Fact-checked and verified on July 7, 2026
If you own a house in Montgomery County, MD and you are dealing with inherited property, this page covers what actually happens next — the local timeline, what it costs, and the options that stay open to you. Everything below is specific to Montgomery County and how sales are handled in MD, not generic national advice.
In Montgomery County, Maryland, whether you pay taxes on an inherited house depends mostly on your relationship to the person who passed away and the total value of their estate. Most direct family members, such as children, spouses, and parents, do not owe any Maryland inheritance tax, though the estate itself might owe taxes if it is worth more than $5 million. While you likely won't pay a 'death tax' as a close relative, you will be responsible for ongoing property taxes and potential capital gains taxes if you sell the home later.
Maryland is the only state in the U.S. that has both an inheritance tax and an estate tax.
Source: https://www.marylandattorneygeneral.gov/Pages/HealthPolicy/Inheritance_Tax.aspx
Lineal heirs (spouses, children, parents, siblings, and grandchildren) are exempt from the 10% Maryland inheritance tax.
Source: https://registers.maryland.gov/main/faq.html#7
The Maryland state estate tax only applies to estates valued over $5 million as of 2024.
Source: https://www.marylandtaxes.gov/individual/estate-inheritance/index.php
Inherited property receives a 'stepped-up basis,' meaning capital gains taxes are calculated based on the home's value at the time of the owner's death, not when they first bought it.
Source: https://www.irs.gov/taxtopics/tc701
A 'Small Estate' in Maryland is generally defined as one with assets worth $50,000 or less (or $100,000 if the spouse is the sole heir).
Source: https://registers.maryland.gov/main/publications/infoguide.html
Maryland Register of Wills - Frequently Asked Questions
https://registers.maryland.gov/main/faq.html
Comptroller of Maryland - Estate and Inheritance Tax
https://www.marylandtaxes.gov/individual/estate-inheritance/index.php
Montgomery County Register of Wills
https://registers.maryland.gov/main/montgomery.html
Maryland Code, Tax-General Article § 7-203
https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?statute=gtg§ion=7-203
No repairs. Close in as little as 7 days.
No repairs. Close in as little as 7 days.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal, financial, or tax advice. Laws, timelines, and market conditions vary by state and change over time. Always consult a licensed attorney, financial advisor, or tax professional about your specific situation before making any decisions. Any cash offer is subject to a property evaluation, and closing timelines depend on title, occupancy, and other factors. Results described on this site are not a guarantee of any particular outcome. Black Girls Buy Houses LLC is a real estate investment company that purchases properties directly; we are not licensed real estate agents or brokers and do not provide brokerage services. We are committed to the letter and spirit of the Fair Housing Act and conduct business in accordance with all federal, state, and local fair housing laws.
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