Inheritance tax and estate tax are different things
People use the two names interchangeably, but they tax different parties:
- An inheritance tax is charged to the person receiving property, and the rate often depends on how closely related they were to the person who died.
- An estate tax is charged to the estate itself, based on the total value left behind, before anything is distributed.
Ohio has neither today. It had an inheritance tax first, then an estate tax, and it has ended both.
Ohio’s estate tax ended with deaths on January 1, 2013
The Ohio Department of Taxation’s 2013 summary is direct: the Ohio estate tax has been repealed for individuals dying on or after January 1, 2013, under House Bill 153 of the 129th General Assembly. Governor Kasich signed the repeal into law in 2011 as part of the state budget.
Before the repeal, the tax hit estates with a net taxable value above $338,333, because a credit of up to $13,900 wiped out the tax on anything smaller. Rates ran from 6% to 7% on the amounts above that line. None of that applies to a death in 2013 or later.
House Bill 153 also wound down the old Ohio inheritance tax, by requiring all claims and inquiries about it to reach the Department of Taxation before January 1, 2013.
Older deaths and the 2021 sunset
If the person died before 2013, the old estate tax technically applied, but a later law closed most of those files. As reported by the Geauga County Auditor from the Department of Taxation’s notice, House Bill 110 of the 134th General Assembly provides that, effective January 1, 2022, no Ohio estate tax is due on:
- property first discovered after December 31, 2021; or
- property discovered before then but not disclosed or reported by December 31, 2021.
These provisions apply even when the date of death was before January 1, 2013. If you are clearing title on a house from an old estate and a title examiner asks about an Ohio estate tax release, show them this rule and check with the county auditor.
The federal estate tax, for very large estates
The federal estate tax still exists, but it only reaches very large estates. The IRS lists the basic exclusion amount for 2026 at $15,000,000, set when Public Law 119-21 amended section 2010(c)(3) of the tax code in 2025. For comparison, the IRS table shows $13,990,000 for 2025 and $13,610,000 for 2024.
For a typical Northeast Ohio family, where the house and savings together are a small fraction of that figure, the federal tax is not a practical concern. An estate under the exclusion amount generally owes no federal estate tax, though an executor may still file Form 706 for other reasons, such as passing a deceased spouse’s unused exclusion to the survivor. The estate’s executor and accountant handle this, not the heirs individually.
Property in another state can be taxed there
Ohio’s repeal doesn’t protect property located elsewhere. A few states still have an inheritance tax. Pennsylvania is the closest to Northeast Ohio, and its Department of Revenue lists these rates:
| Who receives it | Pennsylvania rate |
|---|---|
| Surviving spouse, or a parent from a child 21 or younger | 0% |
| Children, grandchildren and other direct descendants | 4.5% |
| Siblings | 12% |
| Other heirs | 15% |
If the Ohio parent also owned a cabin or rental in another state, ask a tax professional in that state whether its tax applies. The same goes in reverse: an Ohio heir who inherits from a parent who lived in Pennsylvania may be dealing with Pennsylvania’s tax on the whole estate, not just the real estate. Pennsylvania’s Department of Revenue also notes that property owned jointly between spouses is exempt from its inheritance tax.
Costs heirs still carry on an inherited Ohio house
No inheritance tax doesn’t mean no costs. From the date of death until the house is sold, someone pays:
- Property taxes, which keep accruing and are split between seller and buyer at closing. The property tax proration guide explains how Ohio’s taxes paid in arrears are handled.
- The conveyance fee, charged by the county when the house is sold. See the Ohio conveyance fee guide.
- Estate income tax, if the estate earns money. IRS Publication 559 says an estate with gross income of $600 or more in a year must file Form 1041, and gains from selling property count toward that.
- Insurance, utilities and upkeep, which are estate expenses while the estate is open.
None of these depend on who inherits, which is the point of Ohio’s repeal: a niece or a family friend pays the same as a child. In states with an inheritance tax, the rate often rises as the relationship gets more distant.
The tax that does matter: income tax when you sell
Receiving the house is tax-free in Ohio. Selling it can create income tax, but only on gain above the house’s value at the date of death. IRS Publication 551 says your basis in inherited property is generally its fair market value on the date of death, so a house sold soon after the death for about that value often shows little or no gain.
The capital gains guide for inherited houses walks through that math, and whether Ohio taxes a house sale covers the state income tax side. If you are ready to sell an inherited Ohio house, our inherited house page explains what a direct sale involves. A tax professional can confirm how these rules apply to your estate.
