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CCH can assist you with stories, including interviews with CCH subject experts. Also, the 2010
CCH Whole Ball of Tax
is available in print. Please contact:
 
Leslie Bonacum
(847) 267-7153
mediahelp@cch.com
 
Neil Allen
(847) 267-2179
neil.allen@wolterskluwer.com

Visit the CCH Whole Ball of Tax site often as new releases and other updates will be posted throughout the tax season.

CCH provides special CCH Tax Briefings on key topics at: CCHGroup.com/Legislation/Briefings.

 
2010 CCH Whole Ball of Tax
Release (33) | Back to WBOT

2010 CCH Whole Ball of Tax

Contact:
Leslie Bonacum
, 847-267-7153, mediahelp@cch.com
Neil Allen, 847-267-2179, neil.allen@wolterskluwer.com

Historical Look at Estate and Gift Tax Rates 

MAXIMUM ESTATE TAX RATES (1916 – 2011)  

In effect from September 9, 1916, to March 2, 1917

10% of net estate in excess of $5 million

In effect from March 3, 1917, to October 3, 1917

15% of net estate in excess of $5 million

In effect from October 4, 1917, to 6:55 p.m. EST, February 24, 1919

Basic estate tax of 15% of net estate in excess of $5 million plus war estate tax of 10% of net estate tax in excess of $10 million

In effect from 6:55 p.m. EST, February 24, 1919, to 10:25 a.m. EST, February 26, 1926

 

25% of net estate in excess of $10 million

In effect after 10:25 a.m. EST, February 26, 1926, to 5 p.m. EST, June 6, 1932

20% of net estate in excess of $50 million*

In effect from 5 p.m. EST, June 6, 1932, to May 10, 1934

45% of net estate in excess of $50 million*

In effect from May 11, 1934, to August 30, 1935

60% of net estate in excess of $50 million*

In effect from August 31, 1935, to June 25, 1940

70% of net estate in excess of $50 million*

Estates of decedents dying after June 25, 1940, but before September 21, 1941

70% of excess of net estate over $10 million* plus a defense tax of 10% of the total tax computed under the basic and additional estate taxes (in effect, maximum tax was 77%)

Estates of decedents dying after September 20, 1941, but before August 17, 1954

77% of excess of net estate over $10 million*

Estates of decedents dying after August 16, 1954, but before 1977

77% of excess over $10 million

Estates of decedents dying after 1976 but before 1982

70% of excess over $5 million

Estates of decedents dying in 1982

65% of excess over $4 million

Estates of decedents dying in 1983

60% of excess over $3.5 million

 

Estates of decedents dying after 1983 and before 1988

55% of excess over $3 million

Estates of decedents dying after 1987 and before 1998

55% of excess over $3 million (effectively 60% for estates in excess of $10 million but less than $21,040,000 because of a surtax to phase out benefits of the graduated rates and unified credit)

Estates of decedents dying in 1998 through 2001

55% of excess over $3 million (effectively 60% for estates in excess of $10 million but less than $17,184,000 because of surtax to phase out benefits of only the graduated rates)

Estates of decedents dying in 2002

50% of excess over $ 2.5 million**

Estates of decedents dying in 2003

49% of excess over $2 million

Estates of decedents dying in 2004

48% of excess over $2 million

Estates of decedents dying in 2005

47% of excess over $2 million

Estates of decedents dying in 2006

46% of excess over $2 million

Estates of decedents dying in 2007 and 2008

45% of excess over $2 million***

Estates of decedents dying in 2009

45% of excess over $3.5 million

Estates of decedents dying in 2010

No estate tax

Estates of decedents dying in 2011

55% of excess over $3 million (effectively 60% for estates in excess of $10 million but less than $17,184,000)****

For Estate Taxes:

* Estate tax was composed of a basic estate tax plus an additional estate tax; in effect, estates never paid more than the amount of the additional estate tax.

