I.C. 6-4.1-3-7 states that transfers to a spouse are completely exempt from Indiana inheritance tax. I.C. 6-4.1-3-91 states that each heir or beneficiary of a decedent's estate is divided into three (3) classes; each class is entitled to a specific exemption.

Class A:
Spouse, Children, Grandchildren, Parents. Effective July 1, 1997, the first $100,000.00 of an estate going to an heir in Class A is exempt of inheritance tax. Estates over the first $100,000.00, the tax is as follows:

• $25,000 or less: 1% of net taxable value.
  
• Over $25,000 but not over $50,000:
  $250, plus 2% of net taxable value over $25,000
  
• Over $50,000 but not over $200,000:
  $750, plus 3% of net taxable value over $50,000
  
• Over $200,000 but not over $300,000:
  $5,250, plus 4% of net taxable value over $200,000
  
• Over $300,000 but not over $500,000:
  $9,250, plus 5% of net taxable value over $300,000
  
• Over $500,000 but not over $700,000:
  $19,250, plus 6% of net taxable value over $500,000
  
• Over $700,000 but not over $1,000,000:
  $31,250, plus 7% of net taxable value over $700,000
  
• Over $1,000,000 but not over $1,500,000:
  $52,250, plus 8% of net taxable value over $1,000,000
  
• Over $1,500,000:
  $92,250, plus 10% of net taxable value over $1,500,000

• $100,000 or less:
  7% of net taxable value
  
• Over $100,000 but not over $500,000:
  $7,000, plus 10% of net taxable value over $100,000
  
• Over $500,000 but not over $1,000:
  $47,000, plus 12% of net taxable value over $500,000
  
• Over $1,000,000:
  $107,000, plus 15% of net taxable value over $1,000,000

• $100,000 or less:
  10% of net taxable value
  
• Over $100,000 but not over $1,000,000:
  $10,000, plus 15% of the net taxable value over $100,000
  
• Over $1,000,000:
  $145,000, plus 20% of net taxable value over $1,000,000