Does Virginia Have an Inheritance Tax? A 2026 Answer for Heirs

Updated April 28, 2026 by David Mount, REALTOR® & COO, The Redux Group of eXp Realty | Northern Virginia

This guide is general educational content, not tax or legal advice. Tax law changes. For guidance on your specific situation, consult a qualified CPA and Virginia estate attorney.

If you’ve recently inherited property from a loved one in Virginia — whether a home, a bank account, retirement assets, or personal belongings — one of your first questions is almost always about taxes. The good news is that Virginia is one of the most tax-friendly states in the country for heirs. There is no state inheritance tax, no state estate tax, and no state-level “death tax” of any kind. This guide walks through exactly what you do and do not owe.

The Clean Answer: No State Death Tax in Virginia

To be precise about terminology, there are two kinds of state-level death taxes that some U.S. states impose:

• Estate tax — a tax on the estate itself, paid by the estate before assets are distributed to heirs.
• Inheritance tax — a tax on what each heir receives, paid by the heir.

Virginia imposes neither. The Commonwealth has no estate tax and no inheritance tax. Heirs in Fairfax, Loudoun, Arlington, Prince William, Alexandria, Falls Church, and everywhere else in Virginia owe zero state tax simply because someone died and left them something.

This puts Virginia in the majority of U.S. states. As of 2026, only six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) impose an inheritance tax, and 12 states plus Washington D.C. impose a state estate tax. Virginia is not on either list.

Virginia’s 2007 Estate Tax Repeal: What Happened

Virginia did, at one time, have an estate tax. But it was structured as a “pickup tax” or “sponge tax” — meaning it was tied to the federal estate tax and equaled the federal credit allowed for state death taxes. Virginia received this credit money without imposing a separate burden on Virginia estates.

When Congress phased out the federal credit for state death taxes (a change that took full effect in 2005), Virginia’s pickup tax was effectively zeroed out. The General Assembly formalized the repeal in 2007. Since July 1, 2007, no Virginia estate tax has been due on any death.

This means that even very large Virginia estates — $5 million, $10 million, $50 million — pay nothing to the Commonwealth in death taxes. Federal estate tax is a separate question, addressed below.

Federal Estate Tax (Separate, and Rare)

The federal government imposes its own estate tax on very large estates, but the threshold is high enough that the vast majority of estates owe nothing. Beginning January 1, 2026, the federal estate and gift tax exemption is $15 million per individual ($30 million per married couple), and it’s now permanent with annual inflation adjustments.

What that means in practice: a Northern Virginia estate worth $4 million owes zero federal estate tax. A married couple’s estate worth $25 million owes zero federal estate tax. Only estates exceeding the $15M (single) or $30M (couple) threshold pay any federal estate tax at all, and even then, only on the amount above the threshold.

If you’re concerned the estate may be near or above $15 million, talk to a Virginia estate attorney before doing anything with the home or other major assets. The federal estate tax filing (Form 706) and any estate tax due is handled at the federal level by the personal representative.

Virginia’s Small Probate Tax: $0.10 per $100

The one Virginia tax most families encounter when administering an estate is the probate tax under Va. Code §58.1-1712. This is not an inheritance tax or an estate tax — it’s a court fee charged when a personal representative qualifies to administer a probate estate. The math is simple:

• $0.10 per $100 of estate value
• No probate tax due if the total estate is under $15,000

On a $600,000 home that goes through probate, the probate tax is $600. On a $1.5 million estate, it’s $1,500. The fee is paid one time, at qualification, and is collected by the Circuit Court Clerk’s Office along with recording fees. There’s no Virginia tax on the inheritance itself — just this small administrative court fee.

If the home was held in a trust, owned jointly with right of survivorship, or had a transfer-on-death (TOD) deed, no probate is required and no probate tax is due. See our Trust Sale vs Probate Sale comparison for the full breakdown.

Other Virginia Taxes When You Sell an Inherited Home

Even though Virginia doesn’t tax the inheritance itself, you may encounter Virginia-specific charges when you actually sell the inherited home. Most of these are normal real estate transaction costs, not death-related taxes:

Virginia grantor’s tax (recordation tax) on the deed. When the home sells and the deed is recorded, Virginia charges a recordation tax. As of 2026, the state grantor’s tax is $0.50 per $500 of sale price (with the locality often adding a smaller amount). On a $750,000 sale, that’s about $750 to the state plus the local share. This is a transaction tax paid at closing, traditionally by the seller.

