Federal Gift and Estate Tax Rates
In general, the tentative federal gift or estate tax is calculated by referencing the taxable gift or estate to the following table. The net gift or estate tax is obtained by reducing the tentative tax by the amount of available unified gift or estate tax credit, credits for state and foreign death taxes, and gift taxes paid on certain prior transfers.
The federal gift tax return (Form 709) and federal estate tax return (Form 706) for current and prior years, accompanying instructions, and related publications can be found at the IRS web site.
Federal Gift and Estate Tax Rates for Transfers Occurring in 2011
Column A | Column B | Column C | Column D |
Rate of tax | |||
Taxable | Taxable | Tax on | on excess |
amount | amount | Amount in | over amount |
over-- | not over-- | Column A | in Column A |
- - - - | $10,000 | - - - - - | 18% |
$10,000 | 20,000 | $1,800 | 20% |
20,000 | 40,000 | 3,800 | 22% |
40,000 | 60,000 | 8,200 | 24% |
60,000 | 80,000 | 13,000 | 26% |
80,000 | 100,000 | 18,200 | 28% |
100,000 | 150,000 | 23,800 | 30% |
150,000 | 250,000 | 38,800 | 32% |
250,000 | 500,000 | 70,800 | 34% |
500,000 | 750,000 | 155,800 | 35% |
Top Gift and Estate Tax Rates for Years 2003 Through 2012
Top Gift | |
and Estate | |
Year | Tax Bracket |
2003 | 49% |
2004 | 48% |
2005 | 47% |
2006 | 46% |
2007 | 45% |
2008 | 45% |
2009 | 45% |
2010 | 35% (Gift Tax Only. Estate Tax Repealed) |
2011 | 35% |
2012 | 35% |
The following table shows the amount that can is sheltered by the estate tax credit for the calendar year in which a decedent dies. These amounts would be reduced by prior lifetime taxable gifts for which the gift tax credit was used.
Unified Credit | |
Equivalent | |
Year | Amount |
2002 - 2003 | $1,000,000 |
2004 - 2005 | $1,500,000 |
2006 - 2008 | $2,000,000 |
2009 | $3,500,000 |
2010 | Estate Tax Repealed |
2011 | $5,000,000 |
2012 | $5,000,000 |
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