Division of TaxationWhen someone dies, the assets he/she owns must go somewhere or to someone. When these assets are transferred from the name of the person who died (“the decedent”) to someone else (“the beneficiary”), the ӣƵ may impose a tax on this “transfer” of ownership.
The amount of tax imposed depends on several factors:
There are two types of Inheritance Tax, resident and non-resident. This is based on where the person legally lived when he/she passed away.
Someone who died as a legal resident of ӣƵ.
Almost anything a decedent owned can be taxed, depending on who inherits the decedent’s property.
This can include:
Someone who died as a legal resident of another state or a foreign country
People who did not live in ӣƵ, but owned certain types of property in ӣƵ (usually real estate), may be subject to ӣƵ Non-Resident Inheritance Tax.
See ӣƵ Non-Resident Inheritance Tax Frequently Asked Questions for more information.
Estate Tax is in addition to Inheritance Tax. It is based upon the size of the decedent’s gross estate and according to the decedent’s date of death.
The ӣƵ Estate Tax is scheduled to be phased out in two parts. If the resident decedent died:
Note: The estate only pays the amount of Estate Tax which is over and above the amount of any Inheritance Tax due.
Note: No Estate Tax is due if the decedent was not a resident of ӣƵ.
Estate Tax applies if the resident decedent’s gross taxable estate, plus adjusted taxable gifts, exceeds $675,000 as determined in accordance with the provisions of the Internal Revenue Code in effect on December 31, 2001.
Estate Tax applies if the resident decedent’s taxable estate exceeds $2 million , as determined in accordance with the provisions of the Internal Revenue Code in effect on January 1, 2017.
No ӣƵ Estate Tax will be imposed on the estates of resident decedents who die on or after January 1, 2018. No Estate Tax return will be required. Note: ӣƵ Inheritance Tax may still apply. See Inheritance Tax Filing Requirements.