The Economic Growth and Tax Relief Reconciliation Act of 2001 enacted a schedule of federal estate tax and gift tax rate reductions that apply to tax years from 2002 to 2010. The Act repeals the federal estate tax as of 2010, but provides for the continuation of the gift tax, so the 2010 schedule below applies to federal gift tax only.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRUIRJC) created a new unified federal estate and gift tax schedule for 2011-2012. The American Taxpayer Relief Act of 2012 made permanent a revised and still unified federal estate and gift tax schedule for 2013 and beyond.
Unified Gift and Estate Tax Rate Schedule: 1988 -2001
Computing federal estate tax
To compute the federal estate tax due on a gift, you need to know the amount of the taxable estate and the donor's prior taxable gifts.
For example, if a taxpayer has a taxable estate of $5,000,000 in 2006 and has made $400,000 in taxable gifts in the past, the estate tax would be computed as follows:
Add prior taxable gifts: $5,000,000 + $400,000 = $5,400,000
Tentative tax (from 2006 table) = tax on $5,400,000 = ($5,400,000 - $2,000,000) x .46 + $780,800 = $2,344,800
Estate tax (from 2006 table) = tentative tax – estate tax credit = $2,344,800 - $780,800 = $1,564,000
Computing federal gift tax
To compute the federal gift tax due on a gift, you need to know the amount of the gift, the amount of annual gift tax exclusion available to use against it, the amount of other taxable gifts made during the same year, and the donor's prior taxable gifts.
For example, if a taxpayer makes a gift of $1,000,000 to a child in 2006, applies $12,000 in annual gift tax exclusion, makes no other taxable gifts during the same year, and has made $400,000 in taxable gifts in the past, the gift tax would be computed as follows:
Taxable gift = $1,000,000 – 12,000 = $988,000
Add prior taxable gifts: $988,000 + $400,000 = $1,388,000
Tentative tax = tax on $1,388,000 = ($1,388,000 - $1,250,000) x .43 + $448,300 = $507,640
Gift tax = tentative tax – gift tax credit = $507,640 - $345,800 = $161,840
Gift and Estate Tax Rate Schedule in 2002
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
|
2,000,000 |
780,800 |
49 |
|
2,500,000 |
1,025,800 |
50 |
Top estate tax bracket = 50%
Gift and Estate Tax Rate Schedule in 2003
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
|
2,000,000 |
780,800 |
49 |
Top estate tax bracket = 49%
Gift and Estate Tax Rate Schedule in 2004
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
|
2,000,000 |
780,800 |
48 |
Top estate tax bracket = 48%
Gift and Estate Tax Rate Schedule in 2005
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
|
2,000,000 |
780,800 |
47 |
Top estate tax bracket = 47%
Gift and Estate Tax Rate Schedule in 2006
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
|
2,000,000 |
780,800 |
46 |
Top estate tax bracket = 46%
Gift and Estate Tax Rate Schedule in 2007-2009
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37 |
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
41 |
|
1,250,000 |
448,300 |
43 |
|
1,500,000 |
555,800 |
45 |
Top estate tax bracket = 45%
Federal Estate Tax repealed as of 2010. Schedule not applicable.
Gift Tax Rate Schedule in 2010
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
35 |
Gift and Estate Tax Rate Schedule in 2011 - 2012
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
35 |
Top estate tax bracket = 35%
Gift and Estate Tax Rate Schedule in 2013
|
Taxable Transfer |
Tax |
% on Excess |
|
0 |
0 |
18 |
|
10,000 |
1,800 |
20 |
|
20,000 |
3,800 |
22 |
|
40,000 |
8,200 |
24 |
|
60,000 |
13,000 |
26 |
|
80,000 |
18,200 |
28 |
|
100,000 |
23,800 |
30 |
|
150,000 |
38,800 |
32 |
|
250,000 |
70,800 |
34 |
|
500,000 |
155,800 |
37
|
|
750,000 |
248,300 |
39 |
|
1,000,000 |
345,800 |
40 |
Top estate tax bracket = 40%
