Current and Projected 2013 Federal Income, Estate, Gift and GST Top Tax Rates
Under Current law as of October 1, 2012
| Type of Income |
2012 |
2013 |
| Earned income (1) |
35.0% |
39.6% |
| Traditional IRA withdrawals |
35.0% |
39.6% |
| Pension and qualified plan distributions |
35.0% |
39.6% |
| Tax exempt bond interest |
0.0% |
0.0% |
| Interest income |
35.0% |
43.4% |
| Qualified dividend income |
15.0% |
43.4% |
| Short term capital gains |
35.0% |
43.4% |
| Long term capital gains |
15.0% |
23.8% |
| Trade or business income(1) |
35.0% |
39.6% |
| S corporation distributions to active participants |
35.0% |
39.6% |
| S corporation distributions to inactive shareholders |
35.0% |
43.8% |
| Capital gains on property used in a business |
15.0% |
20.0% |
| (1) This income is subject to FICA, Medicare or self-employment taxes | ||
| Gift, Estate and GST Taxes |
2012 |
2013 |
| Gift, estate and GST rates |
35.0% |
55.0% |
| Estate tax exemption phase out rate (2) |
35.0% |
60.0% |
| Gift tax exemption |
$5,120,000 |
$1,000,000 |
| Estate tax exemption |
$5,120,000 |
$1,000,000 |
| GST tax exemption |
$5,120,000 |
$1,430,000 |
| Annual exclusion |
$13,000 |
$14,000 |
| (2) The phase out is for taxable estates over $10,000,000 so that entire estate tax is 55% | ||
Prepared by Edward Mendlowitz, CPA, Partner WithumSmith+Brown based on information believed to be correct. Readers are cautioned that the 2013 rates are expected to change and they should check with their tax advisor before entering into any transaction. This comparison has been prepared for informational purposes only.
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