Search results
Results from the WOW.Com Content Network
There is no estate tax in California. However, residents may have to pay a federal estate tax. Here's what to know about estate taxes in California.
For decedents that die on or after June 8, 1982, and before January 1, 2005, a California Estate Tax Return is required to be filed with the State Controller's Office if a federal estate tax return (Form 706) is being filed with the Internal Revenue Service.
Instead, they count towards the lifetime gift and estate tax exemption. In 2024, the lifetime gift and estate tax exemption for individuals is $13.61 million. Even though California does not have a state estate tax or inheritance tax, residents still face one of the highest tax burdens in the nation.
Although California does not enforce estate tax, it’s imperative to consider the federal estate tax. In 2024, the federal estate tax is triggered for estates valued at $13.61 million or higher, up from $12.92 million in 2023.
In California, there is no state inheritance tax, so you can inherit any amount of money or cash without owing state taxes on it. However, the federal estate tax may apply if the inherited amount exceeds the federal exemption amount. In 2024, this amount is $12.92 million.
Portability and the estate tax exemption: The 2024 estate tax exemption is $13.61 million per person (i.e., $27.22 million per couple). This exemption significantly increased in 2017 and has been indexed for inflation each year since. However, the exemption is expected to decrease in 2026 to approximately $7 million per person.
In 2024, the estate tax exemption increases to $13.61 million for individuals ($27.22 million for married couples). What this means is that for individuals with estates worth $13.61 million or less ($27.22 million or less for married couples), you can pass away without an estate tax due.