Georgia is one of the majority of states with no death tax of any kind. That makes the tax side of settling an estate here simpler than the probate side, which is covered in the broader guide to estate planning in Georgia. This article explains why Georgia collects neither an estate tax nor an inheritance tax, and the three federal or income-tax rules that can still apply to money and property passing at death.
The short answer: no Georgia death tax
Georgia does not levy an estate tax or an inheritance tax. The state repealed its estate tax effective July 1, 2014. Under Georgia’s estate tax statute at O.C.G.A. § 48-12-1, no estate taxes are levied by the state and no state estate tax return is required, a point the Georgia Department of Revenue confirms in its estate tax guidance.
The older Georgia estate tax was never a standalone charge on wealth. It was a “pick-up” tax that equaled the credit the federal estate tax once allowed for state death taxes. When Congress phased out that federal credit, the Georgia tax it was tied to dropped to zero, and the legislature later removed the statute entirely. Nothing has replaced it, so a Georgia resident’s estate files no state death tax return regardless of its size.
Estate tax and inheritance tax are not the same thing
The two taxes are often used interchangeably, but they work differently and are paid by different people. An estate tax is charged to the estate itself, based on the total value of everything the person owned, and is paid before assets are distributed. An inheritance tax is charged to each person who receives property, based on what that individual inherits and sometimes on how closely related they were to the deceased.
Georgia imposes neither. A surviving spouse, child, sibling, friend, or charity that inherits from a Georgia estate reports nothing to the state for the transfer and pays no state tax on the amount received. The distinction still matters, though, because inheriting from a person who lived in a different state can bring that other state’s inheritance tax into play, as explained below.
When the federal estate tax can still apply
The federal estate tax is separate from anything the state does, and it applies in every state, Georgia included. It reaches only large estates. A federal estate tax return is required when the gross estate, increased by certain lifetime gifts, exceeds the filing threshold for the year of death. As of 2026, the IRS sets that threshold at $15 million per person, and the tax applies only to the value above the exemption.
Because the exemption is this high, the federal estate tax affects a very small share of estates. A married couple can often pass roughly twice the individual amount by using both spouses’ exemptions, including the ability to carry over a deceased spouse’s unused exemption. Estates below the threshold file no federal estate tax return at all.
Income taxes that can still touch an inheritance
No death tax does not mean no tax ever. Receiving an inheritance is generally not income, so the lump sum a beneficiary inherits is not reported on a Georgia or federal income tax return. Two situations are exceptions worth understanding.
The first is income earned by inherited assets. A traditional IRA or 401(k) left to a beneficiary carries built-in income tax: distributions the beneficiary takes are taxed as ordinary income, on both the federal and Georgia returns, the same way they would have been for the original owner. This is treated as “income in respect of a decedent.” The Georgia Department of Revenue’s estate tax FAQ addresses what a person who inherits money or property needs to do for state tax purposes.
The second is the estate’s own income during administration. If an estate earns income, interest, rent, or dividends, while it is being settled, the estate is a separate taxpayer and may have to file its own returns. Georgia collects this through the Form 501 fiduciary income tax return, which mirrors the federal fiduciary return, and it is a tax on income the estate generates, not a tax on the transfer of assets.
Selling inherited property raises a related point. Inherited assets receive a new cost basis equal to their fair market value on the date of death under 26 U.S.C. § 1014, often called a “stepped-up basis.” A beneficiary who sells inherited stock or real estate soon after death usually owes capital gains tax only on appreciation after the date of death, not on the full increase in value during the deceased person’s lifetime.
Inheriting from someone who lived in another state
Georgia’s lack of a death tax protects estates of people who lived in Georgia. It does not override the tax rules of other states. A handful of states still impose an inheritance tax collected from the person who receives the property, and a few impose their own estate tax with a lower exemption than the federal one.
Two cross-border situations come up most often. A Georgia resident who inherits from a relative who lived and died in an inheritance-tax state may owe that state’s tax on the inheritance, even though the beneficiary lives in Georgia. And a Georgia estate that holds real estate physically located in another state can face that state’s estate tax on the out-of-state property. The Department of Revenue’s guidance notes that a Georgia resident’s estate may need to account for estate or inheritance taxes owed to other states where property is located.
How property actually passes at death in Georgia
With no state death tax to plan around, the practical questions in a Georgia estate are about how title moves from the deceased person to the heirs, not about a tax bill. Assets fall into two broad groups. Probate assets, those in the deceased person’s name alone, pass through the probate court under the terms of a will, or under Georgia’s intestacy rules when there is no will. Non-probate assets pass directly by their own terms: jointly owned property, accounts with a named beneficiary, and property in a living trust.
One transfer tool changes how real estate fits into that picture. Georgia now recognizes a transfer on death deed, which lets an owner name a beneficiary who takes the property automatically at death without probate. Property that passes this way still receives the stepped-up basis described above and, like everything else in a Georgia estate, is not subject to any state death tax.
Frequently asked questions
Does Georgia tax money I inherit from my parents?
No. Georgia has no inheritance tax, so a child who inherits cash, a house, or investments from a parent’s Georgia estate reports nothing to the state and pays no state tax on the amount received. Income later earned by those assets, for example, rent on an inherited house, is taxable in the normal way.
Do I have to file a Georgia estate tax return?
No. Georgia stopped requiring estate tax returns effective July 1, 2014, and the Georgia Department of Revenue does not accept or require a state estate tax filing. A large estate may still need to file a federal estate tax return with the IRS.
How big does an estate have to be before the federal estate tax applies?
A federal return is required only when the gross estate, plus certain lifetime gifts, exceeds the year-of-death threshold, $15 million for 2026 under IRS rules. The tax applies only to value above that exemption, so the large majority of estates owe nothing.
Is an inherited IRA taxed in Georgia?
The account itself is not subject to a death tax, but withdrawals a beneficiary takes from an inherited traditional IRA or 401(k) are taxed as ordinary income on both the federal and Georgia income tax returns. A Roth account funded with after-tax dollars is generally an exception. This is income tax on distributions, not a tax on the inheritance.
If I sell a house I inherited, will I owe tax on the whole value?
Usually not. Inherited property takes a new cost basis equal to its value on the date of death under 26 U.S.C. § 1014. Capital gains tax applies only to appreciation after that date, so a sale shortly after death often produces little or no taxable gain.