What was the estate tax rate in 2012?

35%
Federal Estate and Gift Tax Rates, Exemptions, and Exclusions, 1916-2014

Is there a state estate tax?

Eleven states have only an estate tax: Connecticut, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. Washington, D.C. does, as well. Estate taxes are levied on the value of a decedent’s assets after debts have been paid.

How is state estate tax calculated?

The estate tax is calculated by adding together the decedent’s taxable estate (the gross estate less allowable deductions) and the decedent’s adjusted taxable gifts to determine the estate tax base (see below).

What states have a death tax?

While the Washington state death taxes are deductible against the Federal estate taxable income, (not the Federal estate taxes) if there are no Federal estate taxes due, then the state estate tax is effectively increased. Currently, Washington and Oregon are the only western states with a death tax.

What are the rules for inheritance tax?

There is no inheritance tax on the federal level that is levied by the Internal Revenue Service (IRS). The “inheritance tax” on the federal level is properly referred to as the estate tax and falls under the federal estate tax laws. The rules on estate taxes include determining the amount of tax liability and filing a return with the IRS.

What is federal tax rate on inheritance?

The federal income tax inheritance or estate tax is set at a maximum rate of 55 percent. This is on amounts received in inheritance from a deceased person’s estate that is in excess of the amount that is permitted to be deducted from the value of the gross estate value.

Are inheritance gifts taxable?

Generally, money or property you receive as a gift or inheritance is not considered to be taxable income to you. In the case of a gift, the donor may have to pay gift taxes on the amount of the gift but you, as the recipient, do not have to treat any portion of the gift as income.