Inheritance tax regimes: a comparison*
https://doi.org/10.3326/pse.45.3.3 | Published online: September 6, 2021 Figure 1
Share of inheritance taxes (as % of total taxation), 1995-2018 Source: European Commission, DG Taxation and Customs Union, based on Eurostat data; own calculation and illustration. Table 1
Inheritance and estate taxes
Note: 1) The US applies an estate tax at the federal level. At the level of individual states, we however find both systems, estate and inheritance tax systems. In our analysis of the US regime we however only consider the federal estate tax. 2) Denmark applies both systems: an estate tax is combined with an inheritance tax (see more details below). Source: Nass-Schmidt, et al. (2011) & EY (2015); own illustration. Table 2
Tax rate design
Note: Tax exemptions and reliefs are not considered in the determinants (see below). Source: EY (2015; 2016; 2020); own illustration. Table 3
Tax classes
Note: 1) close relatives comprise spouses (partner) and children. Source: EY (2015; 2016; 2020); own illustration. Table 4
Tax rate groups
Notes: 1) Class II contains tax-free amount tax, whereas class III does not have it. - 2) The tax rate can be re-duced in case of leaving 10% of estate to charity. Source: EY (2015; 2016; 2020); own illustration. Table 5
General exemptions and reliefs
Figure 2
Inheritance and estate tax revenues (as % of GDP) in FI, NL, DE, FR, US and UK, 1965-2010 Figure 3
Net private wealth to net national income ratio, 1955-2015 Figure 4
Wealth-income ratio versus inheritance tax revenue (as % of GDP), 1965-2015 This is an Open Access article distributed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC-BY-NC) which permits non commercial use and redistribution, as long as you give appropriate credit, provide a link to the license, and indicate if changes were made.
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