Estate taxes are a crucial component of both estate and tax planning, directly affecting how families and individuals strategize to preserve and transfer their wealth. In the United States, both federal and state governments may impose estate taxes, but the rules and thresholds vary. While the federal estate tax applies to larger estates, states like Oregon and Washington have their own estate taxes with lower exemption limits and additional tax rates. Understanding these differences is key to ensuring your estate plan minimizes tax burdens and protects your legacy.
Oregon Estate Tax Rates
Oregon stands out with the lowest estate tax exemption thresholds in the country, which has a significant impact on estate taxation. Without proper planning, individuals and families may encounter unexpected tax liabilities, potentially reducing the assets intended for loved ones or charitable causes and compromising efforts to preserve wealth and legacy. Proactive estate planning is essential to minimize tax burdens, protect assets, and ensure the seamless fulfillment of personal wishes and long-term goals.
Oregon’s estate tax exemption amount of only $1,000,000 was set in 2001 and is not pegged to inflation. So this exemption, and the marginal tax rates below, will be in effect until further revised or repealed by statute.
- $1M to $1.5M = 10% tax rate
- $1.5M to $2.5M = 10.25% tax rate
- $2.5M to $3.5M = 10.5% tax rate
- $3.5M to $4.5M = 11% tax rate
- $4.5M to $5.5M = 11.5% tax rate
- $5.5M to $6.5M = 12% tax rate
- $6.5M to $7.5M = 13% tax rate
- $7.5M to $8.5M = 14% tax rate
- $8.5M to $9.5M = 15% tax rate
- Above $9.5M = 16% tax rate
Washington Estate Tax Rates
Like Oregon, Washington imposes one of the highest estate tax rates in the nation, paired with a relatively low exemption threshold compared to the federal level.
Washington State’s estate tax features rates ranging from 10% to 20% with an exemption threshold of approximately $2.193 million, creating significant tax liabilities for larger estates and underscoring the importance of strategic planning.
- $0 to $1M = 10% tax rate
- $1M to $2M = 14% tax rate
- $2 to $3M = 15% tax rate
- $3M to $4M = 16% tax rate
- $4M to $6M = 18% tax rate
- $6M to $7M = 19% tax rate
- $7M to $9M = 19.5% tax rate
- $9M and up = 20% tax rate
Federal Estate Tax Rates
With its higher exemption threshold compared to most state taxes, the federal estate tax rates primarily affect individuals and families with substantial estates. However, staying informed about federal tax policies is crucial for everyone, as changes in exemption limits or rates can significantly influence how assets are preserved, distributed, and taxed.
In 2025, the federal estate tax exemption is $13,990,000 for individuals and $27,980,000 for married couples. Any amount over this exemption is taxed at 40%.
It’s important to note that these current exemption amounts were established in 2017 under the Tax Cuts and Jobs Act and are currently slated to sunset at the end of this year. Without legislative action before January 1, 2026, the federal estate and lifetime gift tax exemption amounts could decrease to approximately $6,800,000 per person or $13,600,000 per married couple, indexed for inflation.
We have an Estate Tax Calculator!
To calculate your gross estate and estimated Oregon estate taxes, click here.
To calculate your gross estate and estimated Washington estate taxes, click here.
We’re Here to Help
Myatt & Bell provides courtesy consultations with an attorney to discuss estate planning. During this meeting, you’ll explore how tools like wills and trusts can protect your assets, care for your loved ones, minimize taxes, and ensure your wishes are honored. It’s also a chance for you to ask questions, gain clarity about our process, and see how we can guide you in creating an estate plan that brings peace of mind and security for the future.
