Inheritance and Estate Transfer Taxes

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Inheritance Tax

Who must file

A return must be filed for every succession, by or on behalf of all the heirs or legatees, in every case where inheritance tax is due or where the gross value of the deceased's estate is $15,000 or more. [R.S. 47:2425(A)]

Rate of tax

The heirs or legatees pay tax on the taxable value of their inheritance, legacy, and donation or gift in contemplation of death, at the following rates determined by their relationship to the deceased:

  • Direct descendants by blood or affinity or ascendants -Two percent of the first $20,000 taxable value and three percent of the taxable value in excess of $20,000.
  • Collateral relations of the decedent (including brothers and sisters by affinity and their decendants) - Five percent of the first $20,000 taxable value plus seven percent of the taxable value in excess of $20,000.
  • Stranger or nonrelated person - Five percent of the first $5,000 taxable value plus ten percent of the taxable value in excess of $5,000.

Date returns due

An inheritance tax return must be filed and taxes paid to the Secretary of Revenue within nine months after the death of the decedent in any instance when a tax is due or prior to filing a federal estate tax return.

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Estate Transfer Tax

Who must file

All estates that are subject to federal estate taxation under the Federal Internal Revenue Code must file an Estate Transfer Tax Return.

Rate of tax

If the amount of inheritance taxes paid to the state of Louisiana is less than the amount of the maximum credit for state death taxes set forth in Internal Revenue Code Section 2011(b), Louisiana levies an additional death tax, known as the Louisiana estate transfer tax, equal to the amount by which the maximum credit provided in Internal Revenue Code Section 2011(b) exceeds the amount of inheritance taxes levied. The estate transfer tax does not impose any additional tax burden on the decedent's estate, but merely shifts payment from the federal government to the state.

Effective July 1, 2004. Acts 1997, No. 818, amended R.S. 47:2431 to provide for the levy of an estate transfer tax upon all estates subject to federal estate taxation under Federal Internal Revenue Code. R.S. 47:2432(A), provides that wherever there is a credit allowable under the Internal Revenue Code the maximum amount allowable shall be paid to Louisiana. The language limiting the estate transfer tax to the amount by which the federal state death tax credit exceeds inheritance taxes has been eliminated.

Date tax due

An inheritance tax return must be filed and taxes paid to the Secretary of Revenue within nine months after the death of the decedent in any instance when a tax is due or prior to filing a federal estate tax return.

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