Ohio does not have a state estate tax

Ohio stopped collecting an estate tax in 2013. If you die and leave property to your heirs, Ohio will not impose a state-level tax on that transfer. This is different from the federal estate tax, which the IRS still collects on estates above a certain value, but Ohio itself takes no cut.

Because Ohio has no estate tax, you do not owe the state anything based on what you leave behind. Your estate may still owe federal taxes if it exceeds the federal threshold, and you may owe income tax on certain inherited assets that generate income after you die — but those are separate from an estate tax.

Key Takeaways

  • Ohio repealed its estate tax in 2013, so the state collects no tax when you transfer property to heirs.
  • The federal estate tax still applies to estates over $13.61 million (2024), regardless of whether you live in Ohio.
  • Inherited income — such as interest, dividends, or rent from inherited property — is taxed as income, not as an estate tax.
  • Ohio residents with large estates should still plan for federal taxes and consult a tax professional about their specific situation.

How Ohio's repeal affects your estate planning

When Ohio had an estate tax, residents had to file a state return and pay tax on estates above a threshold. That threshold was lower than the federal one, which meant some Ohio estates paid state tax even if they owed nothing federally. Repealing the tax simplified the process for Ohio residents.

The repeal does not mean you can ignore estate planning. Federal taxes still apply, and the rules around who inherits what, how debts are paid, and whether your wishes are carried out still matter. An estate plan — whether a will, trust, or both — controls who gets your property and in what order, regardless of taxes.

Federal estate tax still applies to large Ohio estates

The federal government taxes estates over a certain amount. That threshold changes yearly and is currently $13.61 million for deaths in 2024. If your estate is smaller, you owe no federal estate tax. If it is larger, your heirs may owe federal tax on the amount above the threshold.

The federal threshold is scheduled to drop in 2026 unless Congress changes the law. It will fall to roughly $7 million per person (adjusted for inflation). This affects fewer Ohio residents now, but it is worth tracking if you have a large estate or expect to inherit one.

What taxes do apply to inherited property in Ohio

Ohio has no inheritance tax either, which means heirs do not pay tax simply because they received property. However, inherited property can generate taxable income after you receive it. If you inherit rental property, stocks that pay dividends, or a business, you will owe income tax on the money those assets earn.

You also do not step up the cost basis of inherited property in Ohio — that is a federal rule. When you inherit an asset, the IRS adjusts its value to what it was worth on the date of death, which usually means you pay less capital gains tax if you sell it soon after inheriting. This benefit applies regardless of state.

When you might still need estate tax planning in Ohio

Even without a state estate tax, large estates benefit from planning. If your estate will exceed the federal threshold, a tax professional can help you structure gifts, trusts, or other arrangements to reduce what your heirs owe. Some strategies also protect assets from creditors or control how property is distributed.

You should also consider whether you own property in other states. Some states still have estate or inheritance taxes, and property located in those states may be subject to their rules. A lawyer or tax professional can review your situation and advise whether you need to plan across state lines.

How to learn about federal estate tax applies to you

Start by estimating your total estate: the value of your home, bank accounts, investments, retirement accounts, life insurance, and any business interests. Add these together. If the total is below the federal threshold for the year you die, your estate owes no federal tax.

If your estate is close to or above the threshold, or if you expect it to grow, talk to an estate planning attorney or tax professional. They can review your specific assets and help you decide whether planning makes sense. Many people with estates under the threshold still use wills or trusts to control who inherits and avoid probate.

Frequently Asked Questions

Does Ohio tax me when I inherit money or property?

No. Ohio has no inheritance tax or estate tax, so you do not owe the state anything because you received an inheritance. However, if the inherited property generates income — such as rent or dividends — you will owe income tax on that income.

Will my heirs owe federal estate tax?

Only if your total estate exceeds the federal threshold, which is $13.61 million in 2024. Most Ohio residents fall below this limit. If you are unsure, a tax professional can estimate your estate value and tell you whether federal tax is a concern.

What if I own property in another state?

Some states still have estate or inheritance taxes. Property located in those states may be subject to their rules, even if you live in Ohio. A lawyer can review your out-of-state property and advise whether additional planning is needed.

Do I need an estate plan if I do not owe estate tax?

Yes. An estate plan — a will, trust, or both — controls who inherits your property, who manages your affairs if you become unable to, and how your debts and final expenses are paid. These decisions matter regardless of taxes.