For people who die in 2026, the federal estate tax basic exclusion amount is $15,000,000 per person, per the IRS. A married couple can potentially shield up to $30 million using portability. The top federal rate on amounts above the exemption is 40%. Most families owe no federal estate tax, but some states have their own, lower thresholds.
The IRS lists the basic exclusion amount for the year of death as $15,000,000 for 2026. A 2025 law (Public Law 119-21) increased the amount to that level; the IRS notes the change on its "What's New – Estate and Gift Tax" page. Before it, the 2025 figure was $13,990,000. Estates under the threshold generally do not owe federal estate tax, and most simple estates do not need to file an estate tax return.
The exemption is not a tax on every inheritance. The tax applies to the value of the estate (plus certain lifetime taxable gifts) above the exclusion, after deductions for debts, administration costs, assets passing to a surviving spouse, and gifts to qualified charities.
| Year of death | Basic exclusion amount |
|---|---|
| 2022 | $12,060,000 |
| 2023 | $12,920,000 |
| 2024 | $13,610,000 |
| 2025 | $13,990,000 |
| 2026 | $15,000,000 |
Source: IRS, "What's New – Estate and Gift Tax." Checked October 2026.
Assets left to a U.S.-citizen spouse generally qualify for the unlimited marital deduction, so no federal estate tax is due at the first death. The IRS also allows the executor of the first spouse to die to elect portability, which passes the unused exclusion to the surviving spouse. The election is made on a timely filed Form 706, even when the estate is below the filing threshold. Without that election, the unused amount can be lost. Combined, the two exclusions can reach $30 million in 2026, if the first spouse used none.
Gifts up to the annual exclusion ($19,000 per recipient for 2026, per the IRS) do not count against your lifetime exemption and generally need no gift tax return. Larger gifts require Form 709 and reduce the exemption left at death. Gift splitting between spouses can double the per-recipient amount.
Yes. About a dozen states and the District of Columbia levy a state estate tax, and several states have thresholds far below the federal $15 million. A few states also have an inheritance tax paid by the heirs. Rules and thresholds change, so check your state's revenue department site for the current figure. Whether the federal exemption applies to you and whether a state tax does are two separate questions.
Yes. The estate tax is only one reason to plan. A will names who receives your property and who cares for minor children; without one, state intestacy law decides (see what happens if you die without a will). Beneficiary designations on retirement accounts and life insurance override your will, so keep them current (beneficiary designations guide). A revocable living trust can help avoid probate (living trust vs will).
For a straightforward estate, an online service can produce a will or trust at a fraction of attorney fees. Trust & Will is the service we link to for complete will and trust packages; compare its current pricing on its own site. If your estate is near or above $15 million, or you own a business or farm, talk to an estate attorney and a CPA instead of relying on software.
The 2026 figure is set by current law, but Congress can change tax law at any time. We update this page when the IRS publishes new figures. For 2027, the IRS typically announces inflation-adjusted amounts in the fall.
The IRS lists the basic exclusion amount as $15,000,000 per person for people who die in 2026.
The top federal estate tax rate is 40% on the taxable amount above the available exclusion.
Up to $30 million combined is possible if the first spouse used none of their exclusion and the executor elects portability on Form 706.
$19,000 per recipient, per the IRS. Gifts at or under that amount generally need no gift tax return.
There is no federal inheritance tax. Estate tax is paid by the estate, and a few states levy a separate inheritance tax on heirs.
Yes. A will or trust controls who receives your assets and who guards minor children; the estate tax threshold does not change that.
Usually not, unless your gross estate plus adjusted taxable gifts exceeds the filing threshold, or you want to elect portability for a surviving spouse.
Sources: IRS What's New – Estate and Gift Tax; IRS Estate Tax.
Our 60-second quiz points you to the right service.
Take the Free Quiz →