You may have assumed that Florida is a popular state to retire to for its warm weather that affords diverse recreational opportunities all year round. But pivotally, it is also one of the most tax-friendly states for retirees. With that being said, please read on to discover whether an estate tax or inheritance tax applies in Florida and how a seasoned Broward County estate tax planning lawyer at The Probate Lawyers can help you understand and address these potential implications.
Is there an estate tax or inheritance tax imposed in the state of Florida?
As a Florida resident, you may be happy to hear that this is one of the 38 states that does not impose state estate taxes. This means that taxes will not be taken out of your estate upon your unfortunate death. Arguably equally important, Florida is one of 44 states that does not enforce inheritance taxes. So, your designated beneficiaries may not be expected to pay taxes on the assets you leave behind for them in your estate. This is especially valuable if your desired beneficiaries are not in your direct familial lineage, such as your close friends or favorite entities not classified as charitable organizations. Overall, this is to say that the amount and value you care to pass down to your loved ones may be closely aligned with what they ultimately receive.
What are the federal estate tax rates as of 2025?
You may be lucky enough to be part of an exclusive group of individuals with high-net-worth estates. The unlucky part, though, is that this means you may have to pay a federal estate tax. Specifically, this is if your estate is worth more than $13.99 million or $27.98 million if you are one part of a married couple. The tax rate may be directly dependent on the taxable amount of your estate. They read as follows:
- For a taxable amount of $1 to $10,000:
- A $0 base tax and an 18 percent taxable amount.
- For a taxable amount of $10,000 to $20,000:
- A $1,800 base tax and a 20 percent taxable amount.
- For a taxable amount of $20,000 to $40,000:
- A $3,800 base tax and a 22 percent taxable amount.
- For a taxable amount of $40,000 to $60,000:
- A $8,200 base tax and a 24 percent taxable amount.
- For a taxable amount of $60,000 to $80,000:
- A $13,000 base tax and a 26 percent taxable amount.
- For a taxable amount of $80,000 to $100,000:
- A $18,200 base tax and a 28 percent taxable amount.
- For a taxable amount of $100,000 to $150,000:
- A $23,800 base tax and a 30 percent taxable amount.
- For a taxable amount of $150,000 to $250,000:
- A $38,800 base tax and a 32 percent taxable amount.
- For a taxable amount of $250,001 to $500,000:
- A $70,800 base tax and a 34 percent taxable amount.
- For a taxable amount of $500,001 to $750,000:
- A $155,800 base tax and a 37 percent taxable amount.
- For a taxable amount of $750,001 to $1 million:
- A $248,300 base tax and a 39 percent taxable amount.
- For a taxable amount of $1 million or more:
- A $345,800 base tax and a 40 percent taxable amount.
To conclude, you must be fully equipped to enter your upcoming estate planning procedures. Your preparation is incomplete without hiring a competent Broward County estate lawyer. Contact The Probate Lawyers today.
