Does Ohio Have an Estate Tax?

You try to close a bank account belonging to your parent. The bank won't release a cent — they want a state tax waiver first. You don't know what that is. You call the county auditor. They need one too before they'll record the deed transfer. Everything is frozen.

This used to happen in Ohio. It doesn't anymore.

Ohio repealed its estate tax effective January 1, 2013 (ORC 5731.21). The tax itself is gone — but what really changed was the mechanism behind it. The state used to hold a legal grip on asset transfers until it confirmed no tax was owed. Banks couldn't release accounts. Recorders couldn't transfer property. That grip is gone.

Ohio also has no inheritance tax — meaning beneficiaries owe nothing to the state on what they receive.

Income tax filings still apply after a death in Ohio. Knowing about them before they're due is the difference between an orderly estate and a scramble.

Ohio Repealed Its Estate Tax in 2013

Before 2013, settling an Ohio estate meant obtaining state tax waivers — ET 12, ET 13, and ET 14 — before financial institutions would release accounts or county auditors would record deed transfers. Every transfer sat frozen while those forms moved through the Department of Taxation.

That system is gone. No ET Form 2, no ET Form 22, no waivers. If you're transferring accounts, liquidating investments, or recording a deed in Ohio today, you're not waiting for the state. Ohio joined the majority of U.S. states that have eliminated the estate tax — a broad shift that reflects just how burdensome the old system was for ordinary families settling modest estates.

Ohio Also Has No Inheritance Tax

Estate tax is paid by the estate before assets reach beneficiaries. Inheritance tax is paid by beneficiaries themselves after they receive assets — calculated as a percentage based on their relationship to the deceased. Ohio abolished both.

As of 2025, six states still have inheritance taxes: Kentucky, Pennsylvania, New Jersey, Maryland, Nebraska, and Iowa. If the deceased had property located in one of those states, those states' rules may still apply to assets within their borders. As a beneficiary of an Ohio resident, you owe nothing to Ohio — regardless of the size of the inheritance or your relationship to the deceased.

What Tax Filings Still Apply After a Death in Ohio

Final individual income tax return (IT 1040)

Any income the deceased earned during the year they died — wages, retirement distributions, rental income, investment gains, Social Security — must be reported on a final Ohio IT 1040, marked "If deceased." A surviving spouse filing jointly files as usual. For single filers, whoever the court appoints to manage the estate (the "personal representative") files on behalf of the estate. Due April 15 of the following year.

Fiduciary income tax return (IT 1041)

When someone dies, their estate becomes a separate taxable entity. If that estate stays open and earns income — rent from an unsold house, dividends in an investment account, interest on a checking account — Ohio taxes that income separately on IT 1041.

IT 1041 is due April 15 each year the estate remains open with taxable income. One important exception: if the personal representative distributes all income to beneficiaries in the same tax year it's earned, the estate itself owes zero tax and may not need to file at all. Families who close the estate quickly — accounts liquidated, property sold, everything distributed before December 31 — often never touch this form.

A simple way to think about it: did the estate earn any income while it was open? If the answer is no — or if everything was distributed to beneficiaries before year-end — IT 1041 may not apply.

If you're uncertain whether the estate generated enough income to trigger an IT 1041 requirement, that's the moment to call a CPA who handles fiduciary returns — not after you've made a filing decision you can't undo. Note that the CPA you use for your own taxes may never have touched an IT 1041; estate fiduciary returns are a specialty. The worry that tends to linger when going it alone: "Did I miss an income source? Will the audit find it two years later, after I've already distributed everything to the beneficiaries?" That's not irrational — it's exactly what the audit window is designed for. Ohio has a four-year window on filed returns; some practitioners cite a longer window under ORC 5747.16 when no return was filed at all. A specialist closes that loop.

Federal estate tax (Form 706)

Federal estate tax applies only above $13.99 million (2025 exemption, applied to the gross estate before debts). For virtually every Ohio family, this doesn't apply. No Form 706 is due unless the estate clears that threshold before deductions. This exemption is tied to Tax Cuts and Jobs Act provisions subject to future congressional action — something estates in the multi-million dollar range should monitor.

Most families piece together this information from multiple state agency websites, a few phone calls, and a PDF from the Ohio Department of Taxation. If you'd rather have it in one place, the Ohio Estate Settlement Guide covers everything from the first week through final distribution — so a deadline doesn't arrive before you knew the step existed.

Claiming a Tax Refund for a Deceased Ohio Resident

Here's the scenario that catches families off guard: the deceased is owed a refund.

If the final IT 1040 shows a refund due and the deceased was a single filer, Ohio issues the check in the decedent's name only. You can't deposit it. You can't cash it. It arrives in the mail and there's nothing obvious to do with it.

To get those funds released, send all of the following — together, in one package — to the Ohio Department of Taxation's Revenue Accounting division:

• The original refund check (do not cash or endorse it)
• A certified copy of the death certificate
• Federal Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer)
• A court-issued Letter of Authority naming you as personal representative

Processing takes 8 to 10 weeks once Ohio receives the complete package. Sending documents separately restarts the review.

When to Hire a CPA vs. Handle It Yourself

The final IT 1040 is usually manageable. If the deceased had straightforward income — regular wages, a pension, standard Social Security — a tax preparer familiar with similar returns can handle it.

The IT 1041 is different. If the estate stays open across more than one tax year, if there's rental income or complex investment activity, or if you're managing a trust alongside the estate, hire a CPA who handles fiduciary returns. Paying someone who's done this before closes the loop on the specific worry that follows the DIY path.

For a simple estate with just a few accounts and no property — closed before year-end with all income distributed to beneficiaries — IT 1041 may not need to be filed at all.

As you work through this, collect income statements as they arrive: 1099s, W-2s, brokerage year-end summaries. They come in the mail. They're easy to lose. You'll need them.

Estate settlement involves more than tax filings — probate court filings, creditor notices, asset appraisals, deed transfers, beneficiary distributions, all running on timelines that don't pause. The Ohio Estate Settlement Guide lays out the full sequence so nothing gets missed and no deadline arrives before you knew it was coming.

Ohio eliminated its estate tax over a decade ago. No waivers, no state clearance required, no inheritance tax owed by beneficiaries. What remains is ordinary income tax on the right forms, filed on time, with one specific procedure if the deceased was owed a refund. Knowing those details in advance changes the whole experience of settling an Ohio estate.

See more Ohio guides →