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The rates range from 18% to 40%, and the giver generally pays the tax. For decedents that die on or after june 8, 1982, and before january 1, 2005, a california estate tax return is required to be filed with the state controller's office if a federal estate tax return. Alex Marie Faris Stretch Twill Suiting Skirt Suiting The proposed california gift and transfer tax rate will be equal to the marginal federal transfer tax rate imposed on lifetime gifts and transfers at death—essentially a 40%. California gift tax percentage . The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. Retirement accounts and pension plans are fully taxed, though social security is exempt. Of this, 6 percent goes to the state and the remaining 1.25 percent goes to county and city. The gift tax originated to prevent someone gifting their estate before death to avoid the estate tax. If you are a beneficiary, yo...