Inheritance tax worksheet
Kentucky Inheritance Tax Calculator
Kentucky changed its inheritance-tax rules in 2026. Qualifying nieces and nephews are now Class A and exempt for deaths on or after January 1, 2026. Deaths from July 1 also use longer payment and discount periods.
Updated 5 primary sources citedEditorial policy
Kentucky inheritance tax: one beneficiary
Who this covers and what to enter
For outright distributions from Kentucky-resident decedents in 2026 or 2027. Enter the prepared distributive share before the beneficiary exemption; the tax table already includes it.
Your estimate
Needs your figuresCalculated- Estimated tax after selected discount
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- Exemption already included in calculation
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- Tax before early-payment discount
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- Conditional 5% discount
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- Remaining principal after payments
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- Payments above estimated principal
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Payment differences exclude interest and penalties. The discount requires timely qualifying payment; a comparison is not a payment or filing.
Reviewed October 1, 2026 against current KRS 140.070, KRS 140.080 and KRS 140.210. The older 2021 agency guide does not reflect these changes.
Nieces and nephews moved into exempt Class A
The 2026 amendment includes a nephew, niece, half-nephew or half-niece in Class A. Its legislative note applies the change to estates of people who died on or after January 1, 2026, even though the law's effective date was April 27. Amended classification and application date.
A qualifying niece receiving a $100,000 outright share from a January 2026 decedent now owes zero under this classification. Applying the old Class B table would produce $8,960. The calculator explicitly offers the current niece/nephew category.
Do not extend that category to every person called a niece or nephew socially. Great-nieces, great-nephews and nieces/nephews by marriage require their own legal classification. The current statute names the covered relationship; the older agency guide explains those distinctions but retains the superseded tax class for qualifying nieces/nephews.
Class B and C exemptions remain different
Class B now includes the specified daughter-in-law, son-in-law, aunt, uncle and qualifying great-grandchild. Class C covers other nonexempt recipients. Current categories and marginal rates.
Class B has a $1,000 exemption and Class C a $500 exemption, applied against the lowest brackets. The published tax table already includes those exemptions; entering a share after subtracting the exemption would count it twice. Class A's entire inheritable interest is exempt. Exemption statute.
| Prepared share | Class B tax | Class C tax |
|---|---|---|
| $10,000 | $360 | $570 |
| $20,000 | $860 | $1,370 |
| $60,000 | $4,160 | $6,270 |
| $100,000 | $8,960 | $12,670 |
| $200,000 | $22,960 | $28,670 |
These calculated examples are before any early-payment discount and assume an ordinary resident transfer. Rate schedule · Exemptions.
July deaths have a 14-month discount window
| 2026 death date | 5% discount if paid within | Statutory payment period |
|---|---|---|
| January 1–June 30 | 9 months | 18 months |
| July 1–December 31 | 14 months | 24 months |
The date control selects the appropriate window. The discount selection is a conditional comparison: it assumes an eligible payment is actually made within that window. A $12,670 Class C tax has a $633.50 discount and $12,036.50 discounted liability. Amended payment and discount law.
A payment amount entered below the deadline is not proof that every condition is met. Interest, penalties, installment elections and calendar-day filing details require the actual return and payment record. The worksheet reports principal only.
Nonresident exemptions are apportioned
This calculator uses the resident schedule. For a nonresident, KRS 140.080 apportions the exemption based on property taxable by Kentucky compared with the whole property transferred. Do not apply the full resident exemption to a nonresident share without that analysis. Nonresident provision.
Use the Department of Revenue's return resources alongside the current statutes. Compare Nebraska's recipient-age exemption or New Jersey's still-taxable sibling category.
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