The short answer is reassuring: Florida has no state estate tax and no inheritance tax. If you live in Florida and your estate is below the federal threshold, your heirs will generally receive what you leave them without paying any death tax — state or federal. This is one of the biggest financial advantages of living and dying as a Florida resident.
But "no death tax" does not mean "no tax planning." A handful of federal taxes can still apply to larger estates and to income earned after death, and the rules reward families who plan ahead.
Estate Tax vs. Inheritance Tax: The Difference
These two terms are often confused, but they are different taxes paid by different people:
| Tax | Who Pays It | Does Florida Have It? |
|---|---|---|
| Estate tax | The estate, before distribution | No (federal only) |
| Inheritance tax | The beneficiary who receives assets | No |
Florida Has No State Estate Tax
Florida does not impose a state estate tax. The Florida Constitution (Art. VII, § 5) limits any state "death tax" to the amount of the now-repealed federal state death tax credit. When Congress phased out that federal credit after 2004, Florida's estate tax effectively disappeared along with it. As a result, no Florida estate owes a state-level estate tax today.
Florida Has No Inheritance Tax
Florida also has no inheritance tax. A beneficiary who inherits cash, a home, a brokerage account, or any other asset from a Florida estate pays no Florida tax on the inheritance itself. A small number of other states (such as Pennsylvania and Kentucky) do tax inheritances — but Florida is not one of them.
The Federal Estate Tax Still Applies to Large Estates
While Florida imposes no estate tax, the federal estate tax can still apply — but only to very large estates. For 2026, the federal estate tax exemption is $15 million per individual, or $30 million for a married couple using portability. This amount was made permanent under the 2025 federal tax law and is indexed annually for inflation.
Only the value of an estate above the exemption is taxed, and the top federal estate tax rate is 40%. The vast majority of Florida families fall well under the exemption and owe no estate tax at all.
Taxes That Can Still Affect a Florida Estate
Even in a no-death-tax state, watch for these:
- Federal estate tax — only on estates above $15 million (2026)
- Income tax on inherited retirement accounts — distributions from inherited traditional IRAs and 401(k)s are taxable income to the beneficiary, and most non-spouse heirs must empty the account within 10 years
- Income on estate assets — interest, dividends, and rent earned after death are taxable
- Capital gains tax — on appreciation that occurs after the date of death (see below)
- Out-of-state property — real estate in another state may be subject to that state's estate or inheritance tax
The Stepped-Up Basis Advantage
One of the most valuable rules for heirs is the stepped-up basis. When you inherit an asset, its cost basis is generally adjusted to the fair market value on the date of death. If a home purchased decades ago for $100,000 is worth $500,000 at death, the heirs' basis becomes $500,000 — so selling it soon after produces little or no taxable gain. Because Florida has no state capital gains tax, only federal capital gains tax can ever apply, and the step-up often eliminates it.
Frequently Asked Questions
Related Reading
- How Long Does Probate Take in Florida? — no death tax still doesn't mean no probate.
- Do I Need a Will, a Trust, or Both in Florida? — the structure that passes wealth efficiently.
- Florida Homestead Exemption & Estate Planning — property-tax savings and the stepped-up-basis advantage on your home.
Make the Most of the Florida Advantage
No death tax is a head start — not a finished plan. Cornerstone builds estate plans that avoid probate, protect your spouse and homestead, and pass your wealth to the next generation as efficiently as Florida law allows.
Start Your Florida Estate Plan →This article is for general informational purposes and does not constitute legal or tax advice. Tax laws change and apply differently to each situation. Consult a licensed Florida attorney and a qualified tax advisor regarding your individual circumstances. Arthur Simpson, Esq. is licensed to practice law in the State of Florida.