Delaware, Hawaii, Rhode Island, Tennessee and Washington will have some changes to their estate tax exemptions and/or rates that will go into effect on January 1, 2014.
In both Delaware and Hawaii, the state estate tax exemptions will increase from $5,250,000 in 2013 to $5,340,000 in 2014 since these exemptions are tied to the federal estate tax exemption. Also note that Hawaii currently appears to be the only state with a state estate tax that allows for portability of the state exemption between spouses.
Rhode Island's state estate tax exemption was adjusted for inflation beginning in 2011. Thus, the Rhode Island estate tax exemption will increase from $910,725 in 2013 to $921,655 in 2014.
In May 2012, legislation was enacted which increased Tennessee's inheritance tax exemption each year until the tax will be completely phased out by 2016. Thus, the Tennessee inheritance tax exemption will increase from $1,250,000 in 2013 to $2,000,000 in 2014.
In June 2013, legislation was enacted which will adjust Washington's estate tax exemption for inflation beginning on January 1, 2014. Thus, the Washington estate tax exemption will increase from $2,000,000 in 2013 to $2,012,000 in 2014. However, the rates for the top four Washington estate tax brackets will increase on January 1, 2014 so that the top rate will increase from 19% to 20%.
- 2014 State Death Tax Exemption and Top Tax Rate Chart
- Overview of Delaware Estate Tax Laws in 2014
- Overview of Hawaii Estate Tax Laws in 2014
- What is Portability of the Estate Tax Exemption?
- Overview of Rhode Island Estate Tax Laws
- Overview of Tennessee Inheritance Tax Laws in 2014
- Washington Department of Revenue Estate Tax Annual Adjustment Information
- Overview of Washington Estate Tax Laws in 2014