What's the difference between estate taxes and inheritance taxes?

Estate taxes are levied on the value of the assets that were owned by a deceased individual.  They are usually paid out of the estate before it is distributed. 

Inheritance taxes are levied on the portion of an estate inherited by a specific individual.  These taxes are the responsibility of the individual who inherits.

The federal government levies a federal estate tax, but not an inheritance tax.  Some states also levy estate taxes, although the federal estate tax, if applicable, is the largest tax levied.  Relatively few states have inheritance taxes.