Florida has no inheritance tax
Florida does not charge an inheritance tax on money or property you receive from someone's estate. When a relative or friend dies and leaves you assets in their will, you owe nothing to the state of Florida based on that inheritance alone.
This is different from federal estate tax, which is a separate tax the IRS may charge on very large estates. Florida's lack of a state inheritance tax is one reason many people move to Florida in retirement — the state also has no income tax on wages, pensions, or investment gains.
Key Takeaways
- Florida charges no state inheritance tax on money or property you receive from an estate, regardless of the amount.
- Federal estate tax may still explore to very large estates, but that is an IRS tax, not a Florida tax.
- Some states do charge inheritance tax; Florida is one of the states that does not.
- You may owe income tax on certain types of inherited assets that generate ongoing income, such as rental property or investment accounts.
How inheritance tax differs from income tax on inherited assets
An inheritance tax is a one-time tax on the act of receiving property. Florida does not have one. However, you may owe federal income tax on money an inherited asset produces after you receive it.
For example, if you inherit a rental house, you owe no tax on the house itself. But you will owe federal income tax on the rent the house generates each year. If you inherit a brokerage account with stocks, you owe no tax on the stocks themselves, but you will owe tax on dividends and capital gains when you sell.
The key difference: Florida does not tax the transfer of the asset to you. The IRS may tax the income that asset produces later.
Which states do charge inheritance tax
Twelve states currently charge an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania, and six others. The tax rate and rules vary by state and by your relationship to the person who died.
In states with inheritance tax, spouses and children often pay a lower rate or nothing at all, while more distant relatives or unrelated people may pay a percentage of what they receive. If you move to Florida from one of these states, you will no longer owe that state's inheritance tax on future inheritances, though you may still owe it on estates that were already being settled when you moved.
Federal estate tax and when it applies
The federal government charges estate tax on very large estates, but the threshold is high. For deaths in 2024, federal estate tax applies only to estates larger than approximately $13.61 million. Most people's estates fall well below this amount and owe no federal estate tax.
If an estate is large enough to owe federal tax, the executor (the person managing the estate) pays it from the estate's assets before distributing money to heirs. You as an heir do not pay federal estate tax directly — the estate does. This is separate from any inheritance tax a state might charge.
The federal threshold changes each year and is set to drop significantly in 2026 unless Congress acts. If you are managing a very large estate, a tax professional can tell you whether federal estate tax will explore.
What you may owe tax on after inheriting
While Florida does not tax the inheritance itself, you may owe federal income tax on certain inherited assets that produce income. The type of asset determines what you owe and when.
Inherited retirement accounts such as IRAs or 401(k)s have special rules. You must withdraw money from them within a set timeframe, and those withdrawals are taxed as income. Inherited savings accounts and money market accounts generate interest, which is taxable income to you. Inherited real estate that you rent out generates rental income, which is taxable. Inherited stocks that pay dividends generate taxable dividend income.
Assets that straightforward sit and do not produce income — such as a house you live in, a car, or jewelry — generally do not create a tax bill for you. However, if you later sell an inherited asset for more than its value on the date of death, you may owe capital gains tax on the profit.
How to find out what you owe on an inherited asset
The executor of the estate should provide you with a document showing the value of each asset on the date of death. This "stepped-up basis" is important because it affects how much capital gains tax you owe if you sell the asset later.
For ongoing income from inherited assets, keep records of what you receive each year. Banks and investment firms will send you tax forms (such as 1099 forms) showing interest, dividends, or other income. Report this on your federal tax return. You do not file anything with Florida because the state has no income tax.
If you are unsure whether a specific inherited asset will create a tax bill, a tax professional or the executor can walk you through it. The rules differ depending on the type of asset and how long you hold it.
Frequently Asked Questions
Do I owe Florida tax if I inherit money from someone who lived in another state?
No. Florida has no inheritance tax regardless of where the person who died lived or where the estate is located. However, if that other state has an inheritance tax, the estate may owe tax to that state before your share is distributed to you.
What if I inherit a house in Florida — do I owe property tax on it?
You do not owe tax on inheriting the house itself. However, once you own it, you owe annual property tax to your county, just as any homeowner does. This is not an inheritance tax — it is the ongoing property tax all Florida property owners pay.
If I move to Florida after inheriting money in another state, do I owe that state's inheritance tax?
That depends on when the inheritance was processed. If the estate was already settled and you received your share before moving to Florida, you likely already owed tax to that state. If the estate is still being settled after you move, contact the executor or a tax professional in that state to understand the timing and rules.
Do I have to report inherited money on my Florida tax return?
Florida has no state income tax, so there is no Florida tax return to file. You may owe federal income tax on income the inherited assets produce, which you report on your federal return, but not on the inheritance itself.
What happens if an inherited asset generates income — do I owe tax on that?
Yes. Interest from inherited savings accounts, rent from inherited property, and dividends from inherited stocks are all taxable income to you. You report this on your federal tax return. The amount of tax depends on your total income and tax bracket.