Planning Briefs
Federal Estate Tax Reduced, But What About State Taxes?
Published Wednesday, January 18, 2017 at: 7:00 AM EST
The IRS has increased the federal estate tax exemption, which is indexed annually for inflation, to $5.49 million for 2017, up from $5.45 million in 2016. That lets couples now shield as much as $10.98 million from federal estate tax.
Depending on where you live, you still might have to worry about estate and inheritance taxes on the state level. But there's more good news: Nine states have enacted changes in these taxes to reduce the tax bite for some families in 2017.
In New Jersey, which long has had only a $675,000 exemption from state estate tax, the amount will increase to $2 million in 2017 before the tax goes away in 2018. But a state inheritance tax for heirs who aren't direct descendants still applies. In Maryland, meanwhile, the state exemption rises to $3 million; in Minnesota, to $1.7 million; and in New York, to $5.25 million (effective April 1, 2017). Rhode Island and Washington are indexing their exemptions for inflation. Finally, Delaware, Hawaii, and Maine will match the federal exemption amount.
© 2024 Advisor Products Inc. All Rights Reserved.
More articles
- Tax Rules For Collectible Donations
- 5 'Other' Retirement Saving Ideas
- New Opportunity For Stand-Alone HRAs
- Online Survey Shows Split In Funding Home Down Payment
- IRS Applies IRA Rollover Limit To Coverdell ESAs
- Swap Munis To Your Tax Advantage
- This Type Of Trust Is A Failure
- What Are The Main Items On Trump's Tax Reform Agenda?
- Set Aside The Funds You Might Need For A Rainy Day
- Why Would You Take Your RMDs Sooner?
- Tax Rewards For Charitable Trusts
- Retiring Abroad? Be Ready To Take The Bad With The Good
- Tune Into The Tax Break For NUA
- Tax Rewards For Year-End Generosity
- Easier Rules On IRA Rollover Waivers