Death and Taxes Part II – State Taxes

Editors Note:  Check out the first in this series here! In the past, estate taxes were generally considered a barrier to the preservation of family farms. But over the past several years changes in estate tax laws at the federal level have improved things. The estate tax was set at more than $5 million and is tied to inflation. The $5.25 million level per individual does remove the federal estate tax threat from the vast majority of family size farms. But while this is something to celebrate, there remains a sizable tax threat if one's farm is located in a number of states that tax estates and inheritance amounts. If there is one rule among the various states that tax estates, that rule would be there is no consistent rule. Here's a table listing state estate taxes for various states. Please note that there are some states that not only tax estates but also tax amounts inherited. The amounts that are exempt from estate taxes, range from having the total amount of an estate taxed in Iowa and Pennsylvania to an exemption of $5.25 million in Delaware and Hawaii, who have tied their estate tax to the federal level. The maximum tax rate ranges from 9.5% in Tennessee to 18% in Nebraska. Therefore, depending upon what state you reside in, family farms need to be aware that they may be subject to substantial unexpected estate taxes, especially if they thought the federal tax has been fixed. What is not included in the above table are variations in exemptions in each sta

All the grazing management tips you need

Choose one of our subscription options to read this article and over 2,500 more!

Subscribe today!

If you're already a subscriber, log in here.

Translate »