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Federal Gift and Estate Tax Rate Schedules for 2002 –2013

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%

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