Florida Inheritance Tax: Is There One?
We are often asked whether Florida imposes an inheritance tax or estate tax on the estates of deceased persons. Thankfully, there is no Florida inheritance or estate tax. There are estate taxes that Florida residents need to be aware of: the Federal estate tax, and the estate taxes that other states might impose.
The Federal estate tax, through the end of 2009, is imposed at a rate of 45%, after taking into account a $3.5 million exemption. As of the writing of this entry, the estate tax is scheduled to be eliminated for 2010, only to be reinstated in 2011 at a rate of 55% and an exemption level of $1 million. Please read about the estate tax fix.
Residents of Florida who own real estate in states that impose a state estate tax could be subject to such taxes in the absence of good planning. Those states with a state estate tax include many of the states where Florida residents have migrated from, including Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, and Rhode Island.
