What Does the IRS Charge for Inheritance Tax?

What Does the IRS Charge for Inheritance Tax?

What Does the IRS Charge for Inheritance Tax?

The IRS does not charge an inheritance tax, but some states do, and the rates range from 1 percent to 20 percent. States that have an inheritance tax are Iowa, Indiana, Maryland and Kentucky. Nebraska, Pennsylvania, New Jersey and Tennessee also have an inheritance tax, but many people are exempt.

Though the IRS doesn't have an inheritance tax on money, it has an estate tax on property. This property can include money, but also includes real estate, annuities, businesses, insurance and other assets. However, a person is not required to file an estate tax return unless the value of the estate exceeds $5,430,000, as of 2015.