Estate Planning Taxes

Q&A: What is an estate tax?

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 rateTaxable amountTax owed
18%$0 to $10,00018% 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

Leave A Comment