The federal government levies no inheritance tax, reports Bankrate. Federal estate tax is levied on gross estates worth more than $5.43 million as of 2015, and the complex returns should be handled by both attorneys and Certified Public Accountants or Enrolled Agents, according to the IRS.
As of 2015, the federal inheritance, or estate, tax rate is 40 percent, according to Bankrate. The first $5.43 million of an estate is exempt and not taxed by the IRS.
The general rule regarding inheritance is that the beneficiary does not pay any federal income tax on the money he inherits as of 2015, according to Intuit. However, the federal government may tax the estate of the deceased if the value exceeds the Internal Revenue Service limits.
A chart for inheritance tax information by state can be found on About.com. This website has a whole section dedicated to information on money and taxes.
Canada does not charge any inheritance tax; however, before distributing money to inheritors, the deceased person's estate must settle final taxes with the Canada Revenue Agency, states TurboTax. These final taxes include capital gains tax on property, bonds and Registered Retirement Savings Plans.
As of 2015, most states don’t levy any inheritance tax, but of the six states that do, Nebraska has the lowest minimum inheritance tax rate at 1 percent, and Maryland has the lowest maximum rate at 10 percent, reports About.com. States base inheritance tax rates that individuals pay on how closely t
The Indiana inheritance tax has been repealed for those individuals dying after Dec. 31st, 2012. Therefore, no current inheritance tax is levied, and no inheritance tax returns need be filed currently. For individuals who died before the repeal date, an inheritance tax return needs to be filed.
Texas does not require a state inheritance tax return on estates with a date of death on or after Jan. 1, 2005, according to the Texas Comptroller of Public Accounts. Thus, a state-level tax is no longer collected in Texas.
As of 2015, Florida does not have an inheritance tax law, explains About.com's Julie Garber. As of Jan 1, 2005, Florida has no estate tax, explains the State of Florida Department of Revenue. Estate's of decedents who passed away before Jan 1, 2005, are subject to estate tax.
Common questions about the Pennsylvania inheritance tax are related to tax rates, availability of discounts and lineal heirs. Other frequently asked questions are about the types of property subject to the tax and where the taxes may be filed.