What is the tax rate for inheritance?

In Virginia, inheritance tax is technically classified as an estate tax, and the rate depends on the size of the estate being passed to its heirs. Generally speaking, the tax rate for an estate valued between $0-$10,000 is a flat 4.0%, while larger estates are taxed at a graduated rate ranging from 4.0% to 10.0%. Estates worth over $20,000 up to and including $100,000 are liable for a 5.0% tax rate, while estates valued between $100,001 and $1 million are taxed at 6.0%. Estates over $1 million up to and including $5 million are subject to an 8.0% rate, while those above $5 million are subject to a 10.0% rate. In addition to estate taxes, Virginia also levies an inheritance tax on certain classes of beneficiaries. Inheritance taxes are often paid by those receiving a bequest from an estate. For example, all immediate family members and lineal relatives of the deceased are exempt from both gift and inheritance taxes, while non-lineal family members and any other parties are liable for the inheritance tax. This tax rate is a flat 11.0%. Overall, if an estate is worth less than $10,000, the tax rate is 4.0%. For larger estates, the tax rate increases gradually with the size of the estate, until it reaches 10.0% for estates over $5 million. If the beneficiary is exempt from estate taxes but liable for inheritance taxes, the rate is 11.0%.

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