** Beginning in 2002, the surtax on estates in excess of $10 million is repealed. In addition, the maximum estate tax rate begins to decrease, while the applicable exclusion amount for estate tax purposes (i.e., the lifetime amount shielded from estate tax) begins to increase. During the years 2002 through 2009, the estate tax applicable exclusion amount is $1 million in 2002 and 2003, $1.5 million in 2004 and 2005, $2 million in 2006 through 2008, and $3.5 million in 2009.

*** Although the estate tax rate schedule for 2007 through 2009 (Code Sec. 2001) shows the 45% rate being imposed on estates in excess of $1.5 million, the estate tax applicable exclusion amount effectively precludes taxation of any transfers in an amount below $2 million in 2006 through 2008 and $3.5 million in 2009.

**** Legislation will sunset in 2011, reverting to the law as it existed prior to passage of the Economic Growth and Tax Relief Reconciliation Act of 2001.  

 

MAXIMUM GIFT TAX RATES 1924 – 2011

1924-1925

40% on transfers in excess of $10 million over the course of the donor’s lifetime

June 7, 1932-1934

33.5% on transfers in excess of $10 million over the course of the donor’s lifetime

1935

45% on transfers in excess of $10 million over the course of the donor’s lifetime

1936-1940

52.5% on transfers in excess of $50 million over the course of donor’s lifetime

1941

52.5% on transfers in excess of $50 million over the course of the donor’s lifetime, plus a defense tax of 10% of the total tax computed (in effect, maximum tax was 57.75%)

1942-1976

57.75% on transfers in excess of $10 million over the course of the donor’s lifetime

1977-1981

70% of transfers in excess of $5 million over the course of the donor’s lifetime

1982

65% of transfers in excess of $4 million over the course of the donor’s lifetime

1983

60% of transfers in excess of $3.5 million over the course of the donor’s lifetime

1984-1987

55% of transfers in excess of $3 million over the course of the donor’s lifetime

1988-1997

55% of transfers in excess of $3 million over the course of the donor’s lifetime (effectively 60% for transfers in excess of $10 million but less than $21,040,000 because of a surtax to phase out the benefits of the graduated rates and unified credit)

1998-2001

55% of transfers in excess of $3 million over the course of the donor’s lifetime (effectively 60% for transfers in excess of $10 million but less than $17,184,000, because of a surtax to phase out the benefits of only the graduated rates)

2002

50% of transfers in excess of $ 2.5 million over the course of the donor’s lifetime

2003

49% of transfers in excess of $2 million over the course of the donor’s lifetime

2004

48% of transfers in excess of $2 million over the course of the donor’s lifetime*

2005

47% of transfers in excess of $2 million over the course of the donor’s lifetime

2006

46% of transfers in excess of $2 million over the course of the donor’s lifetime

2007-2009

45% of transfers in excess of $1.5 million over the course of the donor’s lifetime

2010

35% of transfers in excess of $1 million over the course of the donor’s lifetime**

2011

55% of transfers in excess of $3 million over the course of the donor’s lifetime (effectively 60% for transfers in excess of $10 million but less than $17,184,000)***

For Gift Taxes:

*Beginning in 2004, the applicable exclusion amount for gift tax purposes (i.e., the lifetime amount shielded from gift tax) is different from the amount used for estate tax purposes. During the years 2002 through 2010, the gift tax applicable exclusion amount remains constant at $1 million, while the estate tax applicable exclusion amount is $1 million in 2002 and 2003, $1.5 million in 2004 and 2005, $2 million in 2006 through 2008, and $3.5 million in 2009.

**Although the gift tax rate schedule for the year 2010 (Code Sec. 2502) shows the 35% rate being imposed on transfers in excess of $500,000, the gift tax applicable exclusion amount effectively precludes taxation of any transfers in an amount below $1 million.

***Legislation will sunset in 2011, reverting to the law as it existed prior to passage of the Economic Growth and Tax Relief Reconciliation Act of 2001.

Source: CCH, 2010

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