You asked what other states’ gift tax thresholds are.

SUMMARY

Only three states in addition to Connecticut have state gift taxes. They are: Louisiana, North Carolina, and Tennessee. Two other states, Delaware and New York, recently repealed their state gift taxes, Delaware as of January 1, 1998 and New York as of January 1, 2000.

Louisiana and North Carolina have current annual gift tax thresholds of $ 11,000. Tennessee’s threshold varies depending on the donor’s relationship to the recipient.

LOUISIANA

Louisiana’s annual gift tax exclusion is linked to the federal exclusion, which is indexed for inflation. Thus, for 2004 and 2005, Louisiana’s exclusion is $ 11,000. In addition to the annual exclusion, Louisiana allows a maximum lifetime exclusion of $ 30,000.

Louisiana’s gift tax rates are 2% of the value of taxable gifts up to $ 15,000 and 3% of the value over that amount.

NORTH CAROLINA

Like Louisiana, North Carolina links its annual gift tax exclusion to the federal one, making its current exclusion $ 11,000.

North Carolina divides gift recipients into classes for purposes of its gift tax, with the classes depending on a recipient’s relationship to a donor. Class A includes a donor’s lineal descendants and ancestors, such as parents, children, grandchildren, and adopted or stepchildren. Collateral relatives, such as brothers, sisters, aunts, and uncles, are in Class B. Every other recipient is in Class C.

All transfers to the donor’s spouse are tax-exempt. In addition, there is a $ 100,000 lifetime exclusion for transfers to Class A recipients.

North Carolina’s gift tax rates range from 1%-12% for taxable gifts to Class A, 4%-16% for taxable gifts to Class B, and 8%-17% for taxable gifts to Class C.

TENNESSEE

Tennessee’s annual gift tax exemption varies according to the relationship between the donor and the recipient. Up to 50% of the value of a gift to a spouse is exempt. For Class A recipients (spouse; children; lineal ancestors and descendents; siblings; stepchildren, sons- and daughters-in-law; and, if the donor has no grandchildren, nieces and nephews), the exemption is $ 10,000 for the class and $ 11,000 for a single Class A recipient. For Class B recipients (everyone not included in Class A), the exemption is $ 5,000 for the class and $ 3,000 for a single Class B recipient.

Tennessee’s gift tax rates range from 5. 5% to 9. 5% for taxable gifts to Class A and 6. 5% to 16% for taxable gifts to Class B.

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