What Does the 2014 Estate Tax Rate Chart Show?

What Does the 2014 Estate Tax Rate Chart Show?

The 2014 estate tax rate chart shows that the Internal Revenue Service imposes an 18 percent tax rate on estates worth up to $10,000, with rates increasing as the value of an estate rises, notes benefits advisory firm Chernoff Diamond. Estates worth between $10,001 and $20,000 attract a 20 percent tax rate, while those possessing a value of $1,000,001 or more attract a 40 percent rate.

The 2014 estate tax rate chart also shows that the IRS levies a 22 percent tax on estates worth between $20,001 and $40,000 and a 24 percent rate for estates with a value of between $40,001 and $60,000, reports Chernoff Diamond. In general, the 2014 estate tax rate chart shows the tax rate rising by 2 percent per tier.

For instance, estates on the $60,001 to $80,000 tier attract a 26 percent rate, with the rate rising by 2 percent for estates possessing a value between $80,001 and $100,000, explains Chernoff Diamond. The rate hits 30 percent for estates worth between $100,001 and $150,000, rises to 32 percent for estates possessing values between $150,001 and $250,000, and increases by 2 percent for estates worth between $250,001 and $500,000.

Only two other levels lie between that and the $1,000,001 tier; the $500,001 to $750,000 tier, which attracts a 37 percent tax rate, and the $750,001 to $1 million tier, on which the IRS imposes a 39 percent tax rate, according to Chernoff Diamond.