Estate and Inheritance Tax in Georgia 2026
Estate and Inheritance Tax in Georgia 2026
Georgia does not impose a state estate tax, a state inheritance tax, or a state gift tax. The only estate tax that applies to Georgia residents is the federal estate tax, which has a $15,000,000 exemption in 2026. However, Georgia does have a state income tax, which means a final Georgia income tax return must be filed for the year of death. This guide explains what was repealed, what still applies at the federal level, and what Medicaid estate recovery means for Georgia estates.
Georgia Has No State Estate Tax
Georgia eliminated all state estate taxes effective July 1, 2014. The statute reads: "On and after July 1, 2014, there shall be no estate taxes levied by the state and no estate tax returns shall be required."
Georgia previously had an estate tax tied to the federal state death tax credit, which was phased out by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA):
- Deaths in 2002: 25% reduction
- Deaths in 2003: 50% reduction
- Deaths in 2004: 75% reduction
- Deaths in 2005 and later: credit repealed entirely
Unlike states such as Massachusetts and Oregon, Georgia did not "decouple" from the federal system by creating a standalone state estate tax. The result: Georgia has had no effective state estate tax since 2005, and the legislature formally eliminated it in 2014.
No state filing requirement. If no federal estate tax return is required, no Georgia filing is required. No tax waiver is needed to transfer assets from a decedent's name in Georgia.
Source: Georgia Department of Revenue, Estate Tax FAQ (dor.georgia.gov/estate-tax-faq).
Georgia Has No Inheritance Tax
An inheritance tax is different from an estate tax. An estate tax is paid by the estate before assets are distributed. An inheritance tax is paid by the person who receives the inheritance, typically at rates that vary based on the beneficiary's relationship to the deceased.
Georgia has never had an inheritance tax.
As of 2026, only five states impose an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa repealed its inheritance tax effective January 1, 2025.
If you inherit money, property, or accounts from someone who died in Georgia, you owe no Georgia tax on what you receive, regardless of the amount. Inheritances are not considered income for Georgia state tax purposes. If the deceased owned property in a state that does have an inheritance tax, you may owe that state's tax on the property located there, even if you live in Georgia.
Georgia Has No Gift Tax
Georgia does not impose a state gift tax. The only gift tax is federal: the annual exclusion for 2026 is $19,000 per recipient. A person can give up to $19,000 to any number of people each year without filing a gift tax return or reducing their lifetime estate tax exemption. A married couple can jointly give $38,000 per recipient.
Georgia Does Have a State Income Tax
Unlike Texas and Florida, Georgia imposes a graduated state income tax. This means:
- A final Georgia income tax return must be filed for the deceased for the year of death
- If the estate earns income after death, a Georgia fiduciary income tax return may be required
- Distributions from the estate to beneficiaries may have Georgia income tax implications
The final Georgia income tax return covers January 1 of the year of death through the date of death and is due April 15 of the following year.
Federal Estate Tax in 2026
The federal estate tax is the only estate-level tax that could apply to a Georgia resident's estate.
Exemption. The federal estate tax exemption for deaths in 2026 is $15,000,000 per person. This was set by the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025, which amended IRC Section 2010(c)(3).
Rate. The top federal estate tax rate is 40% on amounts above the exemption.
Filing. The filing form is IRS Form 706 (United States Estate Tax Return). It is due 9 months after the date of death. A 6-month extension is available by filing Form 4768, but any estimated tax owed must still be paid by the 9-month deadline.
Portability. A surviving spouse can inherit the deceased spouse's unused federal exemption through a process called portability. To elect portability, the executor must file a federal Form 706, even if no federal estate tax is owed. A simplified late election procedure is available within 5 years of death under Rev. Proc. 2022-32. This effectively gives a married couple a combined $30 million exemption.
Who actually owes it. Fewer than 0.1% of deaths trigger a federal estate tax filing obligation. For the vast majority of Georgia families, the federal estate tax is not a factor.
Federal Income Tax After Death
The estate tax is separate from income tax. Both can apply.
Final Form 1040. The deceased's final federal income tax return covers January 1 of the year of death through the date of death. It is due April 15 of the following year. A 6-month extension is available via Form 4868.
Estate income tax, Form 1041. Once someone dies, the estate becomes a separate taxpayer. If the estate earns more than $600 in income after death (interest, dividends, rent, capital gains from selling assets), it must file Form 1041, the U.S. Income Tax Return for Estates and Trusts. The estate needs its own Employer Identification Number (EIN), separate from the deceased's Social Security number.
Form 56. The executor should file Form 56 with the IRS to notify them of the fiduciary relationship. File it promptly after appointment.
Qualifying Surviving Spouse status. If you were widowed and have a dependent child, you may file using the "Qualifying Surviving Spouse" tax rates for two years after the year of death.
Step-Up in Basis
Under IRC Section 1014, inherited property receives a new cost basis equal to the fair market value at the date of death. This is called the step-up in basis.
How it works. If someone bought stock for $50,000 and it was worth $200,000 when they died, the heir's basis in that stock is $200,000. If the heir sells it for $205,000, they owe capital gains tax on only $5,000, not $155,000.
