Search

Does Arizona Have an Inheritance Tax?

Residents of Arizona who inherit family property from their parents are not required to pay inheritance property taxes. Here’s everything you need to know about inheritance tax in Arizona.
Does Arizona Have an Inheritance Tax
Does Arizona Have an Inheritance Tax?
An Arizona resident does not have to pay an inheritance tax in the state. While there was an Arizona inheritance tax previously, the government permanently signed a bill and removed all inheritance, gift, and estate tax from the state. Let's read on to know more details about inheritance tax in Arizona.  
In this article

Being a resident of Arizona and wondering if you have to pay an inheritance tax is normal. Does Arizona have an inheritance tax? The simple answer is no. An Arizona resident does not have to pay an inheritance tax in the state. While there was an Arizona inheritance tax previously, the government permanently signed a bill and removed all inheritance, gift, and estate tax from the state. 

However, it is important to remember that if a resident’s parents lived in a state where inheritance tax is legal, such as Pennsylvania and Kentucky, they might receive a tax bill from the particular state after confirming the inheritor. Also, don’t miss any tax deadlines in the future. Use Beem tax filing assistance to file all federal and state taxes across all filing statuses.

Do I Need to Pay Taxes on Inherited Property in Arizona?

Residents of Arizona who inherit family property from their parents are not required to pay inheritance property taxes. No matter the situation, whether they intend to sell the property or keep it for themselves.

Hence, residents can manage inherited wealth more freely without worrying about paying extra taxes.

Do Other States Impose Inheritance Taxes?

A few states have to pay inheritance tax after inheriting the property. Therefore, whether or not the inheritance will be taxed depends on where the person who died lived, not where the person who gets the inheritance lives. For example, if someone in Arizona gets an inheritance from their parents who also lived in Arizona or a state without inheritance tax, they won’t have to pay any tax on it. But if their parents lived in a state with an inheritance tax, like New Jersey, the person in Arizona might get a tax bill from that state after getting the inheritance.

States that impose inheritance tax are:

  • Pennsylvania
  • Kentucky
  • New Jersey
  • Lowa
  • Maryland
  • Nebraska

Are There Time Limits for Selling Inherited Property in Arizona?

Arizona has no specific time limit for selling an inherited property. The inherited property can be sold whenever the probate process is concluded and the legal inheritor is formally recognized. This gives people who inherit property in the state the freedom to choose the best time to sell. It also allows inheritors to handle the sale of inherited property at their discretion after the probate process is concluded.

Are There Any Taxes on Gifts in Arizona?

No, there are no taxes on gifts in Arizona. Therefore, Arizonans can give gifts to others without worrying about paying extra taxes because the state does not impose one. Gifting amounts exceeding these limits to a single individual in a given year can impact your lifetime exemption of $12.92 million. This means that going beyond the yearly exemption may reduce the total amount you can gift throughout your lifetime without facing federal gift taxes.

Which States Have No Inheritance Tax?

All U.S. states except Lowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania do not have an inheritance tax. Therefore, individuals inheriting property in states other than those above six do not need to worry about paying additional taxes on their inherited assets. This lack of inheritance tax allows residents to manage inherited wealth without the financial burden of additional taxation.

Conclusion

In Arizona, residents benefit from not being required to pay inheritance, gift, or estate taxes. If you plan to move to Arizona, you can enjoy the significant advantage of not dealing with these taxes. However, it’s crucial to ensure that your parents are residents of Arizona or a state without inheritance taxes. Use Beem to file your taxes without any hassle and get the maximum refund on your returns.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎
Fatema Yusuf

Fatema Yusuf

A passionate writer, who loves to write about anything and everything. She usually writes about finance and investment options. She enjoys talking about personal development and loves to help people grow. she loves to cook for kids and upcycle old stuff to give them a new life.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Do Homeless People Pay Taxes
Do Homeless People Pay Taxes?
Being homeless is a complicated problem that affects a huge number of people all over the United States. Some of them pay taxes, but not all do. Here's a detailed guide to help through paying taxes for homeless people.
List of Tax Deductions for Lawn Care Business [2024]
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Low-income people obtain health insurance through Medicaid. If you are covered under this program, you may not have to file income taxes if your income is below the filing threshold. Let's read on to know more!
game-show
Taxes on game show winnings and prizes: How much tax you have to pay?
Winning at least $600 is likely to result in a 1099-MISC tax form being sent by the awarding entity to both the winner and the IRS. If no form is received, the winner is still obligated to report the winnings value.
60000 after tax
60k a year is how much a month/week/hour after taxes?
If you earn a yearly salary of $60,000, it is crucial to know the amount of income tax you are obligated to pay. Planning ahead and determining the income tax rate on a salary of $60,000 per year can help you efficiently navigate the tax filing process. Calculating how much you owe can be a daunting task, but our blog provides a useful breakdown to help you determine the amount of tax you need to pay this year.
W2 Form 2024: Everything You Need to Know
The IRS requires employers to send their employees a copy of their W-2 form by January 31 or face penalties. Even if you have quit your job, your last employer can send you a W-2 by  January 31 or earlier, in which case the employer has 30 days to provide it.
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Get up to 20% on everyday spends

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: