When Governor John Kasich signed Amended Substitute House Bill 153 on June 30, 2011, Ohio taxpayers received the second piece of good news regarding estate taxes in less than seven months. In December 2010, the federal estate and gift tax exemptions were increased to $5 million until at least the end of 2012 and now, as of December 31, 2012, the Ohio estate tax will be repealed.
The Ohio estate tax, which is a tax independent of the federal estate tax (unlike most other states), has a maximum rate of 7 percent and an exemption amount of $338,333--one of the lowest exemptions of any state. Eighty percent of the tax owed is returned to the local government where the decedent was a resident, with the remaining 20 percent passing to the state.
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