The estate tax, sometimes also called the "death tax," is a tax that's levied on the transfer of a deceased person's assets. In 2022, the federal estate tax ranges from rates of 18% to 40% and generally only applies to assets over $12.06 million.
The federal estate tax is assessed on the current fair market value of the assets. In other words, the tax is calculated based on what the assets are worth today, not the original value at the time of purchase by the deceased.
Assets inherited by the surviving spouse are generally not subject to the federal estate tax because of the unlimited marital deduction.
Estate Tax: Definition, Tax Rates and Who Pays in 2022
- by: Kay Bell
- 05-18-2022
- Source:
Nerdwallet
- 07/21/2022
Filling 1040 tax form with calculator and pen by Marco Verch Professional Photographer is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
Filling 1040 tax form with calculator and pen by Marco Verch Professional Photographer is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
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