Delaware does not have an inheritance tax, and it does not have a state estate tax either. Heirs of a Delaware resident owe nothing to the state on what they receive, regardless of the size of the estate or their relationship to the person who died. The only death tax that can still reach a Delaware estate is the federal estate tax, and that applies only to estates worth more than $15 million per person in 2026.
When Delaware Dropped Its Death Taxes
Delaware’s inheritance tax was repealed effective January 1, 1999 through House Bill 771.1Delaware Code Online. Delaware Code Title 30 Chapter 13 – Inheritance [Repealed] Before the repeal, the state taxed inherited assets at different rates depending on how closely the beneficiary was related to the person who died. Since 1999, no beneficiary of a Delaware decedent has owed state tax on an inheritance.
A separate state estate tax existed more recently. It was reinstated in 2009 and then allowed to sunset. The governor signed House Bill 16 in July 2017, and the Delaware estate tax expired on December 31, 2017.2Delaware Code Online. Delaware Code Title 30 Chapter 15 – Estate Tax [Repealed] From January 1, 2018 forward, Delaware has imposed no death tax of any kind at the state level.
That matters for two reasons. First, the repeal is settled law, not a temporary provision set to expire. Second, Delaware is now in a smaller group of states that tax neither the estate nor the heir, which is one of the reasons the state is attractive for people thinking carefully about where to live in retirement or where to establish a trust.
What Heirs Actually Owe at the State Level
Nothing. If you inherit cash, stocks, a house, retirement accounts, personal belongings, or any other property from someone who lived in Delaware, you do not file a Delaware inheritance tax return, and you do not pay a Delaware inheritance tax. There is no exemption amount to calculate, no beneficiary class to look up, and no rate schedule to apply, because the tax itself no longer exists.
The same is true of the Delaware estate tax. The estate itself owes nothing to the state. A personal representative handling a Delaware estate does not file a Delaware estate tax return for anyone who died on or after January 1, 2018.
One boundary worth naming: this answer is about Delaware. If you inherit property located in another state, or you inherit from someone who lived in a state that still has an inheritance tax, that other state’s rules can reach you even though Delaware’s do not. The classic example is real estate: a vacation home in a state that taxes inheritances is taxed under that state’s rules, not Delaware’s.
The Federal Estate Tax Still Applies to Large Estates
The federal estate tax is a separate system that operates on top of state law. For 2026, the One Big Beautiful Bill Act, signed on July 4, 2025, set the federal estate tax exemption at $15 million per individual.3Internal Revenue Service. What’s New – Estate and Gift Tax An estate worth less than $15 million owes no federal estate tax. Each dollar above $15 million is taxed at 40%.4Office of the Law Revision Counsel. 26 US Code 2010 – Unified Credit Against Estate Tax
The $15 million threshold has no sunset date, which removes the planning uncertainty that surrounded the earlier exemption under the 2017 Tax Cuts and Jobs Act. Beginning in 2027, the exemption will be adjusted upward for inflation.4Office of the Law Revision Counsel. 26 US Code 2010 – Unified Credit Against Estate Tax
For most families, this means no death tax at all. The combination of no Delaware tax and a federal exemption measured in eight figures leaves the vast majority of estates completely untaxed.
Married Couples Can Shelter Up to $30 Million
A married couple can protect up to $30 million from federal estate tax by combining both spouses’ exemptions. The mechanism is called portability. When the first spouse dies, any unused portion of their $15 million exemption can transfer to the surviving spouse.
Portability is not automatic. The executor of the first spouse’s estate must file a federal estate tax return (Form 706) to preserve the unused exemption, even when the estate is far too small to owe any tax.5Internal Revenue Service. Instructions for Form 706 Skip the filing and the surviving spouse loses that extra exemption permanently.
If the deadline is missed, there is a backstop. Under IRS Revenue Procedure 2022-32, an estate can file Form 706 to elect portability as late as the fifth anniversary of the decedent’s death.5Internal Revenue Service. Instructions for Form 706 The late return has to carry a specific notation, so it is worth having a tax professional handle it.
Lifetime Gifts Can Keep an Estate Under the Threshold
If your estate is approaching the federal exemption, gifting during your lifetime moves assets out of the taxable estate. In 2026, you can give up to $19,000 per recipient per year without triggering any gift tax or using any of your $15 million lifetime exemption.6Internal Revenue Service. Frequently Asked Questions on Gift Taxes The number of recipients is unlimited. Married couples who elect gift splitting can give $38,000 per recipient together.
Give more than $19,000 to a single person in a year and the excess chips away at your lifetime exemption. No tax is owed at the time of the gift unless you have already used the full $15 million, but you have to file IRS Form 709 to report it. Overlooked 709 filings create problems for executors years later when the lifetime exemption needs to be reconciled.
Two kinds of payments do not count against the annual limit at all: tuition paid directly to a school and medical bills paid directly to the provider. These exclusions sit alongside the $19,000 annual gift. A grandparent who sends $50,000 straight to a university for a grandchild’s tuition and also writes the grandchild a $19,000 check has used none of the lifetime exemption.
The Bottom Line for Delaware Heirs
If you are inheriting from someone who lived in Delaware, you owe nothing to the state. If the estate is worth less than $15 million, it owes nothing to the federal government either. Larger estates still need federal planning, and surviving spouses need to be aware that preserving the first spouse’s unused exemption requires an active filing. For everyone else, the Delaware answer is as simple as it sounds: no inheritance tax, no estate tax, no state death tax at all.