Center for State Tax Policy

Estate and Gift Taxes

The federal government taxes transfers of wealth in three ways: through the estate tax, the gift tax and the generation-skipping transfer tax. Together these taxes make up the federal transfer tax system. In addition, many U.S. states impose estate taxes.

Estate taxes and generation-skipping transfer taxes are paid on the contents of estates or proceeds of trusts, while transfers of wealth between living persons are subject to gift taxes. The federal government enacted the first estate tax in 1916. Studies routinely find that estate taxes discourage entrepreneurship and lead to large tax compliance costs.

Featured Research

Trends in State Tax Policy, 2018

December 14, 2017

State Inheritance and Estate Taxes: Rates, Economic Implications, and the Return of Interstate Competition

July 17, 2017

Does Your State Have an Estate or Inheritance Tax?

May 25, 2017

Testimony: Reforming the Estate Tax in Minnesota

January 27, 2017

Trends in State Tax Policy

December 5, 2016

Related Articles

Enhancing Tax Competitiveness in Connecticut

July 31, 2018

D.C. Proposes Sales Tax Increase, Other Tax Changes

May 16, 2018

Does Your State Have an Estate or Inheritance Tax?

April 5, 2018

State Tax Changes That Took Effect on January 1, 2018

January 2, 2018

Trends in State Tax Policy, 2018

December 14, 2017

State Inheritance and Estate Taxes: Rates, Economic Implications, and the Return of Interstate Competition

July 17, 2017

A Bevy of Tax Bills To Raise Long-Term Revenue in Delaware

June 28, 2017

Minnesota Budget Squabbles Might Spur Lawsuit

June 8, 2017

Delivering Tax Relief to D.C. Taxpayers

May 31, 2017

Does Your State Have an Estate or Inheritance Tax?

May 25, 2017

D.C. Council Committee to Vote on Interrupting Tax Reform Package

May 18, 2017

D.C. to Enact Remaining Tax Cuts After Projection of Large Recurring Surplus

February 28, 2017

Testimony: Reforming the Estate Tax in Minnesota

January 27, 2017

Maine Governor LePage Proposes Good Tax Policy in New Budget

January 10, 2017

Trends in State Tax Policy

December 5, 2016

State Tax Successes in 2016 Thanks to You, Our Readers and Supporters!

November 8, 2016

Does Your State Have an Estate or Inheritance Tax?

May 25, 2016

Tax Freedom Day 2016 is April 24

April 6, 2016

Eliminating the Estate Tax Won’t Fix New Jersey, but it’s a Good Start

April 5, 2016

What Pennsylvania Can Do on Tax Reform this Session

February 20, 2015