Policy and Taxation Group State Death Tax Chart March 18, 2018 This chart is maintained for the Policy and Taxation Group Website and is updated regularly. Any comments on the chart or new developments that should be reflected on the chart may be sent to [email protected]. Type of Tax Effect of EGTRRA on Pick-up Tax and Size of Gross Estate Legislation Affecting State Death Tax 2018 State Death Tax Threshold Alabama None Tax is tied to federal state death tax credit. AL ST § 40-15-2. Alaska None Tax is tied to federal state death tax credit. AK ST § 43.31.011. Arizona None Tax was tied to federal state death tax credit. AZ ST §§ 42-4051; 42- 4001(2), (12). On May 8, 2006, Governor Napolitano signed SB 1170 which permanently repealed Arizona’s state estate tax. Arkansas None Tax is tied to federal state death tax credit. AR ST § 26-59-103; 26- 59-106; 26-59-109, as amended March, 2003. California None Tax is tied to federal state death tax credit. CA REV & TAX §§ 13302; 13411. Colorado None Tax is tied to federal state death tax credit. CO ST §§ 39-23.5-103; 39-23.5- 102. Connecticut Separate Estate Tax As part of the two year budget which became law on September 8, 2009, the exemption for the On October 31, 2017, the Connecticut Governor $2,600,000
Transcript
Policy and Taxation Group State Death Tax Chart
March 18, 2018
This chart is maintained for the Policy and Taxation Group Website and is updated regularly.Any comments on the chart or new developments that should be reflected on the chart may besent to [email protected].
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Alabama None Tax is tied to federal statedeath tax credit.AL ST § 40-15-2.
Alaska None Tax is tied to federal statedeath tax credit.AK ST § 43.31.011.
Arizona None Tax was tied to federalstate death tax credit.AZ ST §§ 42-4051; 42-4001(2), (12).
On May 8, 2006,Governor Napolitanosigned SB 1170 whichpermanently repealedArizona’s state estate tax.
Arkansas None Tax is tied to federal statedeath tax credit.AR ST § 26-59-103; 26-59-106; 26-59-109, asamended March, 2003.
California None Tax is tied to federal statedeath tax credit. CAREV & TAX §§ 13302;13411.
Colorado None Tax is tied to federal statedeath tax credit. CO ST§§ 39-23.5-103; 39-23.5-102.
Connecticut SeparateEstate Tax
As part of the two yearbudget which became lawon September 8, 2009, theexemption for the
separate estate and gifttaxes was increased to$3.5 million, effectiveJanuary 1, 2010, the taxrates were reduced to aspread of 7.2% to 12%,and effective fordecedents dying on orafter January 1, 2010, theConnecticut tax is due sixmonths after the date ofdeath. CT ST § 12-391.In May 2011, thethreshold was lowered to$2 million retroactive toJanuary 1, 2011.
signed the2018-2019budget whichincreased theexemption fortheConnecticutstate estate andgift tax to$2,600,000 in2018, to$3,600,000 in2019, and tothe federalestate and gifttax exemptionin 2020.
Beginning in2019, the capon theConnecticutstate estate andgift tax isreduced from$20 million to$15 million(whichrepresents thetax due on aConnecticutestate ofapproximately$129 million).
Delaware None On July 2, 2017, theGovernor signed HB 16which sunsets theDelaware Estate Tax onDecember 31, 2017.
District ofColumbia
Pick-upOnly
As a result of 2015legislation as modified in2017, the threshold will
$11,180,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
match federal exemptionas it is indexed forinflation beginning in2018. DC CODE 47-3701(14)
No separate state QTIPelection.
Florida None Tax is tied to federal statedeath tax credit.FL ST § 198.02; FLCONST. Art. VII, Sec. 5
Georgia None Effective July 1, 2014,the Georgia estate tax wasrepealed. See § 48-12-1.
Hawaii ModifiedPick-upTax
Tax was tied to federalstate death tax credit.HI ST §§ 236D-3; 236D-2; 236D-B
The Hawaii Legislatureon April 30, 2010overrode the Governor’sveto of HB 2866 toimpose a Hawaii estatetax on residents and alsoon the Hawaii assets of anon-resident or a non UScitizen.
On May 2,2012, theHawaiilegislaturepassed HB2328whichconforms theHawaii estatetax exemptionto the federalestate taxexemption fordecedentsdying afterJanuary 25,2012.
