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Do You Owe Inheritance Tax in Maryland?
We buy houses in Maryland as-is, including inherited properties, which often come with questions about taxes.
According to Nolo, Maryland is one of only six states that still imposes an inheritance tax. But here’s the good news: most close family members are completely exempt. That means if you inherited the property from a spouse, parent, grandparent, child, or sibling, you won’t owe the state a single cent in inheritance tax.
If the person who left you the home was a more distant relative—or not related at all—a 10% tax could apply to the property's value at the time of their passing. But even then, this is separate from capital gains and usually paid before the home is sold.
Understanding these tax implications is a key part of selling an inherited house in Maryland, especially if you're aiming to avoid unexpected expenses or delays.
The Process of Selling Inherited Property in Maryland
Selling an inherited home in Maryland can be straightforward. Here's how our home-buying process works:
Step 1: Resolve Probate and Confirm Ownership
Before selling, you may need to go through probate, especially if the estate is complex. If the home is part of a larger estate, you’ll need to confirm clear ownership. In Maryland, the probate process can take months for larger estates, but small estates under $50,000 have a faster, simplified route. Once you have a clear title, you’re ready to move forward.
Step 2: Get an Appraisal and Understand the Value
Getting an accurate appraisal of the property is crucial for determining the sale price. If you’re selling quickly, working with a cash buyer eliminates the need for appraisals, inspections, or repairs—making the process faster and less stressful.
Step 3: Choose Your Selling Method
You can either list with a realtor or sell to a cash buyer. Traditional sales can take time, involve repairs, and incur hefty real estate agent commissions. However, working with a trusted local cash buyer like ACE HomeBuyers allows you to close in as little as 7-10 days.
Step 4: Understand Taxes and Legal Considerations
Selling an inherited property may come with inheritance tax or capital gains tax considerations. However, many heirs in Maryland are exempt from inheritance tax, and the stepped-up basis can minimize capital gains tax.
Step 5: Close the Sale Quickly and Confidently
Once you agree on a fair price, you can choose your closing date. We provide a fair cash offer based on the home’s current condition, and we cover all fees and closing costs.
If your loved one recently moved into care or assisted living before passing, this scenario can affect the home's value and tax implications.
What Our Customers Are Saying
See why many people recommend us to be your local Maryland homebuyers.
Brett is an exceptional man with intelligence, honesty, foresight, vision and best f all LOYALTY! I have been a Realtor since 1998 and have never been fond of the investment buying process until Brett! I love working with him as his Realtor. I am so honored that he chose myself to do this job and I am so excited for the years to come!
Michele Michael
I am so happy to have found Tyler and Brett at ACE. In a world where everyone is out for themselves, these men are both a breath of fresh air. They are upfront and honest and made our transaction so seamless and easy. Very easy to work with and I will 100% recommend them to others and do business with them again, given the opportunity.
Olga Michaelidis
Calling Ace Homebuyers was the best decision I made when looking to help sell my parent’s house. Tyler and Brett are not only very professional, but they made the process super easy. They took care of everything. After my Dad passed away, we need to move my mom closer to my siblings. This required us to sell the house that my parents spent 41 years in.
Jeffrey Mogus
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Fill out this form to get your no-obligation all cash offer started!
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What Happens If You Hold Onto the Property Too Long?
There’s nothing wrong with taking time to grieve. But holding onto an inherited home for too long can come with unexpected financial consequences—especially if the house sits vacant.
That’s why many Maryland residents who inherit a home look to cash buyers like ACE HomeBuyers for a fast way to sell. Learn more about us here!
In Maryland, even an empty home comes with bills: property taxes, utilities, insurance, and maintenance.
In contrast, selling sooner gives you control, clarity, and often, better financial results.
Neglect can lead to damage, which reduces the property’s value over time. The market can shift. Family members can change their minds. And if the home appreciates significantly while you wait, capital gains tax becomes a bigger concern.
Plus, the emotional burden grows heavier the longer the house stays in your hands. Instead of giving you closure, it may hold you back.
The stress multiplies if you’re selling a Maryland home from out of state. It walks through how to sell confidently without having to travel or manage the property yourself.
How a Cash Buyer Can Simplify the Tax Process
When you’re already dealing with legal documents, family logistics, and the emotions of loss, the last thing you want is a complex, drawn-out home sale. That’s where working with a local, professional cash buyer can make all the difference. A cash buyer can:
- Purchase your home as-is—no cleaning, clearing, or fixing
- Walk you through timelines that reduce tax exposure
- Work directly with your title company or probate attorney
- Avoid listing delays or financing fallout
- Offer a flexible closing schedule that works for your family
Best of all, many reputable buyers in Maryland are familiar with estate sales, probate properties, and capital gains tax rules, making them a reliable partner in an otherwise overwhelming process.
FAQs About Selling an Inherited Home in Maryland
1. Do I have to pay taxes when I sell an inherited house in Maryland?
Not always. Most heirs who are close relatives are exempt from Maryland inheritance tax, and capital gains tax only applies if the property sells for more than its stepped-up value after inheritance.
2. What is a “stepped-up basis” and how does it affect my taxes?
A stepped-up basis means the IRS resets the home’s value to what it was worth when your loved one passed away. This often reduces or eliminates any taxable gains if you sell the property soon after inheriting it.
3. What happens if I wait too long to sell?
If the property increases in value after you inherit it, you could owe more in capital gains tax. Holding onto the home also adds financial pressure from maintenance, property taxes, and insurance.
4. Can I sell before probate is complete?
Sometimes, yes. If you’re the executor or the estate qualifies for Maryland’s small estate process, you may be able to sell during or shortly after probate by working with a title company.
5. Do cash buyers understand how taxes work with inherited properties?
Reputable Maryland cash buyers are familiar with probate and inheritance processes. While they don’t offer tax advice, they work with title companies to ensure everything is handled properly and legally.
Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
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Make Peace with the Process and the Property
Taxes feel like one more weight when you’re already carrying so much. But most heirs are relieved to learn that selling an inherited home in Maryland doesn’t come with the massive tax bill they feared.
At ACE HomeBuyers, we’ve worked with families across Maryland to sell inherited houses with zero pressure and full transparency. Contact us today to request your free, fair cash offer and start your next chapter with peace of mind.