Inheriting a home is often a bittersweet blessing. Along with the property comes a wave of memories, logistics, and inevitably, complex financial questions.

For many of our clients in Southeastern North Carolina, the first question isn't "What is the kitchen like?"—it's "What is the tax bill going to be?"

The good news for 2026 is that the tax code remains largely favorable for heirs, but there are specific inflation adjustments and state-level details you need to know. Whether you are navigating probate for a parent's home in Wilmington or figuring out what to do with a family beach cottage in Surf City, here is the updated financial landscape for selling inherited property this year.

1. The "Step-Up in Basis": Your Biggest Shield

The most important rule for heirs remains intact for 2026: The Step-Up in Basis.

This is the tax code's way of forgiving the appreciation that happened while your loved one owned the home.

How it Works: If your parents bought a home in Hampstead for $100,000 in 1990, and it was worth $600,000 on the day they passed away in 2026, your "cost basis" for tax purposes is reset to $600,000.

The Benefit: If you sell the home shortly after for $600,000, you owe $0 in federal capital gains tax, even though the property gained $500,000 in value over the decades. You are only taxed on the value growth that happens between the date of death and the date you sell.

2. 2026 Capital Gains: The New Numbers

If you do hold onto the property for a while and it increases in value before you sell, you will be subject to capital gains tax on that new growth. For 2026, the federal tax rates remain at 0%, 15%, and 20%, but the income thresholds have shifted due to inflation adjustments.

• 0% Rate: Applies if your taxable income is up to $49,450 (Single) or $98,900 (Married Filing Jointly).
• 15% Rate: Applies if your income is between $49,451 – $545,500 (Single) or $98,901 – $613,700 (Married).
• 20% Rate: Applies to income above those upper limits.

Note for N.C. Residents: Don't forget the state. North Carolina treats capital gains as ordinary income. The good news? The state income tax rate is scheduled to drop to 3.99% for the 2026 tax year, offering a small but welcome savings compared to previous years.

3. The "Two-Year" Rule Check

A common misconception is that you can use the $250,000/$500,000 Primary Residence Exclusion on an inherited home.

The Reality: Generally, you cannot use this exclusion unless you personally move into the inherited home and live there as your primary residence for at least two years. If you simply sell the home from the estate, you rely on the Step-Up in Basis rule, not the primary residence exclusion.

4. Local Costs: Transfer Taxes & Fees

When selling in our region, it helps to know the local closing costs so you can estimate your "net" proceeds accurately.

Excise Tax: North Carolina charges an excise tax (often called "revenue stamps") on property sales at a rate of $1.00 per $500 of value.

Example: Selling a $500,000 home in Leland will cost the estate $1,000 in excise tax at closing.

No "Extra" County Taxes: Unlike some counties in the Outer Banks, New Hanover, Pender, Onslow, and Brunswick counties do not currently levy an additional local land transfer tax (often 1%) on top of the state excise tax. This saves your estate thousands compared to selling further north on the coast.

5. Managing the "Vacancy" Gap

If the probate process drags on, remember that "vacant home insurance" is critical. Standard homeowner policies often deny claims if a home has been unoccupied for more than 30 or 60 days. We can connect you with local insurance brokers in Southport or Jacksonville who specialize in short-term "estate policies" to protect the asset while you prepare it for market.

navigating the Process

Selling an inherited home is about more than just numbers; it’s about stewardship. You want to honor the legacy left to you while making smart financial decisions for your own future.

At Aspyre Realty Group, we specialize in "Estate Concierge" services. We don't just list the house; we help coordinate the estate sale, manage the clean-out, and work directly with your probate attorney to ensure the sale timeline aligns with the legal requirements. Let us handle the heavy lifting so you can focus on what matters most.