August 30th 2024.
Washington state has a particular law that states that if a person dies with a net worth that exceeds a certain threshold amount, they will be subject to an estate tax. As of 2024, this threshold is set at $2,193,000. If you want to get an idea of how much estate tax you or someone you know might owe to Washington state, you can use the estate tax calculator provided below.
The calculator requires you to input a few pieces of information regarding the estate, such as the total assets in Washington state and outside of Washington state, any liabilities, spousal transfers, estate costs, and charitable contributions. Once you have entered all the necessary information, you can click on the "Calculate Estate Tax" button and the calculator will provide you with a breakdown of the taxable estate and the corresponding Washington estate tax.
It is important to note that there are a few things to keep in mind when using this calculator. First, Washington state allows for certain deductions to be made from the taxable estate, including liabilities, spousal transfers, estate administration costs, charitable contributions, and a standard exclusion amount of $2,193,000. Additionally, if the estate includes out of state real estate, the formula will take this into consideration and adjust the tax accordingly. It should be noted that Washington state does not tax its residents on real property held outside of the state. For example, if 25% of the estate is made up of out of state real estate, the state will only tax the remaining 75%.
The actual tax calculation follows a sliding scale, starting at 10% and increasing to 20%. One important detail to keep in mind for those who have out of state real property is that the values entered for that property must be net of any nonrecourse debt, such as mortgages that the deceased was not personally liable for. The liabilities box should be used to show the total amount of recourse liabilities.
Please keep in mind that the results provided by this calculator should be viewed as estimates only. They can give you an idea of the potential taxes that an estate may owe, but they do not provide an exact calculation. For more information on the Washington state estate tax, you can visit the Washington Department of Revenue website or check out some helpful resources, such as the Washington State Estate Tax Returns: When to File and Pay Taxes and Washington State Estate Tax Planning Tactics. Additionally, you may find a guest blog post by local attorney Raemi Gilkerson, titled "Washington Estate Tax Worries: 3 Tips to Save Thousands," to be informative.
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