Federal Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top estate tax rate |
40% | 40% |
|
Top gift tax rate |
40% | 40% |
|
Top generation-skipping tax (GST) rate |
40% | 40% |
|
Annual gift tax exclusion per donee The gift tax exclusion per donee is subject to an inflation adjustment, which has been determined for 2023 and 2024. |
$17,000 | $18,000 |
|
Applicable lifetime gift tax exemption The 2023 exemption is made up of $10,000,000 of basic exclusion and $2,920,000 of inflation adjustment. For 2024, the basic exclusion is $10,000,000 and $3,610,000 of inflation adjustment. |
$12,920,000 | $13,610,000 |
|
Applicable estate tax exemption The 2023 exemption is made up of $10,000,000 of basic exclusion and $2,920,000 of inflation adjustment. For 2024, the basic exclusion is $10,000,000 and $3,610,000 of inflation adjustment. The exemption amount does not reflect “portability,” which is the ability of a surviving spouse to utilize the unused estate exemption of a spouse who died in or after 2011. |
$12,920,000 | $13,610,000 |
|
Applicable generation-skipping tax (GST) exemption The 2023 exemption is made up of $10,000,000 of basic exclusion and $2,920,000 of inflation adjustment. For 2024, the basic exclusion is $10,000,000 and $3,610,000 of inflation adjustment. |
$12,920,000 | $13,610,000 |
|
Transfers to a US citizen spouse during life or at death |
Unlimited | Unlimited |
|
Annual gift tax exclusion for transfer to non-citizen spouse The 2023 exclusion for transfers to a non-citizen spouse is made up of $100,000 of basic exclusion and $75,000 of inflation adjustment. For 2024, the basic exclusion is $100,000 and $85,000 of inflation adjustment. |
$175,000 | $185,000 |
|
Reporting threshold for gifts received from foreign corporations and partnerships The 2023 reporting threshold for gifts received from foreign corporations and partnerships is made up of $10,000 of basic exclusion and $8,567 of inflation adjustment. For 2024, the basic exclusion is $10,000 and $9,570 of inflation adjustment. |
$18,567 | $19,570 |
|
Reporting threshold for gifts received from non-resident aliens and foreign estates |
$100,000 | $100,000 |
California Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top California estate tax rate—there is no California estate tax |
N/A | N/A |
|
Top California gift tax rate—there is no state gift tax |
N/A | N/A |
Florida Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Florida estate tax rate—there is no Florida estate or inheritance tax |
N/A | N/A |
|
Top Florida gift tax rate—there is no state gift tax |
N/A | N/A |
Illinois Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Illinois estate tax rate |
16% | 16% |
|
Estate tax exemption |
$4,000,000 | $4,000,000 |
|
Top Illinois gift tax rate—there is no state gift tax |
N/A | N/A |
Maryland Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Maryland estate tax rate |
16% | 16% |
|
Estate tax exemption |
$5,000,000 | $5,000,000 |
|
Top Maryland gift tax rate—there is no state gift tax |
N/A | N/A |
Massachusetts Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Massachusetts estate tax rate |
16% | 16% |
|
Estate tax exemption On October 4, 2023, Massachusetts retroactively increased the estate tax exemption from $1,000,000 to $2,000,000 as of January 1, 2023. |
$2,000,000 | $2,000,000 |
|
Top Massachusetts gift tax rate—there is no state gift tax |
N/A | N/A |
New Hampshire Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top New Hampshire estate tax rate—there is no New Hampshire estate or inheritance tax |
N/A | N/A |
|
Top New Hampshire gift tax rate—there is no state gift tax |
N/A | N/A |
New York State Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top New York estate tax (if estate just 5% more than exemption, there is a “cliff” taxing on full value of estate, not just the amount over exemption) |
16% | 16% |
|
Estate tax exemption |
$6,580,000 | $6,940,000 |
|
Top New York gift tax rate—there is no state gift tax Estates of decedents dying on or after January 16, 2019, and before January 1, 2026, will need to add back any taxable gift made during the preceding three-year period ending on the decedent’s date of death. This does not apply to non-residents of NYS or to gifts of real or tangible personal property having an actual situs outside NYS at the time of the gift. Gifts made between January 1, 2019, and January 15, 2019, are not included in the add back. |
N/A | N/A |
Rhode Island Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Rhode Island estate tax rate |
16% | 16% |
|
Estate tax exemption |
$1,733,264 | TBD |
|
Top Rhode Island gift tax rate—there is no state gift tax |
N/A | N/A |
Virginia Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top Virginia estate tax rate—there is no Virginia estate or inheritance tax |
N/A | N/A |
|
Top Virginia gift tax rate—there is no state gift tax |
N/A | N/A |
District of Columbia Transfer Tax Items
| 2023 | 2024 | |
|---|---|---|
|
Top DC estate tax rate |
16% | 16% |
|
Estate tax exemption Effective for persons dying after January 1, 2021, the Estate Tax Exemption is $4,000,000 and increasing each year beginning in 2022 by a cost of living adjustment. |
$4,528,800 | TBD |
|
Top DC gift tax rate—there is no state gift tax |
N/A | N/A |
Questions?
The Nixon Peabody Private Clients group will be pleased to answer any questions you may have. Please do not hesitate to contact us. Thank you.