Indiana Inheritance Tax

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Indiana Inheritance Tax
The State of Indiana imposes an inheritance tax on individuals who are residents of the State of Indiana at the time of their death. This tax is different from an estate tax in that an estate tax is a tax levied against your estate based on the value of your estate; an inheritance tax is a tax levied on the individual that receives an inheritance. Furthermore, the State of Indiana imposes inheritance taxes at different rates based on your relationship to the decendent.
Class A
Lineal ancestors such as parents and grandparents and descendants such as children and grandchildren. Each Class A beneficiary receives a $100,000 Indiana inheritance tax exemption.
Value of Inheritance after Exemptions		Tax Rates
Col. One	Col. Two	Tax on Col. One	Rate on Excess over Col. One
$0	$25,000	0	1%
25,000	50,000	250	2%
50,000	200,000	750	3%
200,000	300,000	5,250	4%
300,000	500,000	9,250	5%
500,000	700,000	19,250	6%
700,000	$1 mil	31,250	7%
$1 mil	$1.5 mil	52,250	8%
Over 1.5 mill	Over 1.5 mil	92,250	10%
Class B
Brothers or sisters and descendants of brothers or sisters; spouse of a child or of a deceased child. Each Class B beneficiary receives a $500 inheritance tax exemption.
Value of Inheritance after Exemptions		Tax Rates
Col. One	Col. Two	Tax on Col. One	Rate on Excess over Col. One
$0	$100,000	0	7%
100,000	500,000	7,000	10%
500,000	$1 mil	47,000	12%
Over 1.0 mill	Over 1.0 mill	107,000	15%
Class C
All others (except surviving spouse)
Value of Inheritance after Exemptions		Tax Rates
Col. One	Col. Two	Tax on Col. One	Rate on Excess over Col. One
$0	$100,000	0	10%
100,000	500,000	10,000	15%
500,000	$1 mil	70,000	15%
Over 1.0 mill	Over 1.0 mill	145,000	20%

This information is not designed, meant, nor does it constitute the rendering of legal advice. You should consult with an attorney and tax advisors before implementing any strategy discussed here.


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