Does california have an estate tax?

California Inheritance and Estate Taxes. This is one area in which California residents really do get a tax break. When federal estate tax laws changed on January 1, 2005, the legislation eliminated California's estate tax, and the state has no inheritance tax. You can die here tax-free. read more

Prior to January 1, 2005, California actually did collect a separate estate tax at the state level, called a "pick-up tax," that was equal to a portion of the overall federal estate tax bill. read more

While California does not have an inheritance tax, the state does have some special tax-related issues that affect beneficiaries. Some money gifted in death may be taxed, despite the lack of a California inheritance tax. read more

When the gift tax does and does not apply, When the estate tax does and does not apply, and; When to file a return for the gift tax or the estate tax. California does not have a gift tax or an inheritance tax. However, California does still impose a death tax equal to the federal credit for state death taxes. read more