Washington State Estate Tax
Friday, July 26, 2013 at 11:43AM
Washington State has its own "stand alone" estate tax.
Washington State estate tax has the following deductions:
- $2 million statutory deduction (RCW § 83.100.020(13))
- Deduction for property used for qualifying farm purposes (RCW § 83.100.046)
- Full Marital Deduction (RCW § 83.100.047)
The marginal Washington estate tax rates range from 10% to 20% and those brackets are shown below. "The Washington Taxable Estate" is the gross estate less applicable deductions (e.g. $2 million statutory + any applicable marital or farm deduction).
Effective through 12.31.13
|
If Washington Taxable Estate is at least |
But Less Than |
The amount of Tax Equals Initial Tax Amount |
Plus Tax Rate % |
Taxable Estate Value Greater than |
|
$0 |
$1,000,000 |
$0 |
10.00% |
$0 |
|
$1,000,000 |
$2,000,000 |
$100,000 |
14.00% |
$1,000,000 |
|
$2,000,000 |
$3,000,000 |
$240,000 |
15.00% |
$2,000,000 |
|
$3,000,000 |
$4,000,000 |
$390,000 |
16.00% |
$3,000,000 |
|
$4,000,000 |
$6,000,000 |
$550,000 |
17.00% |
$4,000,000 |
|
$6,000,000 |
$7,000,000 |
$890,000 |
18.00% |
$6,000,000 |
|
$7,000,000 |
$9,000,000 |
$1,070,000 |
18.50% |
$7,000,000 |
|
$9,000,000 |
$1,440,000 |
19.00% |
$9,000,000 |
RCW § 83.100.040(2)(a)
Effective January 1, 2014: (changes in bold)
|
If Washington Taxable Estate is at least |
But Less Than |
The amount of Tax Equals Initial Tax Amount |
Plus Tax Rate % |
Taxable Estate Value Greater than |
|
$0 |
$1,000,000 |
$0 |
10.00% |
$0 |
|
$1,000,000 |
$2,000,000 |
$100,000 |
14.00% |
$1,000,000 |
|
$2,000,000 |
$3,000,000 |
$240,000 |
15.00% |
$2,000,000 |
|
$3,000,000 |
$4,000,000 |
$390,000 |
16.00% |
$3,000,000 |
|
$4,000,000 |
$6,000,000 |
$550,000 |
18.00% |
$4,000,000 |
|
$6,000,000 |
$7,000,000 |
$910,000 |
19.00% |
$6,000,000 |
|
$7,000,000 |
$9,000,000 |
$1,100,000 |
19.50% |
$7,000,000 |
|
$9,000,000 |
$1,490,000 |
20.00% |
$9,000,000 |
Per EDUCATION—TRUST ACCOUNTS—COLLEGES AND UNIVERSITIES, 2013 Wash. Legis. Serv. 2nd Sp. Sess. Ch. 2 (H.B. 2075)
The pre 1.1.14 Washington State effective tax rate (assuming no farm property, marital deduction or other deductions) is shown below.
|
Gross Estate Value |
Taxable Estate Value |
Estate Tax Liability |
Effective Tax Rate (Tax liability divided by gross estate value) |
|
$1,000,000 |
0 |
0 |
-.-% |
|
$2,000,000 |
0 |
0 |
-.-% |
|
$2,500,000 |
$500,000 |
$50,000 |
2.0% |
|
$5,000,000 |
$3,000,000 |
$390,000 |
7.8% |
|
$7,500,000 |
$5,500,000 |
$805,000 |
10.7% |
|
$10,000,000 |
$8,000,000 |
$1,255,000 |
12.6% |
The above chart can be found here.