While the terms "estate tax" and "inheritance tax" are often used interchangeably when referring to taxes collected after someone dies, these two terms refer to two completely different types of death taxes.
An estate tax is a tax on the privilege of transferring property to others after a person's death. In addition to federal estate taxes, many states have their own estate taxes. It is a type of death tax that is calculated based on the net value of property owned by a deceased person on the date of death. It
On the other hand, inheritance tax is a type of death tax that is calculated based on who receives a deceased person's property.
