Georgia Estate Tax & Inheritance Tax: What You Need to Know

Georgia eliminated its state estate tax effective July 1, 2014, and has never had a state inheritance tax. For 2026, the federal estate tax exemption is $15,000,000 per individual under the One Big Beautiful Bill Act (signed July 4, 2025), leaving the vast majority of Georgia estates with no estate tax exposure at either the state or federal level.

This is general information, not legal advice. A Georgia estate planning attorney can help with your specific situation.

Georgia State Estate Tax: Eliminated in 2014

Georgia once had a state estate tax, but it was entirely tied to the federal “pick-up tax” — a credit that the federal government allowed states to claim against federal estate taxes. When Congress phased out the federal state death tax credit in 2001 and eliminated it in 2005, Georgia’s estate tax effectively went to zero. The Georgia legislature formalized this by repealing the estate tax statute outright. Effective July 1, 2014, Georgia law expressly provides that there shall be no estate taxes levied by the state and no estate tax returns shall be required. No Georgia estate tax filing is needed regardless of the size of the estate.

No Georgia Inheritance Tax

Georgia has never imposed an inheritance tax — a tax on the person who receives assets from an estate. This distinguishes Georgia from states like Maryland or Iowa that tax beneficiaries based on their relationship to the decedent. In Georgia, heirs and beneficiaries receive inherited assets free of any state-level transfer tax.

No Georgia Gift Tax

Georgia also has no state gift tax. Lifetime transfers of property between individuals — whether outright gifts, below-market sales, or other gratuitous transfers — do not trigger any Georgia tax obligation.

Federal Estate Tax: $15 Million Exemption in 2026

The federal estate tax still applies to very large estates. Under the One Big Beautiful Bill Act (signed July 4, 2025), the federal estate tax exemption was permanently increased to $15,000,000 per individual, indexed for inflation in future years. For a married couple, the exemption can reach $30,000,000 through the portability election, which allows a surviving spouse to use any unused exemption from the deceased spouse’s estate.

Estates with a gross value below $15,000,000 owe no federal estate tax. The federal tax rate on amounts above the exemption is 40 percent, so for the rare Georgia estate that exceeds the threshold, the exposure can be significant.

Stepped-Up Basis

Even when no estate tax is due, estates can have important income tax implications. Assets inherited from a decedent generally receive a “stepped-up” cost basis equal to their fair market value on the date of death. This means heirs who immediately sell inherited property owe little or no capital gains tax on appreciation that occurred during the decedent’s lifetime — a significant benefit entirely separate from the estate tax question.

Who Still Needs Federal Estate Tax Planning

Most Georgia families will never owe federal estate tax under the $15,000,000 exemption. However, owners of closely held businesses, large real estate portfolios, or substantial investment accounts may still benefit from planning strategies — such as irrevocable life insurance trusts, family limited partnerships, or charitable vehicles — that reduce the taxable estate or provide liquidity to pay any tax that is due.

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Frequently asked questions

Does Georgia have an estate tax?

No. Georgia eliminated its state estate tax effective July 1, 2014. The state statute expressly provides that 'on and after July 1, 2014, there shall be no estate taxes levied by the state and no estate tax returns shall be required.'

Does Georgia have an inheritance tax?

No. Georgia has never imposed a state inheritance tax on people who receive assets from an estate.

What is the federal estate tax exemption in 2026?

The federal estate tax exemption is $15,000,000 per individual ($30,000,000 for a married couple using portability) in 2026, under the One Big Beautiful Bill Act signed July 4, 2025. The exemption is indexed for inflation going forward. Estates under $15 million owe no federal estate tax.

Related guides

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Estate and Inheritance Taxes in Georgia