These Are the States With the Highest ‘Death Taxes’

The Estate Tax

The first death tax is the estate tax. The federal government collects one, but only from very large estates—those with values in excess of $11.4 million as of 2019. This is up from $11.18 million in 2018. Only the value of an estate over that threshold is taxed.

But 12 states and the District of Columbia also have an estate tax, some with significantly smaller exemptions. The IRS at least allows your estate to take a deduction for anything it must pay to your state. This reduces the value of your estate for federal tax purposes, potentially bringing it under the exemption amount.

As the name implies, the estate tax is paid from your estate’s coffers. Your beneficiaries and heirs receive what’s left over. The IRS defines the estate tax as one that applies to “your right to transfer property at your death.”

PREV1 2 3 ... 9NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

related posts
from our network