Do I have to pay taxes on an inheritance in Tennessee?

An inheritance tax is essentially a tax on the amount of money or assets the heirs or beneficiaries of an estate receive. This means that if you are a resident of Tennessee, or own real estate in this state, you will not have to pay an inheritance tax.

What is the inheritance tax rate in Tennessee?

For any estate that is valued under the exemption limit for a particular year, the inheritance tax does not apply. However, if the value of the estate is over the exempted allowance for a particular year, the tax rate ranges from 5.5% at the lowest end to 9.5% at its highest end.

Does TN require an inheritance tax waiver form?

Tennessee residents may wish to apply for an inheritance tax waiver if the decedent died between 2006 and 2012 and left an estate which is less than the exemption allowed heirs. The size of the exemption will increase until 2016, when the inheritance tax will be discontinued.

What happens to the estate tax exemption in 2026?

Under the current tax law, the higher estate and gift tax exemption will “Sunset” on December 31, 2025. Starting January 1, 2026, the exemption will return to $5.49 million adjusted for inflation. With inflation, this may land somewhere around $6 million.

Does Tennessee still have an inheritance tax?

No. Tennessee is an inheritance tax– and estate tax-free state. Those who handle your estate following your death, though, do have some other tax returns to take care of, such as: Final individual federal and state income tax returns – each due by tax day of the year following the individual’s death.

Does Tennessee have an estate tax?

Tennessee has no estate tax, regardless of the size of your estate. There is a federal estate tax, though, that will apply to Volunteer State residents who have estates of sufficient size.

What is the estate tax in Tennessee?

Though Tennessee has no estate tax, there is a federal estate tax that may apply to you if your estate is of sufficient value. There is a $11.18 million exemption for the federal estate tax in 2018. The exemption level will increase to $11.40 million in 2019.