$11,180,000
Idaho None Tax is tied to federal statedeath tax credit.ID ST §§ 14-403; 14-402;63-3004 (as amendedMar. 2002).
Illinois ModifiedPick-upOnly
On January 13, 2011,Governor Quinn signedPublic Act 096-1496which increased Illinois’individual and corporateincome tax rates.
$4,000,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Included in the Act wasthe reinstatement ofIllinois’ estate tax as ofJanuary 1, 2011 with a $2million exemption.
Senate Bill 397 passedboth the Illinois Houseand Senate as part of thetax package for Sears andCME on December 13,2011. It increased theexemption to $3.5 millionfor 2012 and $4 millionfor 2013 and beyond.Governor Quinn signedthe legislation onDecember 16, 2011.
Illinois permits a separatestate QTIP election,effective September 8,2009. 35 ILCS 405/2(b-1).
Indiana None Pick-up tax is tied tofederal state death taxcredit.IN ST §§ 6-4.1-11-2; 6-4.1-1-4.
On May 11,2013,GovernorPence signedHB 1001which repealedIndiana’sinheritance taxretroactively toJanuary 1,2013. ThisreplacedIndiana’s priorlaw enacted in2012 whichphased outIndiana’sinheritance tax
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
over nine yearsbeginning in2013 andending onDecember 31,2021 andincreased theinheritance taxexemptionamountsretroactive toJanuary 1,2012.
Iowa InheritanceTax
Pick-up tax is tied tofederal state death taxcredit. IA ST § 451.2;451.13. Effective July 1,2010, Iowa specificallyreenacted its pick-upestate tax for decedentsdying after December 31,2010. Iowa Senate File2380, reenacting IA ST §451.2.
Iowa has a separateinheritance tax ontransfers to others thanlineal ascendants anddescendants.
Kansas None For decedents dying on orafter January 1, 2007 andthrough December 31,2009, Kansas had enacteda separate stand aloneestate tax. KS ST § 79-15, 203
Kentucky InheritanceTax
Pick-up tax is tied tofederal state death taxcredit. KY ST § 140.130.
Kentucky has not
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
decoupled but has aseparate inheritance taxand recognizes byadministrativepronouncement a separatestate QTIP election.
Louisiana None Pick-up tax is tied tofederal state death taxcredit. LA R.S. §§47:2431; 47:2432;47:2434.
Maine Pick-upOnly
For decedents dying afterDecember 31, 2002, pick-up tax was frozen at pre-EGTRRA federal statedeath tax credit, andimposed on estatesexceeding applicableexclusion amount ineffect on December 31,2000 (includingscheduled increases underpre-EGTRRA law) (L.D.1319; March 27, 2003).
On June 20, 2011,Maine's governor signedPublic Law Chapter 380into law, which willincrease the Maine estatetax exemption to $2million in 2013 andbeyond. The rates werealso changed, effectiveJanuary 1, 2013, to 0%for Maine estates up to $2million, 8% for Maineestates between $2million and $5 million, 10% between $ 5 millionand $8 million and 12%
Maine does notappear to havepicked up theamendmentsmade in the2017 federaltax reform act.For estates ofdecedentsdying on orafter January 1,2016, the“Maineexclusionamount “meansthe basicexclusionamountdetermined forthe calendaryear inaccordancewith Section2010(c)(3) ofthe “Code.” 36M.R.S. §4102(5).However,Maine’s taxlaw defines
$5,600,000Estimated
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
for the excess over $8million.
On June 30, 2015, theMaine legislatureoverrode the Governor’sveto of LD 1019, thebudget bill for fiscal years2016 and 2017. As partof the new law, the MaineExemption is tagged tothe federal exemption fordecedents dying on orafter January 1, 2016.
The tax rates will be:
8% on the first $3 millionabove the MaineExemption;
10% on the next $3million above the MaineExemption; and
!2% on all amounts above$6 million above theMaine Exemption.
The new legislation didnot include portability aspart of the Maine EstateTax.
For estates of decedentsdying after December 31,2002, Sec. 2058deduction is ignored incomputing Maine tax anda separate state QTIPelection is permitted.M.R.S. Title 36, Sec.
