How Federal Estate Taxes and Iowa’s Inheritance Taxes Could Affect Your Estate

For 2025, the current federal estate tax exemption is approximately $13.99 million per individual. That means if the total value of your estate is less than $13.99 million, your estate is not subject to federal estate taxes. That is an increase from $13,610,000 for estates in 2024. For a married couple, this amount is doubled for a total of $27,980,000.

While the lifetime exclusion of $13.99 million will shield most individuals from federal estate taxes, in addition to the estate tax, some states also have inheritance taxes; Iowa was one of those states. The Iowa Inheritance Tax was phased out from 2021 through 2024, and was completely ended for any deaths occurring after January 1, 2025.

If you would like more information about estate and inheritance taxes or have questions about creating or revising your will or estate plan, feel free to contact the Crimmins & Kehm Law Firm at 515-573-2191.