Short answer: The United States has no federal inheritance tax on heirs — the federal tax that may apply is an estate tax, charged to the deceased person’s estate before anything is distributed. Florida imposes no state estate or inheritance tax at all. For foreign heirs, the key question is usually not “will the U.S. tax me?” but “was the deceased a U.S. person, and where were the assets located?” — because a non-resident’s U.S.-situated assets above just $60,000 can trigger a federal estate tax filing, while your own country may separately tax what you receive.
Estate Tax vs. Inheritance Tax: The Distinction That Matters
These two terms are often mixed up, but they work differently:
- Estate tax is paid by the estate itself, calculated on the total value of what the deceased owned, before distribution to heirs.
- Inheritance tax is paid by the person who inherits. The U.S. federal government does not levy one, and neither does Florida.
So if you are a foreign heir receiving assets from a Florida estate, the U.S. will generally not tax you personally on the inheritance. Any U.S. tax exposure is resolved at the estate level during probate — which is exactly why the estate’s personal representative must handle it correctly before distributions are made.
When the Deceased Was a U.S. Citizen or Resident
U.S. citizens and residents enjoy a very large federal estate tax exemption — $15 million per person for deaths in 2026. The vast majority of estates fall far below this threshold, meaning no federal estate tax is due at all. Combined with Florida’s lack of any state-level death tax, most Florida estates pass to heirs — foreign or domestic — with no U.S. transfer tax burden.
When the Deceased Was a Non-Resident with U.S. Assets
The picture changes dramatically when the person who died was not a U.S. citizen or resident but owned assets located in the United States — a Florida condo, U.S. brokerage accounts, or shares in U.S. companies. For these “non-resident alien” estates:
- Only U.S.-situated assets are taxed (real estate in Florida is the classic example).
- The exemption is only $60,000 — not $15 million — and this figure is not adjusted for inflation.
- Above the exemption, rates climb to a top federal rate of 40%.
- The estate must file Form 706-NA within nine months of death (a six-month extension is available).
- Some countries have estate tax treaties with the U.S. that improve this position — whether one applies depends on the deceased’s country of domicile.
Banks and brokers often refuse to release a non-resident decedent’s U.S. accounts until the IRS issues a transfer certificate confirming the estate tax situation is settled — a step that surprises many foreign families and can add months to the process if not anticipated.
Your Home Country May Tax the Inheritance
Even when the U.S. takes nothing, the country where you live may tax inheritances received from abroad. Rules vary enormously — some countries exempt close relatives, others tax worldwide inheritances of their residents. Before accepting distributions, it is worth confirming your local reporting and tax obligations with an advisor in your own country, so the inheritance does not create an unexpected bill at home.
Practical Steps for Foreign Heirs of a Florida Estate
- Establish who the decedent was for U.S. tax purposes — citizen, resident, or non-resident — because everything else flows from this.
- Inventory U.S.-situated assets early, especially real estate and financial accounts.
- Let the personal representative resolve estate-level taxes first; distributions come after.
- Check your home-country rules on inheritance taxation and reporting.
- Work with a Florida probate attorney who regularly represents foreign heirs — deadlines, treaty questions, and transfer certificates are much easier handled proactively than retroactively.
Frequently Asked Questions
Do I pay U.S. tax on money I inherit from an American relative?
Generally no. The U.S. taxes the estate, not the heir. If the estate owed any federal estate tax, it is settled during administration; what you receive afterward is not U.S. income to you.
Does Florida have an inheritance tax in 2026?
No. Florida has no state estate tax and no state inheritance tax. The only potential death tax on a Florida estate is the federal estate tax, which applies only above the (very high) federal exemption for U.S. persons.
My father was not a U.S. citizen but owned a Florida condo. Is there tax?
Possibly. As a non-resident’s U.S.-situated asset, the condo counts toward the $60,000 exemption. If the U.S. assets exceed that value, the estate likely must file Form 706-NA and may owe federal estate tax — unless a treaty between the U.S. and his country of domicile improves the position. This should be assessed before the property is sold or transferred.
Will I be taxed again when I transfer the money home?
The transfer itself is not a U.S. taxable event. However, your country of residence may tax or require reporting of the inheritance, and banks may ask for documentation of the funds’ origin — keep the probate records handy.
This article is general information, not legal or tax advice. Cross-border estates involve deadlines and filings that vary case by case. If you are a foreign heir to assets in Florida or elsewhere in the U.S., contact our office — we guide international families through probate from the first document to the final distribution.
