Exemption, rates and planning for District of Columbia.
District of Columbia has its own estate tax with an exemption of about $4.71M and a top rate of 16% — well below the $15M federal exemption, so more estates are affected.
Only the value of a taxable estate above the $4.71M exemption is taxed, at rates topping out around 16%. The unlimited marital deduction and charitable gifts reduce the taxable estate. Estimate your District of Columbia and federal tax together in the estate tax calculator.
Because the District of Columbia exemption is far below the federal level, even middle-class estates with a home and retirement savings can be exposed. Lifetime gifting (see the gift tax calculator) and the step-up in basis (the step-up calculator) are common tools. Confirm current figures with District of Columbia, as exemptions are indexed.