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Estate Tax Rates
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To calculate
the “tentative tax” for an estate, find the bracket that
applies to the value of the estate, subtract the bottom bracket amount
from the estate, multiply that result by the marginal rate, then add
the bracket tax. To compute the actual tax (before any state death
tax or similar credits), subtract the Applicable Credit
Amount from the tentative tax.
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Bottom Bracket
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Top Bracket
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Bracket Tax
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Marginal Rate
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$0
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$10,000
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$0
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18%
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$10,001
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$20,000
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$1,800
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20%
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$20,001
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$40,000
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$3,800
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22%
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$40,001
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$60,000
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$8,200
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24%
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$60,001
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$80,000
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$13,000
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26%
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$80,001
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$100,000
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$18,200
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28%
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$100,001
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$150,000
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$23,800
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30%
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$150,001
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$250,000
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$38,800
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32%
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$250,001
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$500,000
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$70,800
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34%
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$500,001
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$750,000
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$155,800
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37%
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$750,001
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$1,000,000
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$248,300
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39%
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$1,000,001
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$1,250,000
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$345,800
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41%
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$1,250,001
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$1,500,000
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$448,300
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43%
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$1,500,001
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$2,000,000
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$555,800
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45%
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$2,000,001
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$2,500,000
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$780,800
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49%
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$2,500,000
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No limit
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$1,025,800
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49%*
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*This
rate will be reduced by 1% for each year between 2004 and 2007, and
return to 50% as of 2011.
Applicable Credit
Amount
|
Year
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Applicable Exclusion
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Applicable Credit Amount
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2003
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$1,000,000
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$345,800
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2004 and 2005
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$1,500,000
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$555,800
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2006,2007,2008
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$2,000,000
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$780,800
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2009
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$3,500,000
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$1,455,800
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2010
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No estate tax
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No estate tax
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2011 and beyond
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$1,000,000
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$345,800
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