QUESTION:

How is Indiana Inheritance tax calculated?

ANSWER:

Indiana Inheritance tax is calculated on a graduated scale. The percentage depends on whether the person receiving the property is a Class A, Class B, or Class C transferee, and on the value of the property transferred.

If the person receiving the property is a Class A transferee, then the inheritance tax starts at 1% of the value of the property transferred and gradually increases to 10% when the value exceeds $1,500,000.

If the person receiving the property is a Class B transferee, then the inheritance tax starts at 7% of the value of the property transferred and gradually increases to 15% when the value exceeds $1,000,000.

If the person receiving the property is a Class C transferee, then the inheritance tax starts at 10% and gradually increases to 20% when the value exceeds $1,000,000.