Georgia is not a community property state. Georgia is an equitable distribution state. Unlike Texas, California, and other community property states, Georgia does not provide a double step-up in basis for both halves of marital property. Only the deceased spouse's share of jointly held property receives a step-up. The surviving spouse's share retains its original basis.
This is an important distinction for Georgia families with appreciated assets. The surviving spouse may face capital gains tax on their original share of jointly held property when they sell.
Tax Forms and Deadlines
| Tax | Form | Deadline | Extension |
|---|---|---|---|
| Federal estate tax | 706 | 9 months after death | 6 months via Form 4768 |
| Final federal income tax | 1040 | April 15 of following year | 6 months via Form 4868 |
| Estate income tax (federal) | 1041 | April 15 of following year | 5.5 months via Form 7004 |
| Final Georgia income tax | GA Form 500 | April 15 of following year | 6 months via extension |
| Georgia state estate tax | None | N/A | Georgia has no state estate tax |
| Fiduciary notification | 56 | Promptly upon appointment | N/A |
Medicaid Estate Recovery (MERP) in Georgia
While Georgia has no estate or inheritance tax, Medicaid estate recovery is a real financial issue for some Georgia families.
Georgia's Medicaid Estate Recovery Program began May 3, 2006 (O.C.G.A. Section 49-4-147.1), as required by federal law (42 U.S.C. Section 1396p). The program recovers costs of long-term care and home/community-based services provided through Medicaid.
Threshold: Estates with a gross value of $25,000 or less are exempt from estate recovery.
Lien rights: Georgia Medicaid has the right to place a lien on all real estate owned by the deceased at the time of death (O.C.G.A. Section 49-4-149).
When recovery is deferred:
- The surviving spouse is living in the home
- Qualified children (disabled, minor, or who lived in the home and provided care) reside in the home
Hardship waiver: Georgia may waive estate recovery in cases of undue hardship.
What MERP can reach: MERP claims apply to the probate estate. Assets that pass outside probate (life insurance to a named beneficiary, retirement accounts with beneficiary designations, jointly held accounts, assets in trust) are generally not subject to MERP recovery.
If the deceased received Medicaid benefits, consult an elder law attorney before distributing any estate assets.
Estate Planning Considerations for Georgia Residents
Because Georgia has no state estate tax, no inheritance tax, and no gift tax, the planning environment is simpler than in many states with low exemption thresholds. A few considerations still matter:
TOD deeds. Georgia now allows transfer-on-death deeds for real property (O.C.G.A. Section 44-17-1 et seq., effective July 1, 2024). Filing a TOD deed means the property transfers to the named beneficiary at death without probate. The deed is revocable during the owner's lifetime. The beneficiary must record an acceptance affidavit within 9 months of death.
Beneficiary designations. Review designations on retirement accounts, life insurance, POD bank accounts, and TOD securities. These designations override the will. An outdated beneficiary designation is one of the most common estate planning mistakes.
Year's Support. Georgia's Year's Support provision (O.C.G.A. Chapter 53-3) allows the surviving spouse and minor children to claim property from the estate for 12 months of support, taking priority over most debts. This is not a tax issue, but it directly affects how much of the estate is available for distribution.
Georgia income tax. Unlike states with no income tax, Georgia requires a final state return. Factor this into the estate administration timeline.
Frequently Asked Questions
Does Georgia have an estate tax?
No. Georgia eliminated all state estate taxes effective July 1, 2014. No standalone state estate tax exists.
Does Georgia have an inheritance tax?
No. Georgia has never had an inheritance tax.
What is the federal estate tax threshold in 2026?
$15,000,000 per person, set by the One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025). The top rate is 40%. Form 706 is due 9 months after death.
Do I need to file a Georgia tax return for the estate?
You must file a final Georgia income tax return (Form 500) for the deceased for the year of death. If the estate earns income, a Georgia fiduciary return may also be required. No Georgia estate tax return is needed.
What to Do Next
If you are an executor or a family member managing the estate of someone who recently died in Georgia, here is the order of operations for the tax side:
- Confirm that no state estate tax returns are needed. Georgia has no state estate tax, no inheritance tax, and no gift tax.
- File the final Georgia income tax return (Form 500) for the year of death.
- If the estate exceeds $15 million, contact a Georgia estate attorney and CPA immediately. Form 706 is due 9 months after death.
- If the deceased received Medicaid benefits, understand what the state may claim before distributing assets.
- Obtain an EIN for the estate before any estate income is received after death.
- File the final federal Form 1040 for the year of death.
For the full sequence of tasks after a death, see the complete guide to what to do when someone dies in Georgia.
Kaira organizes every step for your state — deadlines, forms, and next actions — so nothing gets missed. See how it works.
This guide reflects Georgia and federal estate tax law as of April 2026, including the One Big Beautiful Bill Act (P.L. 119-21). Tax laws change. For estates near the $15 million federal threshold or with complex tax situations, consult a Georgia-licensed estate planning attorney and a CPA.
Sources: Georgia Department of Revenue, Estate Tax FAQ (dor.georgia.gov/estate-tax-faq); O.C.G.A. Section 49-4-147.1 (Medicaid Estate Recovery); IRC Section 2010(c)(3); IRS Publication 559; ssa.gov