estate tax

noun

: a tax in the form of a percentage of the taxable estate that is imposed on a property owner's right to transfer the property to others after his or her death compare inheritance tax sense 1

Examples of estate tax in a Sentence

Recent Examples on the Web

The federal estate tax applies to estates exceeding $13.61 million for individuals or $27.22 million for married couples starting in 2025​. Rates can reach as high as 40%, and state-specific inheritance taxes may also apply. —James Brewer, Forbes, 13 Dec. 2024

Similar to estate tax in the U.S., inheritance tax in the U.K. is charged at 40% on the property, possessions and money of someone who has died, above a threshold of 325,000 pounds, or around $410,000. —Hannah Peart, NBC News, 30 Nov. 2024

Awareness of these potential obstacles is crucial for effective estate tax planning. —Christine Fletcher, Forbes, 3 Dec. 2024

Both plans would repeal the estate tax, the alternative minimum tax, and the tax on investment income imposed by Obamacare. —Alex Raskolnikov, Foreign Affairs, 24 May 2017

Word History

First Known Use

1928, in the meaning defined above

Legal Definition

estate tax

noun

: an excise in the form of a percentage of the taxable estate that is imposed on a property owner's right to transfer the property to others after his or her death

called also succession tax

see also unified transfer tax compare gift tax, inheritance tax