Does Florida Have an Inheritance Tax?
When people begin thinking about estate planning, one of the most common questions is whether taxes will apply when assets are passed on to loved ones. A frequent concern is whether Florida has an inheritance tax. Watch our video on this topic here.
What Is an Inheritance Tax?
An inheritance tax is a tax that a person pays when they receive money or property after someone passes away. In states that impose an inheritance tax, the beneficiary may be responsible for paying the tax based on what they inherit.
Does Florida Have an Inheritance Tax?
Some states have inheritance taxes, while some states like Florida do not. Because of this, most Floridians do not have to worry about paying inheritance taxes at all. This makes Florida a particularly favorable state for passing assets to family members and loved ones.
This is why location matters. Not every state follows the same rules. Some states do impose inheritance taxes, which means that where you live—or where certain assets are located—can significantly affect what your beneficiaries receive.
Florida is one of the most tax-friendly states when it comes to passing wealth to the next generation. While inheritance taxes are not a concern for most Floridians, proper planning still matters to ensure your assets are distributed efficiently and according to your wishes.
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If someone owns a home in Florida and wants to make things easier for their loved ones after they pass away, there is a powerful planning tool that can accomplish that. It is called the Enhanced Life Estate Deed, more commonly known as a “Ladybird” Deed, and for many Florida homeowners, it truly feels like one of Florida’s best kept secrets. Why? With this Ladybird Deed, your home can skip the probate court process . Let's take a closer to look to see how this special, Florida specific deed can save your loved ones thousands in legal fees and court costs. (Click link for part 1 of Ladybird Deeds here and part 2 of Ladybird Deeds here ) Like the most common type of ownership, fee simple, when a homeowner is alive, a Ladybird Deed allows them to keep complete possession and control of their property. The homeowner with this Ladybird deed can do the same things as a normal owner with their property while they are alive. Live in it, lease it, sell it, take out a home equity line of credit, second mortgage, whatever they choose. The difference with this deed, however, is that the Florida homeowner is now giving themselves a life estate with all of the above-mentioned rights of normal ownership, and in the deed, they are listing who they would like to inherit their property when they pass away. If drafted properly, with the correct language and recorded with the right governmental office, this legal document will be recognized by the Florida government and its counties. Then, the homeowner's wishes of who will receive their home will be honored by the government when this pass away. This applies to ALL Florida homeowners, even if you are not the only owner of the property. You can use a Ladybird deed to transfer the ownership of the portion you own to whomever you want, without a probate court intervening! Probate in Florida can be time-consuming, public, and expensive. Even when there is only one home involved, families often spend thousands of dollars in attorney’s fees and court costs just to transfer title. In addition to the expense, probate can take months to complete, which can create stress and delays during an already difficult time. With a properly drafted Ladybird Deed, the process is dramatically simpler. When the life tenant passes away, the beneficiary typically only needs to obtain a certified copy of the death certificate and record it in the public records of the county where the property is located. Once recorded, the property is officially in the beneficiary’s name. There is no need to open a probate case just to transfer the home. The key part of a ladybird deed is that the life tenant/owner 1) can name whomever they want to own the property after they pass away , and 2) when the life tenant/homeowner passes away, then the property automatically transfers to the beneficiary they named in the deed without going through probate. Those are two main benefits of this deed, however, a nother reason the Ladybird Deed is so powerful in Florida is that the original owner maintains homestead protections. In certain circumstances, it may also help avoid Medicaid estate recovery, which makes it an important planning consideration for some families. That said, a Ladybird Deed is not the right solution for everyone. If you own multiple properties, have a blended family, want structured distributions, or need broader asset protection planning, a revocable trust or more comprehensive estate plan may be more appropriate. The key is making sure the deed is drafted correctly and fits within your overall estate planning goals. For many Florida homeowners, however, the Ladybird Deed offers a simple way to avoid probate and spare loved ones unnecessary expense and delay. When used properly, that simplicity can make all the difference.
When planning for your estate, it’s important to understand how taxes may or may not, affect your legacy. If you live in Florida, the average Florida resident does not need to be concerned with estate taxes. First reason being that the State of Florida does not impose a state estate tax on its residents. This means that when a Floridian passes away, their estate is not taxed at the state level in Florida. Whether your estate includes real estate, investments, or other valuable assets, the Florida government will not levy an estate tax on the transfer of those assets to your beneficiaries or heirs. See also our article on inheritance tax here . Even though Florida itself does not tax estates, the United States government does have an estate tax for who many would consider "high net-worth" individuals. The U.S. federal estate tax applies to the transfer of a person's assets at death — but only the part of that deceased person's estate that exceeds the value threshold. This threshold is known as the "federal estate tax exemption," and the exemption amount has been increasing each year for the last several years. Due to the recent One, Big, Beautiful Bill, for the year 2026, the federal estate tax exemption has been set at $15 million per individual. That means if the total value of someone’s estate is $15 million or less, no federal estate tax is owed. Estates are subject to federal tax only on the amount that exceeds $15 million. For married couples, the exemption can effectively double (up to $30 million) if proper planning — such as portability of unused exemptions — is used. If an estate does exceed the $15 million exemption, only the value above that amount is taxed. The federal estate tax is progressive and can reach rates up to forty percent (40%) on amounts over the exemption threshold. For example, if someone in Florida passes away in 2026 with an estate valued at $20 million, then the federal exemption is $15 million and the taxable amount is $5 million, as that is the amount above the exemption. What this means is that most Floridians will not owe federal estate tax, as the last several years the exemption amounts have been high enough that the vast majority of estates fall below the threshold. This framework helps clarify how estate taxes work in Florida for 2026, but estate tax law can be complex and subject to change. For personalized advice — especially if your estate approaches or exceeds the exemption threshold — it’s a good idea to consult a qualified estate planning attorney or tax professional.
