# Tax - General (GTG)

## Title 7. Death Taxes

### Subtitle 4. Maryland Generation-Skipping Transfer Tax

#### Section 7-401

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

(b) "Federal credit" means:

  (1) the maximum allowable credit for State taxes under Sec. 2604 of the Internal Revenue Code against the federal generation-skipping transfer tax; less

  (2) the amount that bears the same ratio to the maximum allowable credit as the value of the generation-skipping transfer taxable by all other states bears to the total value of the generation-skipping transfer.

(c) "Federal generation-skipping transfer tax" means the tax imposed by Sec. 2601 of the Internal Revenue Code.

(d) "Generation-skipping transfer" means a transfer subject to the federal generation-skipping transfer tax.

(e) "Original transferor" means an individual who makes a transfer of property that results in the imposition of the federal generation-skipping transfer tax.

#### Section 7-402

(a) Except as provided in subsection (b) of this section, a tax is imposed on a generation-skipping transfer that occurs at the same time and as a result of the death of an individual, if:

  (1) the original transferor was a resident of this State on the date of the original transfer; or

  (2)

    (i) the original transferor was not a resident of this State on the date of the original transfer; and

    (ii) the generation-skipping transfer includes property having a situs in this State.

(b) The Maryland generation-skipping transfer tax does not apply to a direct skip, as defined under Sec. 2612 of the Internal Revenue Code.

#### Section 7-403

The Maryland generation-skipping transfer tax is the amount of the federal credit.

#### Section 7-404

The value of property included in a generation-skipping transfer is the same value as determined under Chapter 13 of the Internal Revenue Code.

#### Section 7-405

(a) The person required to file a federal generation-skipping transfer tax return on which a federal credit is allowable shall complete and file a Maryland generation-skipping transfer tax return with the Comptroller on or before the last day for filing the federal return.

(b) If, after a person files a Maryland generation-skipping transfer tax return, the federal generation-skipping transfer tax is increased, the person shall complete and file an amended return with the Comptroller when the additional federal tax is paid.

#### Section 7-406

The person required to pay the federal generation-skipping transfer tax shall pay the Maryland generation-skipping transfer tax to the Comptroller on or before the last day for filing a Maryland generation-skipping transfer tax return.

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