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In terms of inheritance in the United States, if the inheritance exceeds the lifetime exemption granted by the federal government, the taxpayer will pay three forms of taxes to the federal government: inheritance tax, gift tax or inheritance tax. In the United States, the estate tax varies from state to state, with some states collecting the estate tax or inheritance tax according to state regulations.
Some people have worked hard in China for decades and accumulated a lot of wealth. It is a happy thing to get a green card of the United States.
So, depending on the state tax code, putting your property in the right place can save you a lot of unnecessary taxes.
Today, we’re going to take a look at estate and inheritance taxes in the states.
Estate tax: tax paid by heirs at the rate of tax on the amount of their estate in excess of the exemption.
Inheritance tax: inheritance tax paid on the relationship between the deceased relative and the heir. Generally speaking, there is no need for the husband and wife to pay inheritance tax.
Currently, 15 states and the district of Columbia pay estate tax, while six states pay inheritance tax, including New Jersey and Maryland. The specific tax rate and exemption amount can be referred to figure 1 (where yellow is the state subject to inheritance tax and blue is the state subject to inheritance tax) :
What about the estate tax rates, inheritance tax rates and exemptions in each state?
The highest estate tax:
Washington state has the highest estate tax at 20 percent, and the remaining 11 states have the highest at 16 percent.
Hawaii and Delaware have the largest waivers, matching those of the us federal estate tax.
Minimum exemption amount:
Oregon has the lowest exemption from the estate tax, at $1 million.
Of the six states with inheritance taxes, Nebraska has the highest rate at 18 percent, followed by Kentucky and New Jersey at 16 percent.
New Jersey will eliminate the estate tax from 2018. New York’s 2018 exemption is $5.25 million and will be the same as the federal exemption in 2019.