Inheritance tax tends to be fairly high, which is one of the reasons controversy surrounds it. The exact rates vary from state to state, but inheritance taxes tend to be set up on a progressive scale. The more valuable the estate, the higher the tax rate. The tax bracket for your inheritance depends on your relationship to the decedent. Whether your states considers you a beneficiary, an heir or a transferee, the state will classify you according to your relationship to the decedent. Which class you fall in determines your tax rate. Surving spouses are completely exempt from inheritance tax.