Rates & Exemptions

Transfers to a spouse are completely exempt from Indiana inheritance tax (I.C.6-4.1-3-7). Each heir or beneficiary of a decedent’s estate is divided into three classes; each class is entitled to a specific exemption (I.C.6-4.1-3-91).

Class A: Spouse, Children, Grandchildren, Parents Effective July 1, 1997, the first $100,000.00 of an estate going to an heir in Class A is exempt of inheritance tax. Estates over the first $100,000.00, the tax is as follows:

• $25,000 or less 1%
• $25,000 to $50,000 2% over the first $25,000 plus $250.00
• $50,000 to $200,000 3% over the first $50,000 plus $750.00
• $200,000 to $300,000 4% over the first $200,000 plus $5,250.00
• $300,000 to $500,000 5% over the first $300,000 plus $9,250.00
• $500,000 to $700,000 6% over the first $500,000 plus $19,250.00
• $700,000 to $1 million 7% over the first $700,000 plus $31,250.00
• $1 million to $1.5 million 8% over the first $1 million plus $52,250.00
• Over $1.5 million 10% over the first $1,500,000 plus $92,250.00
• Class B: Brother, Sister, Niece, Nephew, Daughter-In-Law, Son-In-Law First $500 is exempt from tax. The estate over the first $500 is taxed at the following rate:
• $100,000 or less 7% of net taxable value
• $100,000 to $500,000 $7,000 plus 10% over the first $100,000
• $500,000 to $1 million $47,000 plus 12% over the first $500,000
• Over $1 million $107,000 plus 15% over the first million
• Class C: No blood relation, Cousin, Aunt, Uncle, Step-Children, Brother-In-Law, Sister-In-Law. The first $100 is exempt. Estates over the first $100 are taxed at the following rate:
• $100,000 or less 10% of net taxable value
• $100,000 or $1 million $10,000 plus 15% over the first $100,000
• Over $1 million $145,000 plus 20% over the first million