Florida Statute 198.02
“Tax upon estates of resident decedents”
What it means
Section 198.02 is Florida's estate tax on residents — but it collects nothing today. The tax was written as a 'pick-up' tax: it equals the credit for state death taxes once allowed against the federal estate tax, reduced by death taxes paid to other states. Congress phased out that federal credit, eliminating it for deaths after December 31, 2004. With no federal credit to pick up, the Florida tax computes to zero. The statute is still on the books, and Florida's constitution bars any estate tax beyond that federal credit, so no Florida estate tax is owed on deaths since 2005.
- Florida's estate tax equals the old federal credit for state death taxes — a 'pick-up' or 'sponge' tax.
- Congress eliminated that federal credit for deaths after December 31, 2004, leaving nothing to pick up.
- The result: no Florida estate tax is due on any death since 2005, though the statute remains on the books.
- Florida also imposes no inheritance tax on beneficiaries.
How it plays out
We raise this only to put it to rest. Clients hear 'estate tax' and worry Florida will take a share; it will not. Section 198.02 has produced a zero bill for every death since 2005, and the state constitution forbids reviving it beyond the vanished federal credit. What can still apply is the federal estate tax, which touches only very large estates. For almost everyone we work with, the Florida estate-tax question is answered in one word — none — and we move on to the issues that actually affect the estate.
Questions people ask
