Whether an estate has to pay Ohio estate tax depends on the size of the estate and the nature and extent of any estate planning that was done. If everything is left to a surviving spouse, there is no estate tax because of an unlimited marital deduction. Estate tax returns must be filed even though no tax is due. If the decedent was not married and the estate exceeds $338,333, estate taxes are payable. Ohio taxes the net estate (gross estate less the deductions) at the following rates.
- Up to $338,333 – tax free
- $338,334 to $500,000 – 6% tax rate
- Over $500,000 – 7% tax rate
Even if the estate is less than $338,333, an Ohio Form 22 must be filed if there is real estate involved in the estate. This is public notice that there was no Ohio estate tax due on the estate to remove any Ohio estate tax lien against the real estate.
Click here for a link to a visual representation of the current Ohio Estate Tax Law.