Does Missouri Have Inheritance Tax? Free Missouri Tax Calculator
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Missouri has no inheritance tax, so beneficiaries generally pay no state tax on what they inherit.
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Missouri has no estate tax, but federal estate tax may apply to large estates.
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Inherited cash generally isn’t taxable income, but income earned afterward may be.
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Selling inherited assets can trigger capital gains tax on the increase in value.
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Inherited retirement accounts may be taxable, depending on the account and beneficiary.
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Good records help prevent tax issues, especially the asset’s value at death.
Missouri’s inheritance tax rules determine whether inherited assets are subject to state taxation after a person’s death.
The state’s tax treatment of inherited assets has changed over time as Missouri’s estate and inheritance tax laws have been revised.
Is A Cash Inheritance Taxable?
Inheriting cash usually isn’t taxable income, but certain situations can trigger taxes. Find out what the IRS taxes, what you don’t have to report, and when you could owe money.
Find Out If You’ll Owe TaxState Estate & Inheritance Tax Rules by State
Which states tax an estate before it’s distributed, tax the beneficiary who receives it, both, or neither.
Hover or tap a state to see details
Tax details
Estate breakdown
Taxable income (regular tax)
Estimated tax breakdown
Tax rate
Final amount you keep
Missouri State Inheritance Tax
Missouri does not impose an inheritance tax.
Inheritance tax is a state tax on amounts received by heirs or beneficiaries paid by the recipient of the inheritance.
Some states have such a tax with graduated rates by kinship, but Missouri levies none.
Inherited assets pass to heirs without any state inheritance tax withholding.
If the heir lives in another state that imposes an inheritance tax, that state’s rules could potentially apply to assets located within its jurisdiction.
But any income generated by the inherited assets, such as
- Dividends
- Interest, or
- Rents, is taxable in the beneficiary’s Missouri income tax return just like any other income.
Who Pays Federal Estate Tax?
The deceased person’s estate via its executor or personal representative pays U.S. federal estate tax if the estate exceeds the exemption.
As of updating this article, the federal exemption is $15 million.
Estates below this are not subject to federal estate tax.
If tax is due, the IRS Form 706 is filed by the estate 9 months after death, with a 6-month extension available. The federal rate is up to 40% on amounts above the exemption.
How Much Inheritance Is Tax-Free?
Find out how much you can inherit without paying tax—and what rules may apply to your inheritance.
See Your Tax-Free Amount →Does Missouri Have State Estate Tax?
No, similarly to inheritance, Missouri does not have an estate tax.
Estate administration in Missouri still follows probate rules, allowances for a surviving spouse or minor children, small‐estate affidavits, etc., but no separate state death tax is computed.
The only death taxes that may apply to Missourians are the federal estate tax if the estate exceeds $15 million and any estate/inheritance taxes of other states where the decedent owned property.
Comparison: Inheritance Tax vs. Estate Tax
| Aspect | Inheritance Tax | Estate Tax |
|---|---|---|
| Definition | Tax on money or property received by heirs or beneficiaries. | Tax on the deceased person’s entire estate before assets are distributed. |
| Missouri law | None. Missouri does not tax inheritances. | None. Missouri does not impose estate tax for current deaths. M Missouri Department of Revenue |
| Federal law | No federal inheritance tax. | Federal estate tax may apply to very large estates above the exemption limit. I Internal Revenue Service |
| Who pays | The person receiving the inheritance (in states that have this tax). | The estate itself, usually handled by the executor. |
| Rates (if applicable) | Other states: varies. Missouri: 0%. | Federal: up to 40% above exemption. Missouri: 0%. |
| Exemptions | Often based on relationship to the deceased (spouse/children may receive exemptions in some states). | Based mainly on estate size and federal deductions. |
| Example | Missouri resident inherits $100,000 → $0 Missouri inheritance tax. | Missouri estate worth $10 million → $0 Missouri estate tax; federal rules apply only if above the federal threshold. I Internal Revenue Service +1 |
Federal Tax Rules on Inheritance
Most inherited assets are not subject to federal income tax when received. The table below shows when taxes may apply at inheritance or later.
| Inherited Asset | Tax When You Receive It? | Possible Tax Later? |
|---|---|---|
| Cash | Usually no federal income tax | Interest earned afterward is taxable. |
| House / Real Estate | Usually no | Capital gains tax may apply if sold for a profit. |
| Stocks / Investments | Usually no | Capital gains tax may apply after sale. |
| Traditional IRA / 401(k) | Usually not immediately | Withdrawals are generally taxable. |
| Roth IRA | Usually no | Often tax-free if rules are met. |
| Life Insurance | Usually no | Exceptions may apply. |
| Rental Property | Usually no | Rental income is taxable after inheritance. |
| Large Estate | N/A | Estate itself may owe federal estate tax before distribution. |
Tax outcomes can vary based on the asset type, state laws, and the beneficiary’s situation. For complex estates or large inheritances, I would recommend opting for professional tax advice.
How are Different Inherited Assets Taxed?
Inherited assets are treated differently under federal and Missouri tax rules. The table below summarizes the key tax outcomes for common asset types:
| Asset | Tax When Inherited? | Tax Later? | Missouri Treatment |
|---|---|---|---|
| Cash / Bank Account | No federal income tax on inherited amount | Interest earned afterward is taxable. | Interest is taxable; inherited amount is not. |
| Home / Land | Usually no tax at receipt Basis generally resets to FMV at death. | Capital gains may apply if sold above inherited basis; rental income is taxable. | Rental income taxable; capital gain rules depend on Missouri law. |
| Stocks / Securities | Usually no tax at receipt Basis generally resets to FMV at death. | Gains after inheritance may be taxable; dividends are taxable. | Dividends taxable; Missouri capital gain rules may apply. |
| Traditional IRA / 401(k) | No tax at inheritance itself | Withdrawals are generally taxable income. | Withdrawals generally taxable as Missouri income. |
| Roth IRA | Usually no tax at inheritance | Qualified withdrawals generally tax-free. | Generally follows federal treatment. |
Each of these asset categories follows the general principle:
- Inheritance itself triggers no immediate tax, but
- Subsequent income or realized gains are subject to normal income or capital gains tax rules.
How Are Inherited Stocks Taxed When Sold?
Find out how inherited stocks are taxed and how the step-up in basis may reduce your tax bill.
See How Much Tax You Could OweAre Family Members Exempted Too?
Because Missouri has no inheritance tax, there are no tax rate differences or exemptions by relationship.
In an inheritance-tax state, the heir’s relationship to the decedent would affect the tax rate.
- Spouses and children usually pay less or nothing; siblings more
- In Missouri today, all heirs are treated the same (i.e., none owe inheritance tax).
But, Unrelated to taxes, probate law still affords some protections to close family: e.g., a surviving spouse and minor children have statutory rights to family allowances and homesteads in the estate.
Missouri Inheritance Tax FAQs
No. Missouri has no inheritance tax or estate tax.
No. Inherited cash, stocks, and property are not taxable income. Income earned from inherited assets, such as interest, dividends, or rent, may be taxable.
Only distributions are taxable. Traditional IRA and 401(k) withdrawals are generally taxed as income. Qualified Roth IRA withdrawals are generally tax free.
No. Federal estate tax is paid by the estate, not the beneficiary. It only applies to estates above the federal exemption amount.
Inherited assets generally receive a stepped up basis at death. Any gain after that may be subject to capital gains tax.
Another state’s estate or inheritance tax may apply to property located there. Missouri does not impose an additional tax.
The executor files the decedent’s final tax returns and any required estate returns. Beneficiaries report any taxable income they receive.
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