Federal Estate Tax Rates Overview
The Economic Growth and Tax Relief Act of 2001 was signed into law on June 7, 2001. Under this law, the federal estate tax continues but with increasing Unified Credit and decreasing top federal estate tax rates until 2010. The federal estate tax is repealed in the year 2010 only. In the year 2011, the federal estate tax will be re-imposed, the Unified Credit will return to $1,000,000 and the top tax rate will again be 55%.
FOR A TAXABLE ESTATE |
THE FEDERAL ESTATE TAX |
||
|
From |
To |
Is |
Of Amount Over |
|
$0 |
$10,000 |
18% |
$0 |
|
10,001 |
20,000 |
1,800 + 20% |
10,000 |
|
20,001 |
40,000 |
3,800 + 22% |
20,000 |
|
40,001 |
60,000 |
8,200 + 24% |
40,000 |
|
60,001 |
80,000 |
13,000 + 26% |
60,000 |
|
80,001 |
100,000 |
18,200 + 28% |
80,000 |
|
100,001 |
135,000 |
23,800 + 30% |
100,000 |
|
135,001 |
250,000 |
38,800 + 32% |
135,000 |
|
250,001 |
500,000 |
70,800 + 34% |
250,000 |
|
500,001 |
750,000 |
155,800 + 37% |
500,000 |
|
750,001 |
1,000,000 |
248,300 + 39% |
750,000 |
|
1,000,001 |
1,250,000 |
345,800 + 41% |
1,000,000 |
|
1,250,001 |
1,500,000 |
448,300 + 43% |
1,250,000 |
|
1,500,001 |
2,000,000 |
555,800 + 45% |
1,500,000 |
|
2,000,001 |
& Up |
780,800 + 48% |
2,000,000 |
Unified Credit
If You Die During |
Top Estate Tax Rate |
Applicable Unified Credit |
Equivalent Exemption |
|
2003 |
49% |
345,800 |
1,000,000 |
|
2004 |
48% |
555,800 |
1,500,000 |
|
2005 |
47% |
555,800 |
1,500,000 |
|
2006 |
46% |
780,800 |
2,000,000 |
|
2007 |
45% |
780,800 |
2,000,000 |
|
2008 |
45% |
780,800 |
2,000,000 |
|
2009 |
45% |
1,455,800 |
3,500,000 |
|
2010 |
Repealed for 1 year |
Unlimited |
Unlimited |
|
2011 |
55% |
345,800 |
1,000,000 |
Federal estate taxes are paid on assets that do not go to a surviving spouse or a trust for a spouse’s benefit. To calculate, ascertain total estate value and add lifetime taxable gifts (if any). This figure will be your total taxable estate. Determine the federal estate tax due from Table 1 and subtract the appropriate Unified Credit for the year of death from the Table 2. This figure will be your federal estate tax due.