Licensed Real Estate Agent · Pearson Smith Realty · VA · MD · DC · WV · DE · PA

Inherited Property Taxes: West Virginia vs. Delaware

WV has no inheritance tax. DE taxes non-lineal heirs up to 16%. Here is exactly what you owe in each state.

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WV: zero state inheritance or estate taxDE: lineal heirs exempt, others pay up to 16%Stepped-up basis reduces federal capital gains in both
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Two States, Two Very Different Tax Approaches

If you inherited real property in West Virginia or Delaware, the state tax treatment is nearly a complete contrast. West Virginia has no inheritance tax and no estate tax — one of the most heir-friendly states in the country. Delaware still collects inheritance tax on transfers to non-lineal heirs. Understanding the difference matters before you make any decisions about selling.

West Virginia: No Inheritance Tax, No Estate Tax

West Virginia eliminated its inheritance tax in 1985 and has no state estate tax. For heirs inheriting WV real property, state-level death taxes are simply not a factor regardless of the relationship to the deceased or the value of the property.

What does apply: federal capital gains tax when you eventually sell. Your basis is stepped up to the fair market value at the date of death, eliminating the built-up gain from the original owner's tenure. Sell quickly and you likely owe little to no capital gains because you have not had time to accumulate appreciation above your stepped-up basis. Wait several years in a rising market and your exposure grows.

Delaware: Inheritance Tax Applies to Non-Lineal Heirs

Delaware imposes inheritance tax at rates ranging from 0% to 16% depending on the beneficiary's relationship to the deceased. Surviving spouses pay nothing. Lineal heirs — children, grandchildren, parents, grandparents — also pay nothing. The tax kicks in for siblings (Class B, up to 4%) and more distant relatives or unrelated beneficiaries (Class C, up to 16% above exemption amounts).

If you are a child or grandchild inheriting Delaware property, the inheritance tax is not your concern. If you are a sibling or more distant heir, calculate the exposure before deciding whether to sell quickly or hold. Delaware's estate tax was repealed in 2018.

Capital Gains: The Same Federal Rules Apply in Both States

Regardless of whether you inherit in West Virginia or Delaware, the federal stepped-up basis rule applies identically. Your cost basis is the property's fair market value on the date of the original owner's death. Both WV and DE have state income taxes on capital gains — WV at rates up to 6.5%, DE at rates up to 6.6%. Neither is dramatically different from the other.

In both states, selling quickly after inheriting minimizes capital gains exposure because you have little time to accumulate appreciation above your stepped-up basis. Holding for years in an appreciating market increases the gain you eventually owe tax on.

Selling Inherited Property in Either State

The mechanics are similar: the estate goes through probate in the county where the deceased lived, the personal representative gains authority to sell real property, and proceeds distribute to heirs per the will or intestate law. Both states allow personal representatives to accept cash offers without court approval in most circumstances.

As-is cash sales are particularly common for inherited properties in both states — heirs are often out of state, properties are in deferred maintenance, and the priority is closing the estate efficiently rather than maximizing retail price.

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Dan explained every option clearly. We did a wholetail and netted $40K more than the cash offer we got elsewhere.

M.T., Woodbridge, VA
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Inherited my dad's house and had no idea what to do. Dan walked me through everything with zero pressure. Closed in 3 weeks.

K.R., Germantown, MD
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Facing foreclosure and thought I had no options. Dan helped me sell fast and kept my credit intact. Called on a Tuesday, closed in 18 days.

J.P., Dale City, VA

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Dan White
Licensed Agent · 20+ Years Experience

“Whatever brought you here, I've seen it before. My job is to make sure you understand every option before you make any decisions.”

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Why Dan White
20+ years fixing & flipping across the Mid-Atlantic
Licensed agent — Pearson Smith Realty
Serving VA, MD, DC, WV, DE, PA
No seller commission on cash sales
Any condition — no repairs, no cleanout
Close in 7 days or 90 — your timeline
No judgment. No pressure. Ever.