Marital deduction

From the 2024 DOR Tax Exemption Study

83.100.047 - Marital deduction Description The decedent’s estate may deduct the value of property passed to a surviving spouse or state-registered domestic partner for: - Property passing by election. - Property providing an income interest for the life of the surviving spouse or domestic partner when the proper election is made. Purpose Postpones exposure to estate tax for assets passed to a surviving spouse until the surviving spouse’s death. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $390.000 $390.000 $390.000 $390.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $292.500 $390.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, which impacts the marital deduction for deaths occurring on or after January 1, 2025. - All payments are made timely at the 9-month due date. - The first payments would be due on October 1, 2025, resulting in nine months of impact in fiscal year 2026. - An average of 650 estates per year take the ma