The new tax rates for the year 2023 have been announced. There is a slight increase in the Federal Estate Tax Exclusion amount for 2023. So a decedent dying between Jan. 1 and Dec. 31, 2023, may be subject to an estate tax, with an applicable lifetime estate duty exclusion amount of $12,920,000 (increased from $12,600,000 in 2021).
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2023 income tax brackets for estates & trusts
The tax rate schedule for estates and trusts in 2023 is as follows:
$0 to $2,900
10% of income over $0
$2,90750 to $10,550
$290 + 24% of income over $2,750
$10,550 to $14,450
$2,126 + 35% of income over $9,850
$14,450 or more
$3,491 + 37% of income over $13,450
2022 Income Tax brackets for Estates & Trusts
Below are the tax rates and income brackets that would apply to estates and trusts that were opened for deaths that occurred in 2022. They would apply to the tax return filed in April 2023.