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Estate and Gift Tax Rates
Economic Growth and Tax Relief Reconciliation Act of 2001 |
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Timeline of Estate, Gift and Generation-Skipping Transfer Tax Provisions |
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2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010* |
2011** |
| Estate tax exemption |
$675,000 |
$1,000,000 |
$1,000,000 |
$1,500,000 |
$1,500,000 |
$2,000,000 |
$2,000,000 |
$2,000,000 |
$3,500,000 |
Estate tax repealed |
$1,000,000 |
| Top estate tax bracket |
55% |
50% |
49% |
48% |
47% |
46% |
45% |
45% |
45% |
Estate tax repealed |
55% |
| Gift tax exemption |
$675,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
| Top gift tax bracket |
55% |
50% |
49% |
48% |
47% |
46% |
45% |
45% |
45% |
35% |
55% |
| GST exemption |
$1,060,000 |
*** |
*** |
$1,500,000 |
$1,500,000 |
$2,000,000 |
$2,000,000 |
$2,000,000 |
$3,500,000 |
GST tax repealed |
*** |
| Basis of estate assets |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Basis Step-up |
Modified carryover basis |
Basis Step-up |
* Effective for the year 2010 ONLY, the estate tax and generation-skipping transfer ("GST") tax is repealed.
** Barring additional legislation between now and 2011, starting in 2011, the estate, gift and generation-skipping transfer tax laws revert to 2001 law.
*** The GST exemption amount is increased annually for inflation. Based on current law, it will increase in 2002 and 2003. If the law reverts to 2001 law in 2011, there will be an adjustment to the GST exemption to take into account inflation from 2003 through 2010. |