“Code” as theUnited StatesInternalRevenue Codeof 1986 andanyamendments tothat Code as ofDecember 31,2016.
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
4062.Maine also subjects realor tangible propertylocated in Maine that istransferred to a trust,limited liability companyor other pass-throughentity to tax in a nonresident’s estate. M.R.S.Title 36, Sec. 4064.
Maryland Pick-upTax
InheritanceTax
On May 15, 2014,Governor O’Malleysigned HB 739 whichrepealed and reenactedMD TAX GENERAL §§7-305, 7-309(a), and 7-309(b) to do thefollowing:
1. Increases thethreshold for theMaryland estatetax to $1.5 millionin 2015, $2million in 2016,$3 million in2017, and $4million in 2018.For 2019 andbeyond, theMarylandthreshold willequal the federalapplicableexclusion amount.
2. Continues to limitthe amount of thefederal credit usedto calculate theMaryland estate
$4,000,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
tax to 16% of theamount by whichthe decedent’staxable estateexceeds theMarylandthreshold unlessthe Section 2011federal state deathtax credit is thenin effect.
3. Continues toignore the federaldeduction for statedeath taxes underSec. 2058 incomputingMaryland estatetax, thuseliminating acircularcomputation.
4. Permits a stateQTIP election.
Massachu-setts
Pick-upOnly
For decedents dying in2002, pick-up tax is tiedto federal state death taxcredit. MA ST 65C §§2A.
For decedents dying on orafter January 1, 2003,pick-up tax is frozen atfederal state death taxcredit in effect onDecember 31, 2000. MAST 65C §§ 2A(a), asamended July 2002.
$1,000,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Tax imposed on estatesexceeding applicableexclusion amount ineffect on December 31,2000 (includingscheduled increases underpre-EGTRRA law), evenif that amount is belowEGTRRA applicableexclusion amount.See, Taxpayer AdvisoryBulletin (Dec. 2002),DOR Directive 03-02,Mass. Guide to EstateTaxes (2003) and TIR 02-18 published by Mass.Dept. of Rev.
MassachusettsDepartment of Revenuehas issued directive,pursuant to whichseparate MassachusettsQTIP election can bemade when applyingstate’s new estate taxbased upon pre-EGTRRAfederal state death taxcredit.
Michigan None Tax is tied to federal statedeath tax credit.MI ST §§ 205.232;205.256
Minnesota Pick-upOnly
Tax frozen at federal statedeath tax credit in effecton December 31, 2000,clarifying statute passedMay 2002.
Tax imposed on estatesexceeding federal
On May 30,2017, thegovernorsigned thebudget bill,H.F. No. 1whichincreased the
$2,400,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
applicable exclusionamount in effect onDecember 31, 2000(including scheduledincreases under pre-EGTRRA law), even ifthat amount is belowEGTRRA applicableexclusion amount.MN ST §§ 291.005;291.03; instructions forMS Estate Tax Return;MN Revenue Notice 02-16.
A provisionenacted in2013 to imposean estate tax onnon-residentswho own aninterest in apass-throughentity which inturn owned realor personalproperty inMinnesota wasamended in2014 toexclude certainpublicly tradedentities. It stillapplies toentities taxedas partnershipsor SCorporationsthat ownclosely held
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
businesses,farms, andcabins.
Mississippi None Tax is tied to federal statedeath tax credit.MS ST § 27-9-5.
Missouri None Tax is tied to federal statedeath tax credit.MO ST §§ 145.011;145.091.
Montana None Tax is tied to federal statedeath tax credit.MT ST § 72-16-904; 72-16-905.
Nebraska CountyInheritanceTax
Nebraska through 2006imposed a pick-up tax atthe state level. Countiesimpose and collect aseparate inheritance tax.
NEB REV ST § 77-2101.01(1).
Nevada None Tax is tied to federal statedeath tax credit.NV ST Title 32 §§375A.025; 375A.100.
NewHampshire
None Tax is tied to federal statedeath tax credit.NH ST §§ 87:1; 87:7.
New Jersey InheritanceTax
For decedents dying afterDecember 31, 2002, pick-up tax frozen at federalstate death tax credit ineffect on December 31,2001. NJ ST § 54:38-1
Pick-up tax imposed onestates exceeding federalapplicable exclusionamount in effect
On October 14,GovernorChristie signedAssembly BillA-12 whichwas the tax billaccompanyingthe AssemblyBill A-10which revisedthe funding for
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
December 31, 2001($675,000), not includingscheduled increases underpre-EGTRRA law, eventhough that amount isbelow the lowestEGTRRA applicableexclusion amount.
