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Ohio Estate Tax

What You Need to Know About the Ohio Estate Tax

The state of Ohio does not have an estate tax. There is a chance that you may still be subject to the federal estate tax. This guide has all the information you need to start estate planning in the Buckeye State. If you think you’ll need help, it can’t hurt to speak to a professional. SmartAsset’s free financial advisor matching tool can help you find an advisor who serves your area.

Ohio Estate Tax

Ohio is one of 38 states that doesn’t tax estates, regardless of size.

What Is the Estate Tax?

The estate tax is sometimes called the “death tax,” but all official government entities use the term estate tax. It is a tax levied on the estate of a recently deceased person before the money is passed on to their heirs.

The estate tax is different from the inheritance tax, which is levied on a person’s heirs after they have received an inheritance.

Ohio Inheritance Tax and Gift Tax

What You Need to Know About the Ohio Estate Tax

There is no inheritance tax in Ohio. However, other states’ inheritance tax may apply to you as an Ohio resident. For instance, in Pennsylvania, the inheritance tax applies to out-of-state heirs if the deceased lived in the state. If you’ve inherited money, you should check local laws to see if you’ll owe inheritance tax to another state.

Ohio also has no gift tax, meaning the only gift tax that may apply to you is the federal gift tax. The gift tax exemption for 2024 was $18,000 per person. In 2023, this was lower at $17,000. Gifting more than that to a single person in one year will reduce your 2024 lifetime exemption of $13.61 million.

Federal Estate Tax

Even though there is no Ohio estate tax, you may still owe estate tax to the federal government. The federal estate tax kicks in at $13.61 million for 2024, up from $12.92 million for deaths in 2023. This tax is portable for married couples. This means that with the right legal steps, a married couple’s estate won’t have to pay federal estate tax on up to $27.22 million when both spouses die as of 2024.

A full chart of federal estate tax rates is below.

Here’s an example of how it works: Let’s say your estate is worth $27.43 million and you aren’t married. The estate tax exemption is $13.61 million, so subtracting that from $27.43 million leaves you with a taxable estate of $13.82 million. If you consult the chart, you’ll see you are in the highest bracket. Your base tax payment on the first $1 million is $345,800. You also pay 40% on the remaining $12.82 million, which comes to $5.128 million. That ($5.128 million), plus the base tax payment of $345,800, means your total tax burden is $5,473,800.

Federal Estate Tax Rates

Taxable Estate*Base Taxes PaidMarginal RateRate Threshold**
$1 – $10,000$018%$1
$10,000 – $20,000$1,80020%$10,000
$20,000 – $40,000$3,80022%$20,000
$40,000 – $60,000$8,20024%$40,000
$60,000 – $80,000$13,00026%$60,000
$80,000 – $100,000$18,20028%$80,000
$100,000 – $150,000$23,80030%$100,000
$150,000 – $250,000$38,80032%$150,000
$250,000 – $500,000$70,80034%$250,000
$500,000 – $750,000$155,80037%$500,000
$750,000 – $1 million$248,30039%$750,000
Over $1 million$345,80040%$1 million

*The taxable estate is the total above the 2024 federal exemption of $13.61 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.

Overall Ohio Tax Picture

What You Need to Know About the Ohio Estate Tax

Ohio has a progressive income tax rate, ranging from 0% to 3.75%. Depending on where you live, there could be additional local income taxes as well. You can use our Ohio paycheck calculator to determine your take home pay. The state is moderately tax-friendly for retirees: Social Security is not taxed, while retirement plan withdrawals are partially taxed. Pensions are also partially taxed. The average effective property tax rate in Ohio is 1.53%, higher than the national average.

Estate Planning Tips

  • While planning out your estate, you may want some help from a professional like a financial advisor. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you’re planning your estate, make sure you know the value of all your assets, including any retirement plans you may have. For instance, if you have a 401(k) plan through your employer, you should know the value of the account. SmartAsset’s 401(k) calculator can help you figure it out.

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