Indiana doesn't have an estate tax, but it does have an inheritance tax with a wide range of rates. Real property gets taxed at rate ranging from 1 percent to 10 percent, but most financial assets have higher rates of 7 percent to 15 percent, and rates on business interests start at 10 percent and go as high as 20 percent. Exemptions differ depending on your relationship to the deceased person. Your spouse has an unlimited exemption, and parents, grandparents, children, and grandchildren have $100,000 exemptions. But other family members only get between $100 and $500 before the taxes begin to take effect.
However, Indiana is phasing out its inheritance tax by reducing the tax by 10 percent for those receiving bequests in 2013. That reduction will gradually get bigger in the coming years, but the tax is not slated to disappear until 2022.