Estate Against Withholding In Phoenix
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Arizona does not impose an inheritance or gift tax. An inheritance tax waiver is not required for decedents dying after 2004 as there is no possibility of tax due.
Even though there is no Arizona estate tax, the federal estate tax may apply to your estate. The federal estate tax exemption is $13.99 million for 2025 and increases to $13.61 million for 2024. This tax is portable for married couples.
Another key difference: While there is no federal inheritance tax, there is a federal estate tax. The federal estate tax generally applies to assets over $13.61 million in 2024 and $13.99 million in 2025, and the federal estate tax rate ranges from 18% to 40%.
So, is there an inheritance tax in Arizona? The answer is no. However, if you are inheriting property from someone that lives in another state, you might find yourself subject to that state's inheritance taxation laws. For example, Pennsylvania has an inheritance tax that applies to out-of-state heirs.
If you pass on and have children but no spouse, your children will inherit everything. If you have a spouse but no descendants, your spouse will receive your assets. For those who are married and have descendants with their spouse, the spouse will inherit everything.
Withholding Percentage Options Keep in mind for tax year 2023 and beyond, the tax rate for Arizona taxable income is 2.5%.
The first tax implication to consider in Arizona probate is the state estate tax. As of my knowledge cutoff in September 2021, Arizona does not impose an estate tax. However, it is essential to keep abreast of any changes to state tax laws as they may impact the probate process in the future.
How Much Can You Inherit From Your Parents Without Paying Taxes? Based on state and federal tax rules in 2022, a person may inherit up to $12.06 million without paying taxes, provided that the deceased was a resident of Arizona or another state that does not impose an inheritance tax.
