How much is inheritance tax in Texas is a common question for families planning estates and for people expecting to receive property, money, or investments from a loved one. As of January 2026, the answer remains clear and fully confirmed: Texas does not charge any state inheritance tax. Heirs do not pay a state tax simply for receiving an inheritance, regardless of the size of the estate.
This policy places Texas among the majority of U.S. states that have eliminated inheritance taxes entirely. It also makes Texas one of the most favorable states for passing wealth to the next generation.
Table of Contents
What Inheritance Tax Means
An inheritance tax is a state-level tax charged to beneficiaries when they receive assets after someone’s death. In states that still impose it, the rate often depends on:
- The value of the inheritance
- The relationship between the heir and the deceased
- The type of asset received
Some states tax distant relatives or non-family heirs at higher rates, while exempting spouses and children.
Texas, however, does not impose this type of tax at all.
Does Texas Have an Inheritance Tax in 2026?
No. Texas does not levy an inheritance tax in 2026.
If you inherit:
- Cash
- Real estate
- Retirement accounts
- Stocks and bonds
- Business interests
You will not owe any inheritance tax to the State of Texas.
This applies whether you inherit a modest amount or a very large estate. The state does not assess a percentage, a filing fee, or a special inheritance return.
Does Texas Have an Estate Tax?
Texas also does not have a state estate tax.
An estate tax is different from an inheritance tax. It is charged on the total value of a person’s estate before assets are distributed to heirs. Some states impose both estate and inheritance taxes. Texas imposes neither.
So at the state level:
| Tax Type | Texas in 2026 |
|---|---|
| Inheritance Tax | None |
| Estate Tax | None |
| Gift Tax | None |
Federal Estate Tax and Texas Inheritances
Although Texas has no inheritance tax, very large estates may still be subject to federal estate tax.
For 2026, the federal estate tax exemption is:
- $15 million for an individual
- $30 million for a married couple
Only the portion of an estate that exceeds these thresholds is taxed. The top federal estate tax rate remains 40% on the amount above the exemption.
Most estates in the United States fall well below these limits. As a result, the vast majority of Texans will never owe any estate or inheritance tax at either the state or federal level.
Do Beneficiaries Pay Income Tax on Inheritances?
In most cases, no.
Inherited money and property are not treated as regular income for federal income tax purposes. You generally do not report the value of an inheritance on your tax return.
However, income generated after you inherit an asset may be taxable. Examples include:
- Rent from an inherited house
- Dividends from inherited stocks
- Interest from inherited savings or bonds
The inheritance itself is not taxed as income, but future earnings from it usually are.
Inheriting Property in Texas
If you inherit a home or land in Texas:
- You do not pay inheritance tax.
- You may owe ongoing property taxes once the property is in your name.
- If you later sell the property, capital gains tax rules may apply based on the stepped-up basis at the time of death.
Texas property tax rates are determined locally and are separate from inheritance and estate taxation.
What If the Estate Is in Another State?
If you live in Texas but inherit from someone who lived in a state that still has an inheritance tax, that state’s laws may apply. In that situation, the tax is based on the deceased person’s state of residence, not yours.
Texas law cannot eliminate another state’s inheritance tax, but it does ensure that Texas itself will not impose one.
Why Texas Has No Inheritance Tax
Texas repealed its inheritance tax years ago and later strengthened constitutional protections to prevent such a tax from being reintroduced. This reflects the state’s broader tax structure, which also includes:
- No state income tax
- No state estate tax
- No state gift tax
For estate planning, this simplifies wealth transfers and reduces administrative costs for families.
Key Takeaways
- How much is inheritance tax in Texas in 2026?
Zero. Texas does not charge inheritance tax. - There is also no Texas estate tax.
- Only very large estates may face federal estate tax above the $15 million individual exemption.
- Most beneficiaries in Texas receive inheritances without paying any tax at all.
FAQ
Q: Is inheritance taxed in Texas in 2026?
No. Texas does not impose any inheritance tax.
Q: Do children pay inheritance tax in Texas?
No. Children, spouses, relatives, and non-relatives all pay zero state inheritance tax.
Q: Is there a limit before inheritance is taxed in Texas?
No. Since there is no inheritance tax, there is no threshold or filing requirement at the state level.
Q: Does Texas tax inherited retirement accounts?
Texas does not. Federal rules may apply when you withdraw funds, but the inheritance itself is not taxed by the state.
Q: Can Texas bring back inheritance tax in the future?
Current constitutional protections make that highly unlikely without a statewide voter-approved change.
Disclaimer
This article is for general informational and educational purposes only and does not constitute legal, tax, or financial advice. Tax laws can change, and individual situations vary. For guidance specific to your estate or inheritance, consult a licensed tax professional, attorney, or financial advisor.
How much is inheritance tax in Texas remains one of the simplest tax questions in the country to answer in 2026: none at all. The state continues to offer a tax-free environment for heirs, making estate transfers easier and more predictable for families.
Stay informed, and feel free to share your thoughts or questions in the comments to keep the conversation going.