The exemption will beincreased to $2 million in2017 and the pick-up tax,but the inheritance tax,will be eliminated as ofJanuary 1, 2018.
The executor has theoption of paying theabove pick-up tax or asimilar tax prescribed bythe NJ Dir. Of Div. ofTaxn. NJ ST § 54:38-1;approved on July 1, 2002.
In Oberhand v. Director,Div. of Tax, 193 N.J. 558(2008), the retroactiveapplication of NewJersey's decoupled estatetax to the estate of adecedent dying prior tothe enactment of the taxwas declared "manifestlyunjust", where the willincluded marital formulaprovisions.
In Estate of Stevenson v.Director, 008300-07(N.J.Tax 2-19-2008) theNJ Tax Court held that incalculating the New
the state’sTransportationFund. Underthis new law,the Pick-UpTax will have a$2 millionexemption in2017 and willbe eliminatedas of January 1,2018. The newlaw alsoeliminates thetax on NewJersey real andtangibleproperty of anon-residentdecedent.
The repeal ofthe pick-up taxdoes not applyto the separateNew Jerseyinheritance tax.
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Jersey estate tax where amarital disposition wasburdened with estate tax,creating an interrelatedcomputation, the maritaldeduction must bereduced not only by theactual NJ estate tax, butalso by the hypotheticalfederal estate tax thatwould have been payableif the decedent had diedin 2001.
New Jersey allows aseparate state QTIPelection when a federalestate tax return is notfiled and is not requiredto be filed.
The New JerseyAdministrative Code alsorequires that if the federaland state QTIP election ismade, they must beconsistent. NJAC 18:26-3A.8(d)
New Mexico None Tax is tied to federal statedeath tax credit.NM ST §§ 7-7-2; 7-7-3.
New York Pick-upOnly
Tax frozen at federal statedeath tax credit in effecton July 22, 1998.NY TAX § 951.
Governor signed S. 6060in 2004 which appliesNew York Estate Tax ona pro rata basis to non-resident decedents with
The ExecutiveBudget of2014-2015which wassigned byGovernorCuomo onMarch 31,2014 madesubstantial
$5,250,000April 1,2017throughDecember31, 2018)
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
property subject to NewYork Estate Tax.
On March 16, 2010, theNew York Office of TaxPolicy Analysis,Taxpayer GuidanceDivision issued a noticepermitting a separate stateQTIP election when nofederal estate tax return isrequired to be filed suchas in 2010 when there isno estate tax or when thevalue of the gross estateis too low to require thefiling of a federal return.See TSB-M-10(1)M.
Advisory Opinion (TSB-A-08(1)M (October 24,2008) provides that aninterest in an SCorporation owned by anon-resident andcontaining acondominium in NewYork is an intangibleasset as long as the SCorporation has a realbusiness purpose. If the SCorporation has nobusiness purpose, itappears that New Yorkwould look through the SCorporation and subjectthe condominium to NewYork estate tax in theestate of the non-resident.There would likely be nobusiness purpose if thesole reason for forming
changes toNew York’sestate tax.
The New Yorkestate taxexemptionwhich was$1,000,000through March31, 2014 hasbeen increasedas follows:
April 1, 2014to March 31,2015 --$2,062,500
April 1, 2015to March 31,2016 --$3,125,000
April 1, 2016to March 31,2017 --$4,187,500
April 1, 2017to December31, 2018 --$5,250,000
As of January1, 2019, theNew Yorkestate taxexemptionamount will bethe same as thefederal estate
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
the S Corporation was toown assets.
tax applicableexclusionamount.
The maximumrate of tax willcontinue to be16%.
Taxable giftswithin threeyears of deathbetween April1, 2014 andDecember 31,2018 will beadded back to adecedent’sestate forpurposes ofcalculating theNew York tax.
The New Yorkestate tax willbe a cliff tax.If the value ofthe estate ismore than105% of thethen currentexemption, theexemption willnot beavailable.
