An inheritance tax is a tax paid by heirs or beneficiaries of an inheritance, according to Investopedia. An inheritance tax rate depends on the value of the asset received or the relationship to the descendant.
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.
As of 2014, the inheritance tax rates range between 1 percent and 20 percent of the value of property and cash inherited, according to TurboTax. Eight states levied inheritance taxes in 2014, including Indiana, Iowa, Kentucky, Maryland and Nebraska. New Jersey, Pennsylvania and Tennessee also levied
On its website, the Tax Foundation provides a map of inheritance tax rates by state as of the year 2014. There are six states in the United States that use an inheritance tax, the rates of which vary from 0 to18 percent depending on the size of the inheritance.
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
As of 2015, Ohio has no state inheritance tax, reports About.com. Although Ohio had an estate tax, it was repealed with the 2012-2013 budget bill, which became effective Jan. 1, 2013, states the Ohio Department of Taxation.
As of 2015, only six states have an inheritance tax, which taxes heirs based on their relationships to the deceased. Tax rates range from 0 to 10 percent in Maryland; from 0 to 15 percent in Iowa and Pennsylvania; from 0 to 16 percent in Kentucky and New Jersey; and from 0 to 18 percent in Nebraska.
Six states have state inheritance taxes as of 2015. Iowa, Kentucky, Nebraska and Pennsylvania have inheritance taxes only, while Maryland and New Jersey have both estate taxes and inheritance taxes.
As of 2015, Massachusetts does not have an inheritance tax, according to the Tax Foundation. However, Massachusetts does have an estate tax, which ranges between tax rates of 0.8 percent and 16 percent. Estates worth $1 million or less are exempt from the estate tax.
The inheritance or estate tax is a tax on the right to transfer property at the owner's death. The estate's executor or administrator takes an accounting of everything the decedent owned on the date of death, using fair market value. This is the "gross estate" and if, for 2014, it plus any prior tax