Inheritance Tax Thresholds
The threshold related to inheritance tax in different states of USA are:
1. Iowa
Exemption: Spouses, lineal ascendants (parents, grandparents, great-grandparents), lineal descendants (children, stepchildren, grandchildren, great-grandchildren), charities (up to $500 exemption).
Tax Rate: Ranges from 2% to 6% for non-exempt beneficiaries. The inheritance tax in Iowa will be repealed in 2025.
2. Kentucky
Exemption: Immediate family members (spouses, parents, children, siblings), other recipients (up to $500 or $1,000 exemption).
Tax Rate: Sliding scale based on inheritance size, with rates ranging from 4% to 16%.
3. Maryland
Exemption: Immediate family (parents, grandparents, spouses, children, grandchildren, siblings), charities (up to $1,000 exemption).
Tax Rate: 10% for non-exempt beneficiaries.
4. Nebraska
Exemption: Spouses, charities, immediate family (up to $100,000 starting in 2023), other relatives (up to $40,000), unrelated heirs (up to $25,000).
Tax Rate: Reduced to 1%, 11%, and 15% in 2023.
5. New Jersey
Exemption: Immediate family (spouse, children, parents, grandparents, grandchildren), charitable organizations, siblings, sons/daughters-in-law (up to $25,000 exemption).
Tax Rate: Ranges from 11% to 16%, based on inheritance size and familial relationship.
6. Pennsylvania
Exemption: Spouse, minor children, adult children, grandparents, parents (up to $3,500 exemption).
Tax Rate: 4.5%, 12%, or 15%, depending on the relationship with the deceased.
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