On April 1,2015, as part of2015-2016ExecutiveBudget, NewYork enacted
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
changes to theNew YorkEstate Tax.New York firstclarified thatthe new ratescheduleenacted in2014 applies toall decedentsdying afterApril 1, 2014.Previously, therate scheduleonly appliedthrough March31, 2015. NewYork thenmodified thethree year giftadd-backprovision tomake it clearthat the giftadd-back doesnot apply toany individualsdying on orafter January 1,2019.Previously, thegift add-backprovision didnot apply togifts made onor after January1, 2019.
New Yorkcontinues tonot permitportability for
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
New Yorkestates and noQTIP electionis allowed.
NorthCarolina
None On July 23,2013, theGovernorsigned HB 998which repealedthe NorthCarolina estatetaxretroactively toJanuary 1,2013.
North Dakota None Tax is tied to federal statedeath tax credit.ND ST § 57-37.1-04
Ohio None Governor Taft signed thebudget bill, 2005 HB 66,repealing the Ohio estate(sponge) taxprospectively andgranting credit for itretroactively. This waseffective June 30, 2005and killed the sponge tax.
On June 30, 2011,Governor Kasich signedHB 153, the biannualbudget bill, whichcontained a repeal of theOhio state estate taxeffective January 1, 2013.
Oklahoma None Tax is tied to federal statedeath tax credit.OK ST Title 68 § 804
The separate estate taxwas phased out as of
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
January 1, 2010.Oregon Separate
Estate TaxOn June 28, 2011,Oregon’s governor signedHB 2541 which replacesOregon’s pick-up taxwith a stand-alone estatetax effective January 1,2012.The new tax has a $1million threshold withrates increasing from tenpercent to sixteen percentbetween $1 million and$9.5 million.
Determination of theestate for Oregon estatetax purposes is basedupon the federal taxableestate with adjustments.
$1,000,000
Pennsylvania InheritanceTax
Tax is tied to the federalstate death tax credit tothe extent that theavailable federal statedeath tax credit exceedsthe state inheritance tax.PA ST T. 72 P.S. § 9117amended December 23,2003.
Pennsylvania haddecoupled its pick-up taxin 2002, but has nowrecoupled retroactively.The recoupling does notaffect the Pennsylvaniainheritance tax which isindependent of the federalstate death tax credit.
Pennsylvania recognizesa state QTIP election.
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Rhode Island Pick-upOnly
Tax frozen at federal statedeath tax credit in effecton January 1, 2001, withcertain adjustments (seebelow). RI ST § 44-22-1.1.
Rhode Island recognizeda separate state QTIPelection in the State’s TaxDivision Ruling RequestNo. 2003-03.
Rhode Island's Governorsigned into law HB 5983on June 30, 2009,effective for deathsoccurring on or afterJanuary 1, 2010, anincrease in the amountexempt from RhodeIsland estate tax from$675,000, to $850,000,with annual adjustmentsbeginning for deathsoccurring on or afterJanuary 1, 2011 based on"the percentage ofincrease in the ConsumerPrice Index for all UrbanConsumers (CPI-U). . .rounded up to the nearestfive dollar ($5.00)increment." RI ST § 44-22-1.1.
On June 19,2014, theRhode IslandGovernorapprovedchanges to theRhode IslandEstate Tax byincreasing theexemption to$1,500,000indexed forinflation in2015 andeliminating thecliff tax.
$1,537,656
SouthCarolina
None Tax is tied to federal statedeath tax credit.SC ST §§ 12-16-510; 12-16-20 and 12-6-40,amended in 2002.
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
South Dakota None Tax is tied to federal statedeath tax credit.SD ST §§ 10-40A-3; 10-40A-1 (as amended Feb.2002).
Tennessee None Pick-up tax is tied tofederal state death taxcredit.TN ST §§ 67-8-202; 67-8-203.
Tennessee had a separateinheritance tax which wasphased out as of January1, 2016.
On May 2,2012, theTennesseelegislaturepassed HB3760/SB 3762which phasedout theTennesseeInheritanceTax as ofJanuary 1,2016. TheTennesseeInheritanceTax Exemptionwas increasedto $1.25million in2013, $2million in2014, and $5million in2015.
On May 2,2012, theTennesseelegislature alsopassed HB2840/SB2777which repealedthe Tennesseestate gift taxretroactive toJanuary 1,2012.
