People pay plenty of different kinds of taxes. You file an income tax return every spring, pay sales taxes when you buy things, and pay property taxes if you own a home. These taxes apply to nearly everyone.

By contrast, not many people ever have to worry about paying estate and gift taxes. These taxes are currently structured to give people a relatively large exemption before they ever have to pay money out of pocket. However, because any tax that is due can be substantial, it's important to know how those taxes work -- and what the future might bring. Below, you'll find the latest on what's happening with estate and gift tax rates and exclusions in 2023.

The way the estate tax works is still relatively complicated. Technically, there are 12 brackets that go into the estate tax calculation, running from 18% to 40%. However, the way that lawmakers handle giving most people an exemption from the estate tax basically makes all those lower brackets moot. As a result, anyone who has a taxable estate above the lifetime exemption can expect to pay 40% in estate tax.

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Source Fool.com