Bill > HB245

This bill introduces a new provision in Maryland's tax law that allows beneficiaries of limited means to pay inheritance tax through an installment payment plan when inheriting certain real property. The bill defines a "beneficiary of limited means" as an individual with a federal adjusted gross income not exceeding $125,000 for single filers or $250,000 for joint filers, surviving spouses, or heads of household. "Eligible real property" includes the primary residence of the beneficiary or agricultural land that the beneficiary continues to maintain as such. If paying the full inheritance tax would require selling the inherited property, the beneficiary can apply to the register for an installment payment plan. The application must be submitted on a form specified by the register, who will then determine the installment schedule and payment amounts. The bill will take effect on July 1, 2025, and apply to decedents dying on or after that date, providing financial relief for lower-income individuals inheriting property by allowing them to spread out their inheritance tax payments over time.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0245?ys=2025RS