• Estates larger than $3.5 million potentially owe estate tax in 2009. Only about 1 in 460 deaths result in a taxable estate; 99.8 percent of deaths trigger no estate tax. The estate tax will raise almost $14 billion from 5,500 estates in 2009.
  Source: Tax Policy Center Table T09-0400
• Under the 2001 tax cut, the estate tax phases out gradually to complete repeal in 2010. In 2011, the estate tax reverts to its 2001 status with estates greater than $1 million subject to tax rates up to 60 percent.
  Source: The Estate Tax Is Down, But Not Out
• The estate tax is the most progressive federal tax. In 2009, more than 76 percent of estate taxpayers come from the top 5 percent of the income distribution, and they pay 93 percent of estate tax revenue.
  Source: Tax Policy Center Table T09-0402
  
• The Obama Administration's FY2010 budget proposes to make 2009 law ($3.5 million exemption and 45 percent rate) permanent. An alternative Senate proposal would raise the exemption to $5 million and lower the rate to 35 percent.  Source : Tax Policy Center Table T09-0400.

For more on the estate tax, see:

Back from the Grave: Revenue and Distributional Effects of Reforming the Federal Estate Tax, Leonard E. Burman, Katherine Lim, Jeff Rohaly, October 20, 2008

Estate Tax Reform: A Third Option, C. Eugene Steuerle, July 18, 2005.

Options to Reform the Estate Tax, Leonard E. Burman, William G. Gale and Jeff Rohaly, March 23, 2005.

Effects of Estate Tax Reform on Charitable Giving, by Jon M. Bakija and William G. Gale, July 10, 2003.

The Estate Tax Is Down, But Not Out, by Leonard E. Burman and William G. Gale, December 1, 2001.

Tables:

• Current Law and Estate Tax Proposals: Distribution and Revenue Tables, October 20, 2008,
• Distribution of Possible Estate Tax Compromises.

See all publications related to Estate and Gift Taxes.

See all estimates related to Estate and Gift Taxes.

See all tax facts (background data) related to Estate and Gift Taxes.