New Delhi. The big issue in the Lok Sabha elections remains the statement of Congress leader Rahul Gandhi and his party’s manifesto. PM Narendra Modi, citing Rahul Gandhi’s statement and the Congress manifesto, has alleged that after forming the government at the Centre, the Congress wants to snatch everyone’s property and distribute it among people with more children and infiltrators. Congress is targeting PM Modi by calling this allegation wrong. At the same time, now Congress leader Sam Pitroda, close to Rahul Gandhi, has also advocated distribution of the property share of the rich. For this, Sam Pitroda has given the example of inheritance tax made in some states of America in favor of doing the same in India also. So now let us tell you what is inheritance tax in America and in which states how much is it charged?
What is inheritance tax?
Inheritance tax applies in 6 states of America. That means when someone dies, the government takes a part of his property. Inheritance tax laws depend on the relationship between the deceased and the recipient of his or her property. Apart from this, these states of America also assess the property before taking inheritance tax and also see how long the deceased has lived in that state. Inheritance tax is not applicable throughout the US. However, after someone’s death, a prescribed tax has to be paid to the government.
What is the inheritance tax in which state of America?
In the US, inheritance taxes are imposed in the states of Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Iowa, however, is going to eliminate the inheritance tax in 2025. In Iowa, there is a law to collect 1 to 4 percent inheritance tax from the deceased’s wife, parents, children, grandchildren, grandfather, grandmother, maternal grandmother, great-grandson, etc. There is a charitable exemption of up to $500. In Kentucky, inheritance taxes of 4 to 16 percent are levied on estates worth more than $500 or $1,000. With this, concession has been given to wife, parents, children, grandchildren, great grandchildren and siblings. Maryland has a 10 percent inheritance tax on estate values over $1,000.
In Nebraska, the deceased’s parents, children, brothers, sisters, and grandparents are required to pay a 1 percent inheritance tax on any estate worth more than $100,000. At the same time, there is a law to give 11 percent inheritance tax on property worth more than $40,000 to aunts, uncles, nieces, nephews etc. Other heirs are taxed at 15 percent on an estate up to $25,000. The inheritance tax rate in New Jersey is 11 to 16 percent. From this, wife, children, parents, grandfather, grandmother, maternal grandmother, grandson, great-grandson and charitable organizations are exempted. Brothers, sisters, sons and daughters-in-law also get exemption on assets up to $25,000. In Pennsylvania, the deceased’s children, parents, grandfathers, grandmothers, grandfathers and grandmothers have to pay 4.5 percent inheritance tax on their property worth more than $3500. Here siblings have to pay 12 percent tax and other heirs have to pay 15 percent tax. There is complete exemption for children below 21 years of the deceased and charitable institutions.