Taxes When You Sell an Inherited House in Florida
Last updated 2026-06-05 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Florida charges no estate tax and no inheritance tax, so you owe nothing to the state just for inheriting a house. When you sell, your taxable gain is figured from the home's value on the date you inherited it, not what the original owner paid. This stepped-up basis usually wipes out most gain. You may owe federal capital gains tax only on appreciation after that date.
| Tax or cost | Selling an inherited FL house | Notes |
|---|---|---|
| Florida estate tax | None | Florida has no state estate tax |
| Florida inheritance tax | None | Florida has no inheritance tax |
| Cost basis used | Stepped-up to date-of-death value | Resets the basis; verify with a CPA |
| Federal capital gains | Only on gain above stepped-up basis | Often small or zero on a quick sale |
| Documentary stamp tax on deed | Seller, by FL custom (negotiable) | Confirm in the contract before signing |
| Realtor commission | None with Cash Flow Deals | CFD is free for sellers |
| Repairs before sale | None with Cash Flow Deals | Sell as-is, price locked at signing |
Florida Has No Estate or Inheritance Tax
Start with the good news. Florida does not impose a state estate tax or a state inheritance tax. You do not write a check to the State of Florida simply because a house passed to you when a relative died. Florida repealed its estate tax years ago, and it has never had a separate inheritance tax on the people who receive property. That puts Florida among the more seller-friendly states for inherited real estate.
That is different from federal estate tax, which is a tax on the deceased person's total estate, not on you as the heir, and which only applies to very large estates above a high federal exemption. The vast majority of Florida estates never reach that threshold. For most people inheriting a single home, the practical answer is that no estate or inheritance tax is due at all. The tax that actually matters to most heirs shows up later, when you sell, and it is capital gains.
Stepped-Up Basis: The Rule That Saves You the Most
This is the single most important concept for an inherited house, and it usually works strongly in your favor. When you inherit property, your cost basis is reset, or stepped up, to the home's fair market value on the date the previous owner died. You do not inherit what they originally paid for it decades ago. You inherit a fresh basis equal to the home's value the day you received it.
Here is why that matters. Capital gains tax is charged on the difference between what you sell for and your basis. If a parent bought a home long ago for a low price and it is worth far more today, that lifetime of appreciation is essentially erased for tax purposes by the step-up. If you then sell near the inherited value, your taxable gain can be very small or nothing. The number you need is a defensible date-of-death value, which an appraisal or a comparative market analysis can establish. Keep that documentation, because it is the foundation of your tax position.
When You Might Owe Federal Capital Gains
You can still owe federal capital gains tax, but only on appreciation that happens after the date you inherited the home. If the value on the date of death was one amount and you sell months or years later for more, the difference is your gain. Sell quickly and close to the stepped-up value, and that gain is often minimal. Hold the property while the market climbs, and the gap can grow.
Inherited property generally receives long-term capital gains treatment regardless of how long you personally held it, which is typically taxed at lower rates than ordinary income. Selling costs and certain improvements can also reduce the taxable gain. None of this is legal or tax advice, and the exact rate and amount depend on your income and your specific numbers, so confirm everything with a Florida CPA or tax professional before you file. The takeaway is simple: the step-up shrinks the gain, and a faster sale near the inherited value keeps it smallest.
Probate, Multiple Heirs, and Selling As-Is
Most inherited Florida homes pass through probate, the court process that confirms who legally owns the property and clears the title for sale. You generally cannot sell until probate gives you the authority to transfer the home, so this is often the real timeline driver, not the tax. If several heirs inherited together, all owners typically must agree to sell and sign, which is the most common reason an inherited sale stalls.
Inherited houses also tend to need work. Deferred maintenance, an older roof, dated systems, or a property full of belongings can make a traditional listing slow and expensive. This is exactly where an as-is sale fits. You do not pour money into a home you are trying to leave, and you do not fight over repair credits. A buyer who commits to as-is up front, with the price locked, removes the friction that makes inherited sales drag on.
How Cash Flow Deals Handles an Inherited Sale
Cash Flow Deals connects you with a real bank-financed buyer who purchases the inherited home as-is. You make zero repairs, you clear out on your timeline, and the price is locked the moment you sign, so there is no inspection re-trade lowering your number later. Because the buyer borrows from a lender rather than discounting for a flip, the path is built so you net more than a typical investor lowball, which protects the equity that the stepped-up basis already helped you keep.
The sale closes through one title transfer handled by Title Guaranty of South Florida, a licensed Florida title company. One transfer keeps the paperwork clean, which matters when title is coming out of an estate. Cash Flow Deals is free for sellers, and the CFD fee shows up as its own separate line on the closing statement, not skimmed off your price. To walk through your specific inherited home and timeline, start with the address or call 786-891-9111, then decide after you see the numbers.
Common questions
Do I pay inheritance tax when I sell an inherited house in Florida?
No. Florida has no inheritance tax and no state estate tax, so you owe the state nothing for inheriting a home. The only tax that may apply when you sell is federal capital gains, and the stepped-up basis usually keeps that small or zero.
What is stepped-up basis on an inherited Florida home?
Your cost basis resets to the home's fair market value on the date the previous owner died, not what they originally paid. This erases that lifetime of appreciation for tax purposes, so if you sell near the inherited value, your taxable gain is often very small or nothing.
How do I avoid capital gains tax on an inherited house?
You generally cannot avoid all of it, but the stepped-up basis already removes most gain. Selling soon after inheriting, near the date-of-death value, keeps any remaining gain minimal. Keep an appraisal documenting that value and confirm your numbers with a Florida CPA.
Do I have to go through probate before I can sell?
Usually yes. Probate confirms who legally owns the home and clears the title before you can transfer it. If multiple heirs inherited together, all of them typically must agree and sign. Probate timing is often the real driver of an inherited sale, not the taxes.
Can I sell an inherited house as-is without repairs?
Yes. With Cash Flow Deals you sell the home in its current condition to a real bank-financed buyer, make no repairs, and lock the price at signing. The sale closes through Title Guaranty of South Florida. Call 786-891-9111 to start with your address.