Does Texas have an estate tax?

No. Texas levies no state estate tax. The state's old pick-up/inheritance tax regime — former Tax Code chapter 211 — was REPEALED by S.B. 752 (84th Legislature), effective September 1, 2015 ('SECTION 1. Chapter 211, Tax Code, is repealed.'). Nothing replaced it.

Does Texas have an inheritance tax on beneficiaries?

No. Beneficiaries pay no Texas tax on what they inherit. (A handful of OTHER states impose inheritance tax on their residents or in-state property — inheriting from someone in one of those states can still trigger THAT state's tax.)

So is death tax-free in Texas?

Not automatically. The FEDERAL estate tax still applies above the federal exclusion (portability elections and trust structuring matter near it); income tax applies to inherited retirement accounts as they're distributed; and the basis step-up rules decide capital-gains outcomes for appreciated assets — including the powerful double step-up potential for Texas community property.

What is Estates Code chapter 124?

Texas's apportionment machinery: when a federal estate tax IS owed, ch. 124 allocates the burden among the people interested in the estate (unless the will says otherwise) — the statute S.B. 752 conformed when it repealed the inheritance tax. If your estate may be taxable, your will should say expressly who bears the tax.

Does inheriting a Texas homestead change the property taxes?

It can. Exemptions (homestead, over-65, disability) belong to qualifying OWNERS — heirs must apply in their own right, and Texas law has specific provisions for 'heir property' owners to claim the homestead exemption. Budget for the reassessment reality when planning who keeps the house.

Texas Has No Estate or Inheritance Tax — What Still Applies

Last updated October 22, 2026

Texas imposes no estate tax and no inheritance tax. The former inheritance-tax chapter — Tax Code chapter 211 — was repealed outright by S.B. 752 (84th Legislature), effective September 1, 2015, and nothing replaced it. That makes Texas one of the friendliest states to die in — but “no state death tax” is not “no tax planning.” This is general information about Texas law, not legal advice.

What still applies

The federal estate tax

Estates above the federal exclusion still face the federal tax, and married couples near it should mind the portability election and trust structuring. For most families the federal exclusion means no tax — but the return-filing decision (to lock portability) is still a real one.

Apportionment — Estates Code ch. 124

If federal tax IS owed, Texas's apportionment rules spread the burden among beneficiaries unless the will directs otherwise. Silence here creates exactly the fight a will exists to prevent — taxable estates should say expressly who bears the tax.

Basis step-up — the quiet giant

Appreciated assets get a fair-market-value basis at death, erasing built-in capital gains. Texas community property can step up BOTH halves at the first spouse's death — a uniquely powerful reason to get property characterization right while both spouses are alive.

Income and property taxes

Inherited retirement accounts are taxed as distributed (with the compressed post-death payout rules); and the homestead's property-tax exemptions must be re-established by the heirs who qualify, including under the heir-property provisions.

Your Texas Estate Plan handles the taxes that DO exist — characterization for the double step-up, apportionment language, and beneficiary-designation coordination.

Start your Texas Estate Plan

General information about Texas law, not legal advice, and not tax advice — federal thresholds and elections change; confirm current figures with your tax professional. EstateDraft is software, not a law firm.

Frequently asked questions

Does Texas have an estate tax?: No. Texas levies no state estate tax. The state's old pick-up/inheritance tax regime — former Tax Code chapter 211 — was REPEALED by S.B. 752 (84th Legislature), effective September 1, 2015 ('SECTION 1. Chapter 211, Tax Code, is repealed.'). Nothing replaced it.
Does Texas have an inheritance tax on beneficiaries?: No. Beneficiaries pay no Texas tax on what they inherit. (A handful of OTHER states impose inheritance tax on their residents or in-state property — inheriting from someone in one of those states can still trigger THAT state's tax.)
So is death tax-free in Texas?: Not automatically. The FEDERAL estate tax still applies above the federal exclusion (portability elections and trust structuring matter near it); income tax applies to inherited retirement accounts as they're distributed; and the basis step-up rules decide capital-gains outcomes for appreciated assets — including the powerful double step-up potential for Texas community property.
What is Estates Code chapter 124?: Texas's apportionment machinery: when a federal estate tax IS owed, ch. 124 allocates the burden among the people interested in the estate (unless the will says otherwise) — the statute S.B. 752 conformed when it repealed the inheritance tax. If your estate may be taxable, your will should say expressly who bears the tax.
Does inheriting a Texas homestead change the property taxes?: It can. Exemptions (homestead, over-65, disability) belong to qualifying OWNERS — heirs must apply in their own right, and Texas law has specific provisions for 'heir property' owners to claim the homestead exemption. Budget for the reassessment reality when planning who keeps the house.

General information about Texas law, not legal advice.