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There is no federal inheritance tax\u2014that is, a tax on the sum of assets an individual receives from a deceased person. However, a federal estate tax applies to estates larger than $11.7 million for 2021 and $12.06 million for 2022. The tax is assessed only on the portion of an estate that exceeds those amounts.
An inheritance tax, also called an estate tax, is a tax based on the wealth of a deceased person. Florida does not have an inheritance tax, so Florida's inheritance tax rate is zero. A beneficiary of a deceased person in Florida does not owe any state taxes on inherited property.
Every taxpayer has a lifetime gift and estate tax exemption amount. In 2022, the lifetime exemption increased from $11.7 million to $12.06 million. Unless the tax laws change, the lifetime exemption will drop to approximately $6.2 million at the end of 2025.
Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.
Florida is an attractive state to live in for several reasons. It is only one of seven states that does not have an income tax. Also, Florida does not require inheritance and estate taxes. The Sunshine State is so popular that over 300,000 people move to Orlando every year.
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Every taxpayer has a lifetime gift and estate tax exemption amount. In 2022, the lifetime exemption increased from $11.7 million to $12.06 million. Unless the tax laws change, the lifetime exemption will drop to approximately $6.2 million at the end of 2025.
Estate Tax 2022 Rates Taxable AmountEstate Tax RateWhat Your Estate Would Pay$0\u2013$10,00018%\u2014$0 base tax \u201418% on taxable amount$10,001\u2013$20,00020%\u2014$1,800 base tax \u201420% on taxable amount$20,001\u2013$40,00022%\u2014$3,800 base tax \u201422% on taxable amount$40,001\u2013$60,00024%\u2014$8,200 base tax \u201424% on taxable amount8 more rows
There is no federal inheritance tax, but there is a federal estate tax. In 2022, federal estate tax generally applies to assets over $12.06 million, and the estate tax rate ranges from 18% to 40%.
Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.
While beneficiaries don't owe income tax on money they inherit, if their inheritance includes an individual retirement account (IRA) they will have to take distributions from it over a certain period and, if it is a traditional IRA rather than a Roth, pay income tax on that money.

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