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Tax Rates for 2010

NOTE This information is out of date. See a listing of recent tax-related articles for more current information about taxes and their fundraising implications.

Given the delays in passing healthcare reform, the Senate did not act on estate taxes at the end of 2009. As a result, the estate tax and GSTT were repealed on January 1, 2010. The gift tax is retained with a 35% rate, and there is a step up in basis for estate assets of $1.3 million. Spouses will be able to benefit from an added step up in basis on assets valued at $3,000,000. Other assets will not receive a step up in basis.

However, because both Senate Finance Committee Chair Max Baucus (D-MT) and Budget Committee Chair Kent Conrad (D-ND) favor an extension of the $3.5 million exemption and 45% estate tax rate, Congress may take action on estate taxes in 2010.

Gift & Estate Tax Exemptions
YearGift ExemptionEstate ExemptionTop Rate
2009$100,000,000$3,500,00045%
2010$1,000,000Repealed35%
2011$1,000,000$1,000,00055%
Notes: The lifetime gift tax exemption is frozen at $1 million. The annual exclusion in 2010 is $13,000.
Personal Income Tax Rates for 2010
RateJointSingle
10%0-$16,7500-$8,375
15%$16,751-68,000$8,376-34,000
25%$68,001-137,300$34,001-82,400
28%$137,301-209,250$82,401-171,850
33%$209,251-373,650$171,851-373,650
35%$373,651 +$373,651 +
Notes: $3,650 is the annual personal exemption. The standard deductable for couples is $11,400 and for an individual is $5,700.