In general, the tentative federal gift or estate tax is calculated by referencing the taxable gift or estate to the following table. The net gift or estate tax is obtained by reducing the tentative tax by the amount of available unified gift or estate tax credit, credits for state and foreign death taxes, and gift taxes paid on certain prior transfers.
The federal gift tax return (Form 709) and federal estate tax return (Form 706) for current and prior years, accompanying instructions, and related publications can be found at the IRS web site.
| Column A | Column B | Column C | Column D |
| Rate of tax | |||
| Taxable | Taxable | Tax on | on excess |
| amount | amount | Amount in | over amount |
| over-- | not over-- | Column A | in Column A |
| - - - - | $10,000 | - - - - - | 18% |
| $10,000 | 20,000 | $1,800 | 20% |
| 20,000 | 40,000 | 3,800 | 22% |
| 40,000 | 60,000 | 8,200 | 24% |
| 60,000 | 80,000 | 13,000 | 26% |
| 80,000 | 100,000 | 18,200 | 28% |
| 100,000 | 150,000 | 23,800 | 30% |
| 150,000 | 250,000 | 38,800 | 32% |
| 250,000 | 500,000 | 70,800 | 34% |
| 500,000 | 750,000 | 155,800 | 37% |
| 750,000 | 1,000,000 | 248,300 | 39% |
| 1,000,000 | 1,250,000 | 345,800 | 41% |
| 1,250,000 | 1,500,000 | 448,300 | 43% |
| 1,500,000 | 2,000,000 | 555,800 | 45% |
| 2,000,000 | 2,500,000 | 780,800 | 49% |
| 2,500,000 | 3,000,000 | 1,025,800 | 50% |
| Top Gift | |
| and Estate | |
| Year | Tax Bracket |
| 2003 | 49% |
| 2004 | 48% |
| 2005 | 47% |
| 2006 | 46% |
| 2007 | 45% |
| 2008 | 45% |
| 2009 | 45% |
| 2010 | 35% (Gift Tax Only) |
| 2011 | 55% |
A unified credit is available to reduce both the federal gift tax and the estate tax. The credit must be subtracted from any gift tax owed. Any credit used against the gift tax in one year reduces the amount of credit that can be used against gift tax in a later year. The total amount used against gift tax during an individual's lifetime reduces the credit available to use against the decedent's estate tax.
The amount of gift tax credit available for transfer in 2002 through 2010 is $345,800. This offsets tax on cumulative gifts of up to $1 million.
The following table shows the amount that can is sheltered by the estate tax credit for the calendar year in which a decedent dies. These amounts would be reduced by prior lifetime taxable gifts for which the gift tax credit was used.
| Unified Credit | |
| Equivalent | |
| Year | Amount |
| 2002 - 2003 | $1,000,000 |
| 2004 - 2005 | $1,500,000 |
| 2006 - 2008 | $2,000,000 |
| 2009 | $3,500,000 |
| 2010 | Estate Tax Repealed |
| 2011 | $1,000,000 |