Title 26 — Internal Revenue CodeRelease 119-73
§2641 Applicable Rate
Title 26 › Subtitle Subtitle B— Estate and Gift Taxes › Chapter 13— TAX ON GENERATION-SKIPPING TRANSFERS › Subchapter E— Applicable Rate; Inclusion Ratio › § 2641
Summary
The tax rate on a generation-skipping transfer is the maximum federal estate tax rate multiplied by the transfer's inclusion ratio. The maximum rate used is the top estate tax rate in effect when the taxable distribution, taxable termination, or direct skip happens.
Full Legal Text
Title 26, §2641
Internal Revenue Code — Source: USLM XML via OLRC
(a)For purposes of this chapter, the term “applicable rate” means, with respect to any generation-skipping transfer, the product of—
(1)the maximum Federal estate tax rate, and
(2)the inclusion ratio with respect to the transfer.
(b)For purposes of subsection (a), the term “maximum Federal estate tax rate” means the maximum rate imposed by section 2001 on the estates of decedents dying at the time of the taxable distribution, taxable termination, or direct skip, as the case may be.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to generation-skipping transfers (within the meaning of section 2611 of this title) made after Oct. 22, 1986, except as otherwise provided, see section 1433 of Pub. L. 99–514, set out as a note under section 2601 of this title. Modification of Generation-Skipping Transfer Tax Pub. L. 111–312, title III, § 302(c), Dec. 17, 2010, 124 Stat. 3302, provided that: “In the case of any generation-skipping transfer made after
December 31, 2009, and before
January 1, 2011, the applicable rate determined under section 2641(a) of the Internal Revenue Code of 1986 shall be zero.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 2641
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73