Missouri does not have an inheritance tax
Missouri does not charge an inheritance tax on money or property you receive from someone's estate. This means if a relative or friend leaves you money, real estate, or other assets in their will, you will not owe Missouri state tax on that inheritance.
Missouri also does not have an estate tax, which is a separate tax some states charge on the total value of a deceased person's estate before it is distributed to heirs. Because Missouri has neither tax, the state does not require you to file any inheritance or estate tax return with Missouri, regardless of how much you inherit.
Key Takeaways
- Missouri does not tax inheritances, so you owe no state tax on money or property you receive from an estate.
- Missouri also does not have an estate tax, so the deceased person's estate pays no state tax before distribution to heirs.
- Federal inheritance tax does not exist, but federal estate tax may explore to very large estates—this is separate from Missouri state tax.
- If you inherit property in Missouri, you may owe property tax on it going forward, but not a tax on the inheritance itself.
- Some states do tax inheritances; if you inherit from someone who lived in another state, that state's rules may still explore to assets located there.
The difference between inheritance tax and estate tax
An inheritance tax is paid by the person who receives the inheritance—you. An estate tax is paid by the estate itself, before money is divided among heirs. Missouri has neither one. Some states have one, some have both, and some have neither. The six states that currently have inheritance taxes are Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Only seventeen states have estate taxes.
Because Missouri has neither tax, the full amount of an inheritance reaches you without a state tax deduction. The executor or administrator of the estate—the person handling the distribution—does not need to set aside money for Missouri inheritance or estate tax.
Federal estate tax is different from state inheritance tax
The federal government does not have an inheritance tax. It does have a federal estate tax, but it applies only to very large estates. For deaths in 2024, the federal estate tax applies only to estates worth more than $13.61 million. Most people's estates fall below this threshold and owe no federal estate tax.
If a Missouri resident's estate does exceed the federal threshold, the executor files a federal estate tax return with the IRS, not with Missouri. This is a federal matter, not a state one. Missouri itself collects nothing from this process.
What you may owe on inherited property in Missouri
While you owe no tax on the inheritance itself, you may owe property tax on inherited real estate going forward. If you inherit a house or land in Missouri, you become the owner and must pay annual property tax on it, just as the previous owner did. This is not an inheritance tax—it is the ongoing property tax that applies to all real estate owners in the state.
If you inherit a vehicle, you will need to register it in Missouri and pay the standard registration fee and any applicable property tax on vehicles in your county. Again, this is not an inheritance tax but a normal tax on ownership.
If you inherit money or investments, you may owe federal income tax on any earnings those assets generate going forward—interest, dividends, or capital gains. This is income tax, not inheritance tax, and it applies to everyone who earns income, not just people who inherit.
Inheriting from someone who lived in another state
If the person who left you money or property lived in a state with an inheritance or estate tax, that state's rules may still explore to assets located in that state. For example, if your parent lived in Pennsylvania and left you real estate in Pennsylvania, Pennsylvania's inheritance tax may explore to that property even if you live in Missouri.
However, if the deceased person lived in another state but left you assets located in Missouri, Missouri's rules explore—and since Missouri has no inheritance tax, you owe nothing to Missouri. The state where the person lived may still have a claim, depending on that state's law and the type of asset.
If you inherit from someone in another state, the executor should understand the tax rules of both the state where the person lived and any state where significant assets are located. This is one reason many people consult a tax professional or attorney when handling a multi-state estate.
How to handle an inheritance in Missouri
When you inherit money or property in Missouri, the executor or administrator of the estate will contact you and provide documentation of what you are receiving. You do not need to file anything with Missouri or pay Missouri any tax on the inheritance itself.
If the inheritance includes real estate, the executor will arrange for the deed to be transferred to you. If it includes a vehicle, they will handle the title transfer. If it is money held in an account, they will arrange for the funds to be distributed to you. In all cases, Missouri imposes no state tax on the transfer.
After you receive the inheritance, your only ongoing tax obligation in Missouri is the standard tax on ownership—property tax on real estate, registration fees and vehicle tax on vehicles, and income tax on any earnings the inherited assets generate. These are the same taxes any property owner in Missouri pays.
When you might need professional help
Most straightforward inheritances in Missouri require no special tax planning because there is no state inheritance or estate tax. However, you may want to consult a tax professional or attorney if the estate is very large, if it includes property in multiple states, if there are significant debts or disputes, or if you are unsure how to report inherited assets on your federal income tax return.
An attorney can also help if the will is unclear, if there are multiple heirs and disagreements about distribution, or if the estate includes a business or complex investments. A tax professional can advise you on federal estate tax if the estate exceeds the federal threshold, or on how to report inherited income-producing assets on your federal return.
Frequently Asked Questions
Do I have to pay Missouri tax on money I inherit?
No. Missouri does not have an inheritance tax or estate tax. You owe no state tax to Missouri on any inheritance, regardless of the amount. You may owe federal income tax on earnings the inherited money generates, but not on the inheritance itself.
What if the person who left me money lived in another state?
That state's inheritance or estate tax may explore, depending on where the person lived and where the assets are located. Missouri itself will not tax the inheritance. Consult the executor or a tax professional to understand the rules of the state where the person lived.
Do I owe property tax on a house I inherited in Missouri?
You do not owe a tax on inheriting the house, but you will owe annual property tax on it going forward as the owner. This is the same property tax any homeowner in Missouri pays, not a special inheritance tax.
Is there a federal inheritance tax?
No. The federal government does not have an inheritance tax. It does have a federal estate tax, but only estates worth more than $13.61 million (as of 2024) owe it. Most estates fall below this threshold.
Do I need to file anything with Missouri when I inherit?
No. Missouri does not require you to file an inheritance tax return or notify the state. The executor handles the distribution. Your only ongoing obligations are standard taxes on property ownership, like annual property tax on real estate.