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

Individuals can use 529 plans to reduce estate tax liability, maximize contributions through superfunding and provide allowances through rollovers to Roth IRAs, all leading to significant tax savings. —Robert Cole, Forbes, 9 Jan. 2025

Retirees also don't pay an inheritance tax or an estate tax, and most groceries and all prescription and nonprescription drugs are tax-free. —Dobrina Zhekova, Travel + Leisure, 20 Nov. 2024

Some states have their own estate tax rules that don’t align with federal ones. —Ashley Case, Forbes, 26 Dec. 2024

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

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