Before diving into the complex estate tax calculations and filing procedures, let’s first establish a clear understanding. “Estate tax” refers to the tax imposed by the government on the assets left behind by a deceased person, including movable property, real estate, and all rights with financial value. This tax must be paid in full before the inheritance is transferred to the heirs. In simple terms, it means “tax first, inherit later”.
There is an order of obligation for estate tax payment. According to the law, it is as follows:
These taxpayers are obligated to complete the filing and payment within the prescribed period to ensure the smooth progress of the subsequent inheritance procedures.
The good news is that not all estates are subject to taxation. The government sets an “exemption amount”, meaning that if the total value of the estate falls below this threshold, no estate tax is required. According to the latest announcement from Taiwan’s Ministry of Finance, the estate tax exemption amount applicable from 2024 onward is:
In other words, if the total value of the deceased’s estate does not exceed NT$13.33 million, the heirs are not required to pay any estate tax. However, they must still complete the filing process and obtain an “Estate Tax Exemption Certificate”.
In addition to the exemption amount, the law also provides several “deductions” that can further reduce the taxable value of the estate. These deductions are designed to ensure the basic livelihood of the heirs. The following are the main deduction items applicable in 2025:
| Deduction Item | Eligible Recipient |
Deduction Amount (NTD) |
| Spouse Deduction |
Spouse of the Deceased |
NT$4.93 million |
| Lineal Descendant Deduction | Children, Grandchildren, and Other Lineal Descendants | NT$500,000 per person (additional deduction for minors based on age) |
| Parent Deduction | Parents of the Deceased | NT$1.23 million per person |
| Severe Disability Deduction | Spouse, Parents, or Lineal Descendants with Severe Disabilities | NT$6.18 million per person |
| Dependent Sibling or Grandparent Deduction | Must Meet Specific Support Conditions | NT$500,000 per person |
| Funeral Expense Deduction | Regardless of Actual Expenses Incurred | NT$1.23 million |
After subtracting all applicable exemption amounts and deductions from the total estate value, the remaining “taxable estate net amount” is what is subject to taxation. Taiwan’s estate tax uses a progressive tax rate system divided into three brackets:
|
Taxable Estate Net Amount |
Tax Rate | Progressive Difference (NTD) |
| NT$50 million or less | 10% | NT$0 |
| Over NT$50 million up to NT$100 million | 15% | NT$2.5 million |
| Over NT$100 million | 20% | NT$7.5 million |
Once you understand the basic components, calculating estate tax is essentially like solving a math problem. By mastering the following core formula, you can easily work it out:
(Total Estate − Exemption Amount − Deductions) × Tax Rate − Progressive Difference = Payable Estate Tax
First, you must take inventory of all assets owned by the deceased. This includes but is not limited to:
After determining the total estate value, you can begin subtracting the “exemption amount” and all applicable “deductions” mentioned earlier.
Taxable Estate Net Amount = Total Estate − NT$13.33 million (Exemption Amount) − (Sum of All Applicable Deductions)
The final step is to match the calculated “taxable estate net amount” with the tax rate bracket table to determine the total tax payable.
【Example Scenario】
Mr. Wang passed away, leaving an estate totaling NT$60 million. His heirs are his spouse, Mrs. Wang, and a 25-year-old son.
➡️ Therefore, Mr. Wang’s heirs are required to pay NT$4.001 million in estate tax.
When it comes to filing estate tax, many people feel overwhelmed. Don’t worry, we’ve broken down the entire process into six main steps. By following them step by step, you can complete the filing smoothly.
This is the first step in the entire process. After a family member passes away, you must register the death at the Household Registration Office within 30 days and apply for the “Household Deregistration Transcript”.
To ensure that no assets are overlooked, heirs can apply at the National Taxation Bureau for a comprehensive report of the deceased’s assets. This record serves as an essential reference for the subsequent filing process.
Based on the asset list obtained from the National Taxation Bureau, along with any additional known assets (such as personal loans), begin filling out the “Estate Tax Return Form”. The form can be obtained from the National Taxation Bureau or downloaded online.
After preparing all required documents, submit the filing to the National Taxation Bureau in the area where the deceased was registered at the time of death. You may file in person at the counter or submit it online through the Ministry of Finance’s Electronic Filing and Payment Service website.
After the National Taxation Bureau completes its review, it will issue a “Tax Assessment Notice”. If there is tax payable, you can obtain the “Estate Tax Payment Certificate” after completing the payment. If no tax is due, you will receive the “Estate Tax Exemption Certificate”. This document is essential for processing ownership transfers.
Once you have received the certificate, bring it to the appropriate offices such as the Land Administration Office, Motor Vehicle Office, or bank to officially transfer the deceased’s assets (such as houses, land, vehicles, and deposits) to the heirs’ names.
According to regulations, the taxpayer must file the estate tax within six months from the date of the deceased’s death. If it is not possible to file within the deadline, a written request for an extension can be submitted to the National Taxation Bureau before the deadline expires. The extension is usually granted for up to three months.
If the tax payable exceeds NT$300,000 and paying in cash is difficult, you may apply for installment payments (up to 18 installments, with each interval not exceeding two months) or request to pay the tax with physical assets such as the deceased’s bank deposits or publicly listed company stocks.
Yes. This is known as “deemed inheritance”. To prevent individuals from transferring assets through gifts before death to avoid estate tax, the law stipulates that any assets given to the spouse, lineal descendants, parents, siblings, or their spouses within two years before death must be included in the total estate value and taxed accordingly. This is an important point to keep in mind when planning wealth transfer and estate management.
Both methods are equally valid. The advantage of online filing is that it can be done 24 hours a day without time or location restrictions, making it suitable for individuals with straightforward cases and familiarity with computers. In-person filing allows direct consultation with tax officers, making it more suitable for complex cases or those unfamiliar with online systems, as immediate assistance can be provided.
Dealing with a loved one’s passing is already a heavy burden, and the complicated process of filing estate tax can add even more pressure. In summary, as long as you grasp the three core principles of “understanding the calculation formula, preparing the required documents, and following the procedures”, you can complete the filing in an organized manner. From the latest exemption amounts, deductions, and tax rates to detailed calculation instructions and the six major filing steps, this article aims to provide you with the clearest and most practical guidance.
Remember, filing estate tax is not only a legal obligation but also an essential step in protecting inheritance rights. If the estate structure is complex or involves cross-border assets, seeking help from a professional accountant or lawyer can more effectively safeguard your rights and ensure that the entire process is legal and smooth.