Federal capital gains tax. Federal, not state. Inherited property gets a stepped-up basis equal to fair market value on the date of death (IRC §1014), so capital gains tax usually applies only to appreciation that occurs after the date of death — often small or zero if you sell relatively soon. See our capital gains and stepped-up basis guide for details.

No Virginia capital gains tax exemption. Virginia does tax capital gains as ordinary income, but only on the gain above the stepped-up basis. If you sell for the date-of-death value, your taxable gain is essentially zero, so Virginia capital gains tax is also zero.

What About Other States Where the Deceased Owned Property?

If your loved one was a Virginia resident but also owned property in another state, you may need to consider that other state’s tax rules separately. For example: a Virginia resident who owned a vacation home in Maryland, Pennsylvania, or New Jersey may trigger inheritance or estate tax in those states even though Virginia doesn’t impose one.

Most often this affects inherited beach homes (Delaware and the Outer Banks of North Carolina don’t have inheritance tax, but Maryland’s Eastern Shore does), vacation properties in inheritance-tax states, and out-of-state retirement homes. If the deceased held property outside Virginia, talk to an estate attorney about which state’s laws apply.

Frequently Asked Questions

Does Virginia tax inheritances at all?

No. Virginia has no inheritance tax. Heirs receive what they inherit free of state tax in Virginia.

Does Virginia have an estate tax?

No. Virginia’s estate tax was effectively repealed in 2007. Even very large Virginia estates owe nothing to the Commonwealth in death taxes.

Will I owe federal estate tax on my inheritance?

Almost certainly not. The 2026 federal estate tax exemption is $15 million per individual ($30 million per married couple). Only estates exceeding these thresholds pay any federal estate tax.

What is the Virginia probate tax and is it the same as an inheritance tax?

No, it’s different. The Virginia probate tax (Va. Code §58.1-1712) is a small court fee of $0.10 per $100 of estate value, paid one time when the personal representative qualifies. It is not a tax on the inheritance itself. Estates under $15,000 owe no probate tax.

If Virginia has no inheritance tax, why does my estate attorney mention “tax planning”?

Because federal estate tax, federal income tax, and state capital-gains-on-sale tax are all still in play, even though Virginia death taxes are not. Tax planning around an inheritance focuses on stepped-up basis, capital gains timing, and (for very large estates) federal estate tax exemption strategies.

What about gift tax in Virginia?

Virginia has no state gift tax. Federal gift tax exists but uses the same $15 million lifetime exemption as estate tax (combined). For most families, gift tax is irrelevant.

Does Virginia tax life insurance proceeds?

No. Life insurance proceeds paid to a named beneficiary pass outside the estate and are not subject to Virginia tax. They may count toward the federal estate tax threshold if the deceased owned the policy, but only for very large estates.

Does Virginia tax retirement accounts I inherit?

Virginia doesn’t impose an inheritance tax on the receipt. However, distributions you take from inherited traditional IRAs, 401(k)s, and similar accounts are taxable as ordinary income at both the federal and Virginia level when you withdraw the money. Roth accounts are usually tax-free. A CPA can model your specific situation.

What if I inherit property in Virginia but I live in another state?

Virginia’s lack of inheritance tax applies regardless of where you live. You won’t owe Virginia tax on the inheritance. Your home state may or may not impose its own tax on inheritances received from out-of-state — check with a CPA in your state.

Get Help With Your Inherited Virginia Home

If you’ve inherited a home in Northern Virginia and want to talk through your options, David Mount can walk you through the entire process — pricing, prep, sale, and timing — alongside the Virginia tax considerations. David is well-versed in the procedures under Title 64.2 of the Code of Virginia and works with experienced Northern Virginia estate attorneys when legal questions arise. Call (571) 946-8418 or email david.mount@thereduxgroup.com for a confidential, no-pressure consultation.

Related Resources

• Selling an Inherited Home in Northern Virginia: Estate Sale Guide (2026)
• Capital Gains on Inherited Property in Virginia: How the Stepped-Up Basis Saves You Money
• Trust Sale vs Probate Sale in Virginia: Which Path Is Right for Your Inherited Home?
• Selling a Home Held in a Trust in Virginia: Step-by-Step Guide for Successor Trustees
• How Long Does Probate Take in Fairfax County, VA? (2026 Timeline)