North Carolina Estate and Inheritance Tax: Neither Exists

North Carolina once taxed estates, but the legislature repealed the state estate tax in 2013, after repealing the inheritance tax in 1999. Today the only death tax that can reach a North Carolina estate is the federal estate tax, which applies to estates above a large exclusion.

This guide sets out what was repealed and when, what still applies at the federal level, and a labelled illustration of where the federal line falls. It uses the NC Department of Revenue's estate tax collections report and the IRS estate and gift tax page, read on 2 November 2026. The General Assembly's statute site (ncleg.gov) blocked our automated reader, so the repeal is sourced from the Department of Revenue's report, which cites the session law.

Does North Carolina Have an Estate or Inheritance Tax?

No. The NC Department of Revenue's estate tax collections report states: "SL 2013-316, s. 7 (a) repeals the North Carolina estate tax effective January 1, 2013 and applies to the estates of decedents dying on or after that date." The same report says the inheritance tax was repealed effective 1 January 1999 and applied to the estates of decedents dying on or after that date.

An estate tax is imposed on the right to transfer property at death, while the old North Carolina inheritance tax was based on the relationship of the beneficiaries. Neither is charged now, so heirs do not pay a state inheritance tax and a North Carolina estate has no state estate tax to pay.

What Changed and When

• 1 January 1999: inheritance tax repealed for decedents dying on or after that date.
• 1 January 2013: estate tax repealed by Session Law 2013-316, section 7(a), for decedents dying on or after that date.

What Still Applies: The Federal Estate Tax

The IRS says the Working Families Tax Cuts law (Public Law 119-21, signed 4 July 2025) increases the basic exclusion amount to $15,000,000 for calendar year 2026. The federal return is Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

For married couples, the IRS states that estates of decedents survived by a spouse may elect to pass any of the decedent's unused exclusion to the surviving spouse. The election is made on a timely filed estate tax return for the decedent with a surviving spouse.

Illustration: Where the Federal Line Falls (Our Calculation)

This example is our own arithmetic, not an IRS figure, and ignores deductions, adjusted taxable gifts and portability. A North Carolina resident who dies in 2026 with a $12,000,000 estate is $3,000,000 under the $15,000,000 exclusion, so the estate sits below the basic exclusion amount. An estate of $17,000,000 exceeds it by $2,000,000, and that excess is the starting point for any federal tax.

Property in Other States

North Carolina's repeal does not change other states' rules. State-by-state lists are in our state estate tax guide and state inheritance tax guide; check the other state's revenue department for property located there.

Official Sources

• NC Department of Revenue: Table 5, Estate Tax Collections
• IRS: What's New, Estate and Gift Tax