Exclusion

Exclusion means:
an amount that would otherwise constitute a part of gross income, but is excluded under a specific provision of the Internal Revenue Code. Some major exclusions are gifts, inheritance, life insurance proceeds, scholarships, and lodging or meals furnished for the convenience of the employer.

U.S. and other Developed Countries International Tax Meaning

Term used to describe income which is exempt, i.e. not included, in the calculation of gross income for tax purposes.

Federal Estate and Gift Tax Rates and Exclusions

Federal estate tax exclusions and the bottom and top tax rates:

Estate Tax Exclusion

• Year 1977 : $120,667
• Year 1978 : $134,000
• Year 1979 : $147,333
• Year 1980 : $161,563
• Year 1981 : $175,625
• Year 1982 : $225,000
• Year 1983 : $275,000
• Year 1984 : $325,000
• Year 1985 : $400,000
• Year 1986 : $500,000
• Year 1987-1996 : $600,000
• Year 1997 : $600,000
• Year 1998 : $625,000
• Year 1999 : $650,000
• Year 2000-2001 : $675,000
• Year 2002 : $1,000,000
• Year 2003 : $1,000,000
• Year 2004 : $1,500,000
• Year 2005 : $1,500,000
• Year 2006 : $2,000,000
• Year 2007-2008 : $2,000,000
• Year 2009 : $3,500,000
• Year 2010-2011 : $5,000,000 (in 2010, federal estate tax was optional)
• Year 2012 : $5,120,000
• Year 2013 : $5,250,000
• Year 2014 : $5,340,000
• Year 2015 : $5,430,000
• Year 2016 : $5,450,000

Estate Tax Initial Rate (Above Exclusion)

• Year 1977 : 30%
• Year 1978 : 30%
• Year 1979 : 30%
• Year 1980 : 32%
• Year 1981 : 32%
• Year 1982 : 32%
• Year 1983 : 34%
• Year 1984 : 34%
• Year 1985 : 34%
• Year 1986 : 37%
• Year 1987-1996 : 37%
• Year 1997 : 37%
• Year 1998 : 37%
• Year 1999 : 37%
• Year 2000-2001 : 37%
• Year 2002 : 41%
• Year 2003 : 41%
• Year 2004 : 45%
• Year 2005 : 45%
• Year 2006 : 46%
• Year 2007-2008 : 45%
• Year 2009 : 45%
• Year 2010-2011 : 35% (in 2010, federal estate tax was optional)
• Year 2012 : 35%
• Year 2013 : 40%
• Year 2014 : 40%
• Year 2015 : 40%
• Year 2016 : 40%

Estate Tax Maximum Rate

• Year 1977 : 70%
• Year 1978 : 70%
• Year 1979 : 70%
• Year 1980 : 70%
• Year 1981 : 70%
• Year 1982 : 65%
• Year 1983 : 60%
• Year 1984 : 55%
• Year 1985 : 55%
• Year 1986 : 55%
• Year 1987-1996 : 55%
• Year 1997 : 60% (the top average tax rate was 55%)
• Year 1998 : 60% (the top average tax rate was 55%)
• Year 1999 : 60% (the top average tax rate was 55%)
• Year 2000-2001 : 60% (the top average tax rate was 55%)
• Year 2002 : 50%
• Year 2003 : 49%
• Year 2004 : 48%
• Year 2005 : 47%
• Year 2006 : 46%
• Year 2007-2008 : 45%
• Year 2009 : 45%
• Year 2010-2011 : 35% (in 2010, federal estate tax was optional)
• Year 2012 : 35%
• Year 2013 : 40%
• Year 2014 : 40%
• Year 2015 : 40%
• Year 2016 : 40%