If you're planning your estate or expecting to receive an inheritance in the Sunshine State, you’ve likely wondered, “Is there an inheritance tax in Florida?” The good news: Florida does not impose an inheritance tax. However, that doesn’t mean taxes are completely off the table. Understanding how inheritance tax in Florida works—along with other related tax laws—can help protect your assets and your loved ones.

This guide breaks down what you need to know about Florida inheritance tax, who may still be affected, and how proper planning can make all the difference for you and your beneficiaries.

Is There an Inheritance Tax in Florida?

No—Florida does not have a state inheritance tax. That means if someone passes away in Florida and leaves assets to heirs, the state itself will not tax the inheritance. This makes Florida one of the more favorable states for estate and inheritance planning.

However, depending on the circumstances, federal estate taxes and taxes in other states may still apply, especially if the deceased owned property or assets outside Florida.

What Is Inheritance Tax, and How Does It Differ From Estate Tax?

Inheritance tax is typically paid by the person who inherits the money or property. In contrast, estate tax is paid out of the deceased person’s estate before any distributions are made to beneficiaries.

In Florida, you don’t need to worry about inheritance tax at the state level, but you may need to consider:

• Federal estate taxes (for estates exceeding federal thresholds)

• Out-of-state inheritance taxes, if assets are held in states that impose such taxes

• Transfer taxes, which may apply at the local level on real estate or other property transfers

Who Is Responsible for Paying Inheritance Taxes in Florida?

Because Florida does not have an inheritance tax, heirs are not responsible for paying state taxes on what they receive. However, they may be liable for:

• Federal estate tax, if the estate exceeds the exemption amount (over $13 million for individuals as of 2025)

• Income tax on inherited retirement accounts like IRAs or 401(k)s (distributions are taxable)

• State inheritance taxes if the decedent lived or owned property in a state that still imposes them (like Pennsylvania or Iowa)

How Is Inheritance Tax Calculated in Other States?

If you inherit assets located in a state that has an inheritance tax, the amount you owe is typically based on:

• The value of what you inherited

• Your relationship to the deceased (closer relatives pay less or nothing)

• That state’s current tax rates and exemptions

Although this doesn’t apply within Florida, it’s worth considering if you’re receiving assets from another jurisdiction.

Florida Inheritance Tax: What Exemptions and Strategies Should You Know?

Florida residents enjoy no state inheritance tax, but that doesn’t mean planning isn’t important. You can still take steps to protect your estate and reduce possible tax burdens elsewhere:

✅ Name beneficiaries on accounts: Designate beneficiaries for life insurance, bank accounts, and retirement plans to avoid probate.
✅ Use living trusts: A revocable living trust can help avoid probate, maintain privacy, and smooth asset transfer.
✅ Consider gifting: Lifetime gifts may help reduce your estate’s size below federal estate tax thresholds.
✅ Update estate plans regularly: Laws and family circumstances change. Keep your documents current.

Why Work With a Florida Estate Planning Attorney?

Even without a Florida inheritance tax, working with an experienced estate attorney ensures your estate is fully protected and compliant with all tax regulations. An attorney can:

• Help minimize federal estate tax exposure

• Assist with probate and legal documentation

• Advise on trusts, wills, and beneficiary designations

• Ensure your estate plan aligns with your long-term wishes

Need Help With Inheritance Tax in Florida?

At The Law Offices of Mary King, we specialize in Florida estate planning, probate, and federal tax matters. Whether you're leaving a legacy or managing one, our experienced legal team will guide you through every step, making sure your estate is protected and your loved ones are secure.

📞 Call us today at 941-906-7585 or visit our website to schedule a consultation. Let’s ensure your estate is in good hands.

Final Thoughts: Is There an Inheritance Tax in Florida?

To recap: There is no Florida inheritance tax, making the state an appealing place for retirees and families looking to preserve wealth. But federal taxes and other obligations may still apply, so it’s essential to plan ahead.

Whether you're creating your estate plan or navigating an inheritance, having the right legal support can make all the difference. Don’t leave it to chance—make sure your estate plan is clear, compliant, and tax-efficient.