Oregon, like many states, has it's own estate tax system, distinct from the federal estate tax. Here's a breakdown of the key differences:
Federal Estate Tax:
Taxable Estate: The federal estate tax is applied to the fair market value of all assets owned by the deceased at the time of death, minus certain deductions (e.g., charitable contributions, marital deductions).
Exemption Amount: As of 2024, the federal estate tax exemption is $13 million per individual ($26 million for a married couple). This means estates below this threshold are generally exempt from federal estate tax.
Tax Rates: Federal estate tax rates are progressive, starting at 18% for estates exceeding the exemption amount and increasing up to 40% for very large estates.
Oregon Estate Tax:
Taxable Estate: Similar to the federal tax, Oregon's estate tax is based on the fair market value of assets owned at death. However, Oregon has its own specific deductions and exemptions.
Exemption Amount: Oregon's estate tax exemption is significantly lower than the federal exemption. As of 2024, it's $1 million per individual ($2 million for a married couple). This means estates that are exempt from federal estate tax may still be subject to Oregon estate tax.
Tax Rates: Oregon's estate tax rates are also progressive, ranging from 10 - 16%.
Key Differences:
Exemption Amount: Oregon's exemption is significantly lower than the federal exemption.
Tax Rates: While both states have progressive tax rates, the specific brackets and percentages vary.
Deductions and Exemptions: Oregon may have its own unique deductions and exemptions that are not available at the federal level.
Note: Estate tax laws can change frequently. It's essential to consult with a tax professional, financial advisor, and estate planning attorney for the most current and accurate information regarding Oregon's estate tax laws and your specific situation.
Would you like to know more about Oregon's estate tax law? I have partnered with Joy McMurchy, an amazing and knowledgable financial educator with WealthWave to bring you November's Taxing Subjects Q & A. This event will take place live on zoom on Friday November 15th at noon PST.
Register here to receive the link and event reminders.
If you are unable to attend live, we will send a copy of the recording after the event. This can be a great opportunity to learn more about the estate tax in Oregon and how proactive planning and knowledge can help minimize the tax burden.
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