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
Texas None Tax was permanentlyrepealed effective as ofSeptember 15, 2015 whenChapter 211 of the TexasTax Code was repealed.Prior to September 15,2015, the tax was tied tothe federal state death taxcredit.
Utah None Tax is tied to federal statedeath tax credit.UT ST § 59-11-102; 59-11-103.
Vermont ModifiedPick-up
In 2010, Vermontincreased the estate taxexemption threshold from$2,000,000 to $2,750,000for decedents dyingJanuary 1, 2011. As ofJanuary 1, 2012 theexclusion is scheduled toequal the federal estatetax applicable exclusion,so long as the FETexclusion is not less than$2,000,000 and not morethan $3,500,000. VT STT. 32 § 7442a.
Previously the estate taxwas frozen at federal statedeath tax credit in effecton January 1, 2001. VTST T. 32 §§ 7402(8),7442a, 7475, amended onJune 21, 2002.
No separate state QTIPelection permitted.
$2,750,000
Virginia None Tax is tied to federal statedeath tax credit.VA ST §§ 58.1-901;
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
58.1-902.
The Virginia tax wasrepealed effective July 1,2007. Previously, the taxwas frozen at federal statedeath tax credit in effecton January 1, 1978. Taxwas imposed only onestates exceedingEGTRRA federalapplicable exclusionamount. VA ST §§ 58.1-901; 58.1-902.
Washington SeparateEstate Tax
On February 3, 2005, theWashington StateSupreme Courtunanimously held thatWashington’s state deathtax was unconstitutional.The tax was tied to thecurrent federal state deathtax credit, thus reducingthe tax for the years 2002- 2004 and eliminating itfor the years 2005 - 2010.Hemphill v. StateDepartment of Revenue2005 WL 240940 (Wash.2005).
In response to Hemphill,the Washington StateSenate on April 19 andthe Washington House onApril 22, 2005, by narrowmajorities, passed astand-alone state estatetax with rates rangingfrom 10% to 19%, a $1.5million exemption in2005 and $2 million
On June 14,2013,GovernorInslee signedHB 2075which closedan exemptionfor maritaltrustsretroactivelyimmediatelyprior to whenthe Departmentof Revenuewas about tostart issuingrefund checks,created adeduction forup to $2.5million forcertain familyownedbusinesses andindexes the $2millionWashingtonstate death tax
$2,193,000
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
thereafter, and adeduction for farms forwhich a Sec. 2032Aelection could have beentaken (regardless ofwhether the election ismade). The Governorsigned the legislation.WA ST §§ 83.100.040;83.100.020.
Washington votersdefeated a referendum torepeal the Washingtonestate tax in theNovember 2006elections.
Washington permits aseparate state QTIPelection. WA ST§83.100.047.
threshold forinflation.
West Virginia None Tax is tied to federal statedeath tax credit.WV § 11-11-3.
Wisconsin None Tax is tied to federal statedeath tax credit. WI ST §72.01(11m).
For deaths occurring afterSeptember 30, 2002, andbefore January 1, 2008,tax was frozen at federalstate death tax credit ineffect on December 31,2000 and was imposed onestates exceeding federalapplicable exclusionamount in effect onDecember 31, 2000($675,000), not includingscheduled increases under
Type ofTax
Effect of EGTRRA onPick-up Tax and Size of
Gross Estate
LegislationAffecting
State DeathTax
2018 StateDeath TaxThreshold
pre-EGTRRA law, eventhough that amount isbelow the lowestEGTRRA applicableexclusion amount.Thereafter, tax imposedonly on estates exceedingEGTRRA federalapplicable exclusionamount.WI ST §§ 72.01; 72.02,amended in 2001; WIDept. of Revenuewebsite.
On April 15, 2004, theWisconsin governorsigned 2003 Wis. Act258, which provided thatWisconsin will notimpose an estate tax withrespect to the intangiblepersonal property of anon-resident decedentthat has a taxable situs inWisconsin even if thenon-resident’s state ofdomicile does not imposea death tax. Previously,Wisconsin would imposean estate tax with respectto the intangible personalproperty of a non-residentdecedent that had ataxable situs in Wisconsinif the state of domicile ofthe non-resident had nostate death tax.
Wyoming None Tax is tied to federal statedeath tax credit.WY ST §§ 39-19-103;39-19-104.
