Internal Revenue Code section 2011 allows a credit to be deducted from federal estate taxes for amounts actually paid to a state or the District of Columbia. This amount is limited by a range from 8/10 of 1% up to 16% of the taxable estate. The credit is only allowed for death taxes paid with respect to the estate of a decedent. 

 

This credit shifts a portion of the estate taxes from the federal government to the state government – the total amount of the federal estate taxes must still be paid.

 

 

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