Gift and Estate Tax: Numbers, numbers, numbers

Federal Transfer Tax Items

	2022	2023
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 2022 and 2023.	$16,000	$17,000
Applicable lifetime gift tax exemption The 2022 lifetime gift tax exemption is made up of $10,000,000 of basic exclusion and $2,600,000 of inflation adjustment. For 2023, the basic exclusion is $10,000,000 and $2,920,000 of inflation adjustment.	$12,060,000	$12,920,000
Applicable estate tax exemption The 2022 lifetime gift tax exemption is made up of $10,000,000 of basic exclusion and $2,600,000 of inflation adjustment. For 2023, the basic exclusion is $10,000,000 and $2,920,000 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.	$12,060,000	$12,920,000
Applicable generation-skipping tax (GST) exemption The 2022 lifetime gift tax exemption is made up of $10,000,000 of basic exclusion and $2,600,000 of inflation adjustment. For 2023, the basic exclusion is $10,000,000 and $2,920,000 of inflation adjustment.	$12,060,000	$12,920,000
Transfers to a spouse during life or at death (U.S. citizens)	Unlimited	Unlimited
Annual gift tax exclusion for transfer to non-citizen spouse The 2022 annual gift tax exclusion for transfers to a non-citizen spouse is made up of $100,000 of basic exclusion and $64,000 of inflation adjustment. For 2023, the basic exclusion is $100,000 and $75,000 of inflation adjustment.	$164,000	$175,000
Reporting threshold for gifts received from foreign corporations and partnerships The 2022 reporting threshold for gifts received from foreign corporations and partnerships is made up of $10,000 of basic exclusion and $7,339 of inflation adjustment. For 2023, the basic exclusion is $10,000 and $8,567 of inflation adjustment.	$17,339	$18,567
Reporting threshold for gifts received from non-resident aliens and foreign estates	$100,000	$100,000

California Transfer Tax Items

	2022	2023
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

	2022	2023
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

	2022	2023
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

	2022	2023
Top Maryland estate tax rate (Inheritance tax rate is 10% with no exemption amount.)	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

2022

2023

Top Maryland estate tax rate

(Inheritance tax rate is 10% with no exemption amount.)

16%

Estate tax exemption

$5,000,000

Top Maryland gift tax rate—there is no state gift tax

N/A

Massachusetts Transfer Tax Items

	2022	2023
Top Massachusetts estate tax rate	16%	16%
Estate tax exemption	$1,000,000	$1,000,000
Top Massachusetts gift tax rate—there is no state gift tax	N/A	N/A

New Hampshire Transfer Tax Items

	2022	2023
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

	2022	2023
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	$6,110,000	$6,580,000
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

2022

2023

Rhode Island Transfer Tax Items

	2022	2023
Top Rhode Island estate tax rate	16%	16%
Estate tax exemption	$1,648,611	$1,733,264
Top Rhode Island gift tax rate—there is no state gift tax	N/A	N/A

Virginia Transfer Tax Items

	2022	2023
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

	2022	2023
Top D.C. estate tax rate	16%	16%
Estate tax exemption Effective for persons dying after January 1, 2021, the Estate Tax Exemption is $4,000,000. It is scheduled to increase each year beginning in 2022 by a cost-of-living adjustment. The 2023 exemption is estimated.	$4,254,800	TBD (estimated to be $4,594,000)
Top D.C. gift tax rate—there is no state gift tax	N/A	N/A

2022

2023

Top D.C. estate tax rate

16%

Estate tax exemption

Effective for persons dying after January 1, 2021, the Estate Tax Exemption is $4,000,000. It is scheduled to increase each year beginning in 2022 by a cost-of-living adjustment. The 2023 exemption is estimated.

$4,254,800

TBD
(estimated to be $4,594,000)

Top D.C. gift tax rate—there is no state gift tax

N/A

Questions?

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