Written by: Attorney Scott Stork
No. Missouri has not imposed an inheritance tax on decedents dying since 1981. Missouri later imposed a separate estate tax tied to the federal state-death-tax credit, but that tax ceased to apply to deaths occurring on or after January 1, 2005. If you inherit money or property from someone who died a Missouri resident, you owe the state nothing on that inheritance, regardless of how much it's worth or how closely you were related to the person who left it to you. Missouri also has no separate state estate tax. This puts Missouri among the more favorable states in the country for families settling an estate.
That said, "no state tax" isn't the same as "no tax questions at all," and a few situations are still worth understanding.
Key takeaways
Missouri has no inheritance tax and no separate state estate tax. Neither the estate nor the person inheriting owes Missouri anything on the inheritance itself.
The federal estate tax still exists, but it only applies to estates above $15 million per individual as of 2026, which excludes the vast majority of Missouri families.
Inherited property generally receives a step-up in basis, which can reduce or eliminate capital gains tax if it's later sold.
Inheriting money or property is not typically counted as taxable income, though income generated afterward, or distributions from an inherited retirement account, can be.
If you inherit from someone who lived in a different state, that state's inheritance tax rules, if any, could still apply.
Why Missouri has no inheritance tax
Missouri's inheritance tax was tied to a federal tax credit that Congress phased out through legislation passed in 2001. Once that federal credit disappeared, Missouri's own tax effectively dropped to zero, and it's remained inactive since January 1, 2005. The statute technically still exists on the books, but it has no practical effect today.
The federal estate tax: still relevant for very few
The federal government does levy an estate tax, but it applies only to estates exceeding a substantial exemption, currently $15 million per individual as of 2026, or effectively double that for a married couple through a mechanism called portability. This threshold is set at a level that excludes the overwhelming majority of Missouri families, though it's worth confirming your exposure directly if your estate includes significant business interests, real estate holdings, or investment accounts.
What can still create a tax bill for an heir
Inherited retirement accounts. Withdrawals from inherited traditional IRAs, 401(k)s, and other pre-tax retirement accounts are generally taxable as ordinary income. Different rules can apply to inherited Roth accounts and to amounts representing after-tax basis .
Selling inherited property later. Inherited real estate and investments generally receive a step-up in basis, meaning the asset's value resets to its fair market value at the date of death rather than what the original owner paid for it. This usually reduces or eliminates capital gains tax if you sell soon after inheriting, though gains that accumulate after you inherit it are still taxable.
Inheriting from someone who lived elsewhere. A handful of states still impose their own inheritance tax, and in some cases, that tax can apply to an heir even if the heir lives in Missouri, depending on where the deceased person actually resided.
Why this doesn't mean estate planning is unnecessary
The absence of a state inheritance or estate tax sometimes leads families to assume there's nothing left to plan for. That's not quite right. Missouri's favorable tax treatment addresses one specific concern, taxes owed directly on the inheritance, but it says nothing about probate, incapacity planning, guardian designations, or making sure your assets actually go where you intend. Those are separate problems that tax-free inheritance doesn't solve on its own.
Frequently asked questions
Do I owe Missouri tax on money I inherit? No. Missouri has not imposed an inheritance tax on decedents dying since 1981. Missouri later imposed a separate estate tax tied to the federal state-death-tax credit, but that tax ceased to apply to deaths occurring on or after January 1, 2005
Does Missouri have an estate tax? No. Missouri's state estate tax has been inactive since 2005, following changes to federal tax law.
Will I owe federal estate tax on an inheritance? Potentially. For a decedent dying in 2026, the federal basic exclusion amount is $15 million per individual, although the actual estate-tax calculation can depend on deductions, prior taxable gifts, available credits, and portability.
Is money from an inherited retirement account taxable? Generally yes, as ordinary income when it's withdrawn, even though Missouri has no separate inheritance tax on the inheritance itself.
If you're settling an estate and want to understand what taxes, if any, actually apply to your situation, call Polaris Estate Planning & Elder Law for a conversation.
Ready to secure your family’s future or have a question about getting started? Call Polaris Estate Planning and Elder Law today.
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