Estate Tax vs Inheritance Tax

Last Updated on August 21, 2022 by Paul Dunn

An estate tax is based on the net value of all property owned by a decedent at the time of their death. An estate tax is imposed on the decedent’s estate. An inheritance tax is imposed on the beneficiaries who receive property from the decedent. States that have inheritance taxes usually tax the decedent’s surviving spouse and children at lower rates than other beneficiaries.