Does Ohio Have a Death Tax or Inheritance Tax?
Gain clarity on the financial obligations for estates and beneficiaries in Ohio. Learn how current state laws differ from federal tax-level requirements.
Ohio does not have a state-level death tax, which includes both estate and inheritance taxes. This is a point of confusion for residents because the state did have an estate tax in the past. While Ohio law simplifies the process for most estates, federal regulations can still apply to a small number of very large estates.
The Repeal of the Ohio Estate Tax
Ohio previously levied its own estate tax, but this was repealed by the legislature. The repeal became effective for individuals who passed away on or after January 1, 2013. For any death occurring on that date or later, the decedent’s estate is not subject to any Ohio estate tax. The elimination of this tax means that assets can pass to designated heirs without reduction from a state-level tax assessment, simplifying the process for executors.
The Federal Estate Tax
Even though Ohio does not have its own estate tax, a separate federal estate tax still exists. This tax is administered by the Internal Revenue Service (IRS) and applies to the total value of a person’s assets at death. This federal tax impacts only a very small fraction of the population due to a substantial exemption amount, which is adjusted for inflation.
For estates of individuals who pass away in 2025, the federal estate tax exemption is $13.99 million. An estate will not owe any federal estate tax unless its total value exceeds this threshold. For a married couple, this exemption can be combined, allowing them to pass on nearly $28 million without incurring federal tax. The tax rate on the value of an estate that exceeds the exemption amount is a flat 40%.
Ohio Inheritance Tax Considerations
An estate tax is levied on the total net value of the deceased person’s property before it is distributed to beneficiaries. In contrast, an inheritance tax is a tax that the beneficiaries, or heirs, must pay on the assets they receive. The responsibility for payment is a key difference between the two.
Ohio does not have an inheritance tax. This means that if you are a resident of Ohio and you inherit property from someone who also lived in Ohio, you will not owe any state tax on that inheritance. The absence of both taxes at the state level makes Ohio a relatively straightforward state for estate administration.