My wife's aunt recently passed away in New York State. We live in Maryland. What state and federal taxes will have to be paid on the inheritance once the estate is settled. The estate is valued at less than one million. 2 blood relative split 50%. 8 nonblood relitives split the remaining 50%. What is my wife's tax liability?

Your wife will have ZERO tax liability.

No federal estate taxes will be due because the estate is less than one million USD. Even if estate taxes were due, the ESTATE pays them not the heirs.

As for NY state inheritance/death taxes, I suspect nothing is due there either, but I do not practice in NY state, so I am not sure.