Ohio Estate Tax: Does Ohio Have an Estate or Inheritance Tax?

Ohio does not have a state-level estate tax or inheritance tax. The state repealed its estate tax effective January 1, 2013, and has not reinstated it.

This is one of the strongest features of Ohio's estate planning landscape — your heirs will not owe state taxes simply for inheriting your assets, regardless of the estate's value.

What Changed in 2013

Before 2013, Ohio imposed a state estate tax on estates exceeding $338,333 in value, with rates ranging from 6% to 7%. The tax was collected by county auditors, and a portion was returned to the local government where the deceased resided.

The repeal eliminated this tax entirely. Estates of Ohio residents who died on or after January 1, 2013 owe no state estate tax regardless of size.

The Federal Estate Tax Still Applies

While Ohio imposes no state-level tax, the federal estate tax remains in effect. For 2026, the federal exemption is approximately $13.99 million per individual (double for married couples using portability).

This means the federal estate tax affects only estates worth roughly $14 million or more. For the vast majority of Ohio families, no estate tax — state or federal — applies at death.

What Happens After 2025

The current elevated federal exemption was set by the Tax Cuts and Jobs Act of 2017. Without congressional action, the exemption is scheduled to drop to approximately $7 million (adjusted for inflation) after December 31, 2025. Estates that would have been exempt under the higher threshold could become taxable under the lower one.

Ohio has shown no indication of reinstating a state-level estate tax, regardless of federal changes.

Ohio Inheritance Tax: Also Gone

Some states distinguish between estate taxes (paid by the estate) and inheritance taxes (paid by the person receiving the inheritance). Ohio has neither. Pennsylvania and Kentucky, for example, still impose inheritance taxes on certain beneficiaries — but Ohio heirs pay nothing at the state level.

This matters for Ohio residents inheriting from family in other states. If your parent dies in a state with an inheritance tax, you may owe tax to that state even though you live in Ohio.

Taxes Ohio Executors Do Need to Handle

No estate tax does not mean no tax obligations. Ohio executors must still address:

Fiduciary income tax (Ohio Form IT 1041). If the estate earns income during administration — interest, dividends, rent — and has federal taxable income after distributions, the executor must file a fiduciary income tax return. Late payment triggers a 5% per month penalty, up to 50%.

Final personal income tax return. The executor must file the deceased person's final Ohio IT 1040 for the tax year of death, covering income earned from January 1 through the date of death.

Federal estate tax return (Form 706). Only required if the gross estate exceeds the federal exemption threshold. Most Ohio estates will never need this filing.

Real property conveyance fees. When real estate transfers through probate, the county auditor may assess a conveyance fee. Transfers to a surviving spouse or through certain exempt categories (documented on DTE 100EX) are typically exempt.

What This Means for Your Estate Plan

Ohio's lack of a state estate or inheritance tax simplifies planning significantly. Your primary concerns are probate avoidance (keeping assets out of court), Medicaid estate recovery (Ohio's expanded recovery reaches non-probate assets), and ensuring your assets reach the right people through proper titling and beneficiary designations.

The Ohio Basic Estate Planning Kit focuses on these practical concerns — the transfer documents, execution sequences, and Medicaid planning guidance that actually matter for Ohio families, rather than tax structures that no longer apply.

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