President Donald Trump on Friday plans to slash the estate tax for the first $1 million of taxable income for a family of four starting in 2018.
Trump, who announced his plans for the year at a news conference at the White House, would eliminate the tax on estates worth more than $3 million.
Trump’s plan would only apply to individuals who are married filing jointly.
The tax would be eliminated for individuals who own multiple properties in the same state.
Trump said he would take a more balanced approach to the estate-tax system, cutting the number of tax brackets, and making the estate taxed at a lower rate for people who have lived in the U.S. for years.
The Trump administration on Friday said that the tax cuts would reduce federal revenues by $10.2 trillion in 2018, while increasing taxes for taxpayers and businesses.
The Treasury Department expects the $2,000 threshold will fall to $1.6 million by 2027, with the $10,000 limit phased out by 2024.
Trump has said that he would cut the estate taxes for all but the richest Americans.