computing the taxable estate of a decedent may not be allowed as a deduction or as an offset against the sales price of property in determining gain or loss if the amount has been allowed as a deduction in computing the federal taxable income of the estate or of any other person.

  (8) Notwithstanding any contrary definition of "marriage" and "spouse" under any applicable provision of federal law, for purposes of calculating Maryland estate tax under this subsection, the surviving "spouse" of a decedent shall include any individual to whom, at the time of the decedent's death, the decedent was lawfully married as determined under the laws of the State.

  (9)

    (i) In this paragraph, "deceased spousal unused exclusion amount" means the applicable exclusion amount in effect at the time of the death of the last predeceased spouse of the decedent under paragraph (3) of this subsection reduced by the taxable estate of the last predeceased spouse:

      (1) as reported on a Maryland estate tax return filed with the Comptroller; or

      (2) as reported on a federal estate tax return, if:

      (A) the last predeceased spouse was not a Maryland resident and no property with a Maryland estate tax situs was includible in the gross estate of the last predeceased spouse; or

      (B) the last predeceased spouse died before January 1, 2019, and no Maryland estate tax return was required to be filed with respect to the predeceased spouse's estate.

    (ii) The deceased spousal unused exclusion amount may not be taken into account under paragraph (3) of this subsection unless:

      (1) if the last predeceased spouse died on or after January 1, 2019, a Maryland estate tax return is timely filed for the last predeceased spouse, on which the deceased spousal unused exclusion amount is calculated and an irrevocable election is made that the deceased spousal unused exclusion amount may be taken into account; or

      (2) if the last predeceased spouse died before January 1, 2019, or was not a Maryland resident and no property with a Maryland estate tax situs was includible in the gross estate of the last predeceased spouse, an election was made under Sec. 2010(c) of the Internal Revenue Code on the federal estate tax return of the last predeceased spouse.

    (iii)

      (1) Notwithstanding any other provision of this article, the Comptroller may examine a Maryland estate tax return of a predeceased spouse after the time for assessing a tax under this title has expired under Sec. 13-1101 of this article solely for the purposes of determining the validity of the deceased spousal unused exclusion election and the amount to be taken into account under paragraph (3) of this subsection.

      (2) This subparagraph may not be construed to authorize the assessment of any additional tax with respect to the predeceased spouse's Maryland estate tax return if the period of limitation under Sec. 13-1101 of this article has expired.

(c)

  (1)

    (i) In this subsection the following words have the meanings indicated.

    (ii) "Farming purposes" has the meaning stated in Sec. 2032A(e)(5) of the Internal Revenue Code.

    (iii) "Qualified agricultural property" means real or personal property that is used primarily for farming purposes.

    (iv) "Qualified recipient" means an individual who enters into an agreement to use qualified agricultural property for farming purposes after the decedent's death.

  (2) The Maryland estate tax shall be determined by excluding from the value of the gross estate up to $5,000,000 of the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient.

  (3) If the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient exceeds $5,000,000, the Maryland estate tax imposed on the Maryland estate of the decedent may not exceed the sum of:

    (i) 16% of the amount by which the decedent's taxable estate, excluding the value of all qualified agricultural property that passes from the decedent to or for the use of a qualified recipient, exceeds the applicable exclusion amount specified under subsection (b) of this section; and

    (ii) 5% of the amount by which the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient exceeds $5,000,000.

  (4)

    (i) The Maryland estate tax shall be recaptured as provided in this paragraph if, within 10 years after the decedent's death, the qualified agricultural property ceases to be used for farming purposes.

    (ii) The amount of the estate tax imposed under this paragraph shall be the additional Maryland estate tax that would have been payable at the time of the decedent's death but for the provisions under paragraphs (2) and (3) of this subsection.

  (5) The Comptroller shall adopt regulations to implement this subsection.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)