Transfer Tax Exemptions and Rates

Year

Gift Tax Exemption

Estate & GST Tax Exemption1

2001

$675,000

$675,0002

2002

$1 million

$1 million3

2003

$1 million

$1 million4

2004

$1 million

$1.5 million

2005

$1 million

$1.5 million

2006

$1 million

$2 million

2007

$1 million

$2 million

2008

$1 million

$2 million

2009

$1 million

$3.5 million

2010

$1 million

(repealed)

Year

Highest Estate, GST
& Gift Tax Rates

 

2001

55%5

1

Less any gift tax exemption already used.

2

The GST tax exemption is $1.06 million.

3

The GST tax exemption is $1.1 million.

4

The GST tax exemption is adjusted for inflation.

5

The benefits of the graduated estate and gift tax rates and exemptions are phased out for estates/gifts over $10 million.

2002

50%

2003

49%

2004

48%

2005

47%

2006

46%

2007

45%

2008

45%

2009

45%

2010

35% (gift tax only)

Year

Estate Tax on $2.5 Million

Estate Tax on $5 Million

2001

$805,250

$2,170,250

2002

$680,000

$1,930,000

2003

$680,000

$1,905,000

2004

$465,000

$1,665,000

2005

$460,000

$1,635,000

2006

$230,000

$1,380,000

2007

$225,000

$1,350,000

2008

$225,000

$1,350,000

2009

$0

$675,000

2010

$0

$0

Source: U.S. Internal Revenue Code