User Rating 0.0
Total Usage 0 times
1. Estate Details
2. Beneficiary Details
Relationship significantly impacts State Inheritance Tax rates.
Is this tool helpful?

Your feedback helps us improve.

About

Transferring wealth after death triggers a complex web of tax liabilities. The "Death Tax" is actually two separate levies: Estate Tax, paid by the estate before distribution, and Inheritance Tax, paid by the beneficiary after receiving the assets. While the US Federal Government only taxes estates exceeding $13.61 million (2024), several states impose their own taxes with much lower thresholds and rates that depend entirely on who you are.

This tool calculates potential liabilities by analyzing the three critical factors: total asset value, jurisdiction (State/Federal rules), and the beneficiary's relationship to the deceased. In many jurisdictions (like Pennsylvania or New Jersey), a brother might pay 12-15% tax while a spouse pays 0%.

inheritance tax estate tax death tax probate heir tax financial planning

Formulas

The calculation follows a tiered bracket system. For Estate Tax:

Tax = {
0 if Value Exemption(Value Exemption) × Rate otherwise

Inheritance tax is calculated on the distributed amount based on Beneficiary Class (e.g., Class A = Linear family, Class C = Collateral/Non-related).

Reference Data

JurisdictionTax Type2024 Exemption ThresholdMax Rate
US FederalEstate Tax$13,610,00040%
ConnecticutEstate Tax$13,610,00012%
HawaiiEstate Tax$5,490,00020%
IllinoisEstate Tax$4,000,00016%
KentuckyInheritance TaxDepends on Class16%
MassachusettsEstate Tax$2,000,00016%
New JerseyInheritance Tax$0 (Class C/D)16%
New YorkEstate Tax$6,940,00016%
OregonEstate Tax$1,000,00016%
PennsylvaniaInheritance Tax$015%
WashingtonEstate Tax$2,193,00020%

Frequently Asked Questions

Estate Tax is levied on the total value of the deceased's assets *before* they are distributed. It is paid by the estate. Inheritance Tax is levied on the specific amount received by a beneficiary *after* distribution. It is paid by the person inheriting the money.
In the vast majority of US jurisdictions (Federal and State), transfers to a surviving spouse are 100% exempt from both Estate and Inheritance taxes due to the Unlimited Marital Deduction.
This is a tax advantage where the value of an inherited asset (like a house or stock) is adjusted to its fair market value at the date of death. If you sell it immediately, you owe little to no Capital Gains tax, regardless of what the original owner paid for it.