2022 Estate and Inheritance Tax: What to Expect


By: HeirSearch.

Inheritance or State tax is levied on the beneficiary and must be paid on assets left to them by the decedent. On the other hand, federal tax is paid directly by the estate.

The majority of estates aren’t large enough to be charged a federal estate tax, and as of 2022, estate taxes only apply if the decedent’s assets are worth more than $12.06 million, adjusted for inflation from 2021’s $11.7 million. The annual gift tax exclusion amount jumps to $16,000 for 2022, up from $15,000 where it sat since 2018.

What’s new for Estate Taxes in 2022?

In 2022, an individual can leave $12.06 million to their heirs without paying any federal estate or gift tax. Married couples can avoid taxes as long as the estate is valued at under $24.12 million. Additionally, the new higher exemption means that there’s room for them to give away another $720,000 in 2022.

Trusts and Estate Tax Rates of 2022

The IRS recently announced inflation adjustments for the 2022 tax year with Estate Tax rates and Trust tax. You can find all the details on tax rates in the Revenue Procedure 2021-45.

If taxable income is between: the tax due is:
$0 and $2,750 10% of taxable income
$2,750 and $9,850 $275 + 24% of the amount over $2,750
$9,850 and $13,450 $1,978 + 24% of the amount over $9,850
$13,450 $3,239 + 37% of the amount over $13,450

What States are Affected by Inheritance Tax and Estate Tax in 2022?

States that levy only inheritance taxes paid directly by your heirs: Iowa, Kentucky, Nebraska, New Jersey, and Pennsylvania.

States that levy only estate taxes: Connecticut, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington (as well as Washington D.C).

States that levy both inheritance and estate taxes: Maryland is the only state that levies both an inheritance tax and an estate tax.

Do You Need Help Establishing Heirship for Estate Planning Purposes?

HeirSearch works with executors, administrators, trustees, fiduciaries, bank and trust officers, and their counsel to establish kinship for legal purposes. Since 1967, we’ve successfully completed tens of thousands of worldwide searches. HeirSearch’s professional researchers help estate administrators through qualified assistance identifying and locating missing heirs to an estate.

If you’re facing a challenge of locating a missing heir or beneficiary in an estate matter HeirSearch can help. Our professional researchers help trust and estate professionals through forensic genealogy in identifying and locating rightful estate heirs.

We offer no-cost, no-obligation consultations, court-ready documents, and reasonable, non-percentage-based search fees.

Feel free to reach out with any questions — we look forward to connecting!

Phone: +1 (800)-663-2255

Or Contact Us Today

As the industry’s leading forensic genealogy experts and heir finders, We Find Missing Heirs A Better Way™. We can help with even the most complex probate cases, spanning multiple genealogical connections and geographies.


This report is for informational purposes only and is intended only as a reference. HeirSearch does not endorse or recommend any of the products or services offered in the third-party articles or content contained within. We cannot guarantee the accuracy or effectiveness of the same and will not assume any liability related to the same. Additionally, nothing contained herein may be construed as legal advice. All offers are void where prohibited by law. Copyright © International Genealogical Search Inc. All rights reserved.