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HB 1153

Maryland Estate Tax - Unified Credit

2025 Regular Session Introduced by Chris Adams and 3 co-sponsors

Maryland bill aligns state estate tax exemption with federal level, raising threshold from $5.25M to $13.61M and reducing taxes on mid-size estates.

Hearing 2/20 at 1:00 p.m.
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Bill Summary · HB 1153

Legislative bill overview

HB 1153 proposes to align Maryland's estate tax unified credit with the federal estate tax unified credit. Currently, Maryland has a significantly lower estate tax exemption ($5.25 million) compared to the federal level ($13.61 million in 2024), meaning more Maryland estates are subject to state taxation. This bill would increase Maryland's exemption threshold to match federal levels, reducing the number of estates subject to state estate taxes.

Why is this important

Estate taxes directly affect how much wealth families and business owners can pass to heirs. Maryland currently taxes estates that fall below the federal threshold, creating a double tax burden for some Maryland residents. Aligning with federal law would reduce state tax liability for mid-sized estates and could affect state revenue by potentially tens of millions of dollars annually, depending on economic conditions and how many estates are currently affected.

Potential points of contention

  • State revenue loss: Increasing the exemption reduces estate tax collections, which funds state programs; sponsors must address how this revenue gap would be covered
  • Wealth concentration concerns: Critics may argue higher exemptions primarily benefit wealthy families and exacerbate wealth inequality
  • Federal-state coordination complexity: Matching a federal credit that adjusts periodically (sunset provisions in current law) creates ongoing alignment challenges and potential future legislative needs

Compiled from official sources — confirm details with the bill’s official record.

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