The federal death tax rate in this country is currently 35%. There are 22 states that impose an additional tax on top of the federal rate with a state death tax, including Oregon.
So, for the folks who qualify for this death tax, what is the tax penalty for dying in the state of Oregon? Nearly half of a lifetime’s savings.
This table shows combined federal and state death tax rates, according to the Wall Street Journal, for all 22 states:
|State (w/rank)||Rate %||State (w/rank)||Rate %|
|1 New Jersey||54.1||6 Kentucky||45.4|
|2 Maryland||50.9||6 Illinois||45.4|
|3 Indiana||48||6 Hawaii||45.4|
|4 Washington||47.4||6 Minnesota||45.4|
|5 Nebraska||46.7||6 Massachusetts||45.4|
|6 Delaware||45.4||6 Maine||45.4|
|6 Oregon||45.4||7 Iowa||44.8|
|6 North Carolina||45.4||7 Pennsylvania||44.8|
|6 New York||45.4||8 Connecticut||42.8|
|6 Rhode Island||45.4||9 Tennessee||41.2|
|6 Vermont||45.4||10 Ohio||39.6|
Oregon has the sixth highest combined death tax rate in the country.
Why is this significant? A 2008 study by the Connecticut Department of Revenue Services found that:
“… the states without an estate [death] tax produced twice as many jobs from 2004-07 and had a growth rate 50% faster than those with estate taxes.”
The “folks” that qualify for the death tax penalty in Oregon are mostly family business owners, ranchers, farmers and retirees.
It’s nearly impossible for a family business, family farm or ranch to survive for the next generation when the tax collector takes a 45% cut.
The logical decision would be to move to a state that doesn’t have a death tax. Those states are welcoming the businesses, the jobs, and the competitive advantage.
Learn more by visiting the Oregon Transformation website