An estate tax is a tax on estates that exceed a certain value upon the owner’s death. For the U.S. federal government, this value, or estate tax exemption, is $11.58 million; anything above that is subject to the marginal estate tax brackets below.
2020 Federal Estate Tax Rates
| Tax rate | Taxable amount | Tax owed |
|---|---|---|
| 18% | $0 to $10,000 | 18% of taxable amount |
| 20% | $10,001 to $20,000 | $1,800 plus 20% of the amount over $10,000 |
| 22% | $20,001 to $40,000 | $3,800 plus 22% of the amount over $20,000 |
| 24% | $40,001 to $60,000 | $8,200 plus 24% of the amount over $40,000 |
| 26% | $60,001 to $80,000 | $13,000 plus 26% of the amount over $60,000 |
| 28% | $80,001 to $100,000 | $18,200 plus 28% of the amount over $80,000 |
| 30% | $100,001 to $150,000 | $23,800 plus 30% of the amount over $100,000 |
| 32% | $150,001 to $250,000 | $38,800 plus 32% of the amount over $150,000 |
| 34% | $250,001 to $500,000 | $70,800 plus 34% of the amount over $250,000 |
| 37% | $500,001 to $750,000 | $155,800 plus 37% of the amount over $500,000 |
| 39% | $750,001 to $1,000,000 | $248,300 plus 39% of the amount over $750,000 |
| 40% | $1,000,001 and up | $345,800 plus 40% of the amount over $1,000,000 |
