I have just received a cash inheritance of $49,900. The inheritance tax was already paid prior to the distribution. I can't seem to get an answer as to whether I have to pay both Federal tax and Maryland State tax. I was also told to hold 1/3 back for state tax in MD. Can anyone clarify for me if I have to pay both Federal and Maryland state sales tax? Seems to be a lot of taxing on a small amount. Thanks for any help