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Texas Taxes

Inheritance Tax

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Estates that exceed the minimum federal estate tax filing requirement must file an Inheritance Tax return and pay any applicable tax based on the federal credit for state death taxes.

Please note that no state inheritance return is required on estates with a date of death on or after January 1, 2005.

Inheritance Tax Interest Rates

Effective for taxes due on or after January 1, 2000, the interest rate on delinquent taxes is a variable rate. This reflects a law change to a variable interest rate based on the prime rate plus one percent, as published in the Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday.

Interest Rates (Year 2000 to Current Year)

  • 2009 - 4.25 percent
  • 2008 - 8.25 percent
  • 2007 - 9.25 percent
  • 2006 - 8.25 percent
  • 2005 - 6.25 percent
  • 2004 - 5.00 percent
  • 2003 - 5.25 percent
  • 2002 - 5.75 percent
  • 2001 - 10.50 percent
  • 2000 - 9.50 percent.

Interest rates prior to January 1, 2000

  • 10% per annum simple interest for due dates prior to September 1, 1991
  • 12% compounded monthly for due dates on or after September 1, 1991, through December 31, 1993
  • 12% per annum simple interest from January 1, 1994, through December 31, 1999, on all outstanding tax balances.

The interest begins to accrue nine months after the day of death of the decedent on whose estate the tax is determined or, in the case of taxes on generation-skipping transfers, on the original due date of the taxes.

Rate Details and Other Information

Rates

Estates that exceed the minimum federal estate tax filing requirement must file an Inheritance Tax return and pay any applicable tax based on the federal credit for state death taxes.

Due Date

Nine months after date of death.

Electronic Reporting

Not at this time.

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