Federal Estate Tax
Figures verified October 17, 2026 against IRS Form 706 instructions · Update log
Short answer
For deaths in 2026, an estate owes federal estate tax only if it is worth more than $15,000,000 per person ($30 million for a married couple using portability). The tax is 40% on the amount above that, paid by the estate, not the heirs. The 2027 figure has not been published by the IRS yet; it is expected late October to November 2026.
Overview
The federal estate tax is a tax on the transfer of property upon death. It is imposed by the Internal Revenue Service (IRS) on the estate of a deceased person before assets are distributed to beneficiaries. The federal estate tax applies to all U.S. citizens and residents, regardless of which state they live in.
In addition to the federal estate tax, 13 jurisdictions impose their own state-level estate tax. Estates in those states may owe both federal and state estate tax. See our state estate tax hub for details on each state. To run the numbers, use the estate tax calculator; for the return itself, see the Form 706 guide.
2026 Federal Estate Tax Exemption
For deaths in 2026, the federal estate tax exemption (the "basic exclusion amount") is $15,000,000 per person. Estates at or below this amount owe no federal estate tax. A surviving spouse can add the unused exemption of the first spouse to die through portability, which lets a married couple shelter up to $30 million.
The $15 million amount was set by the July 4, 2025 tax law (Public Law 119-21, often called the "One Big Beautiful Bill Act"; the IRS now calls it the Working Families Tax Cuts law). It is permanent: the earlier rule that would have cut the exemption roughly in half after 2025 no longer applies. Starting with deaths in 2027, the amount is adjusted each year for inflation. Forecasters project about $15.48 million for 2027; we will update this page when the IRS publishes the official figure.
The same $15 million covers lifetime taxable gifts and the generation-skipping transfer tax. The annual gift tax exclusion is $19,000 per recipient in 2026 (see the annual gift tax exclusion guide).
| Year of death | Exemption per person |
|---|---|
| 2026 | $15.00 million |
| 2025 | $13.99 million |
| 2024 | $13.61 million |
| 2023 | $12.92 million |
| 2022 | $12.06 million |
| 2021 | $11.70 million |
| 2020 | $11.58 million |
Federal Estate Tax Rates
The federal estate tax uses a graduated rate structure with rates ranging from 18% to 40%. The top rate of 40% applies to taxable amounts exceeding $1 million above the exemption. In practice, because of the high exemption amount, most estates that owe federal estate tax are subject to rates at or near the top rate.
| Taxable Amount | Tax Rate |
|---|---|
| $0 – $10,000 | 18% |
| $10,001 – $20,000 | 20% |
| $20,001 – $40,000 | 22% |
| $40,001 – $60,000 | 24% |
| $60,001 – $80,000 | 26% |
| $80,001 – $100,000 | 28% |
| $100,001 – $150,000 | 30% |
| $150,001 – $250,000 | 32% |
| $250,001 – $500,000 | 34% |
| $500,001 – $750,000 | 37% |
| $750,001 – $1,000,000 | 39% |
| Over $1,000,000 | 40% |
Source: IRS.gov
IRS Form 706
The federal estate tax return is filed on IRS Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return). Form 706 must be filed if the gross estate, plus adjusted taxable gifts, exceeds the filing threshold (which is equal to the exemption amount).
The form is due 9 months after the date of death. An automatic 6-month extension of time to file may be obtained by filing Form 4768, but the extension does not extend the time to pay any tax due.
Even if no tax is owed, Form 706 may need to be filed to elect portability of the unused exemption to a surviving spouse. Estates that were not otherwise required to file can elect portability late, up to the fifth anniversary of the death, under Rev. Proc. 2022-32. For forms and instructions, visit the IRS Form 706 page.
Portability
The federal estate tax allows portability of the deceased spousal unused exclusion (DSUE) amount. This means that when the first spouse dies, any unused portion of their estate tax exemption can be transferred to the surviving spouse by filing Form 706, even if no tax is owed.
Of the states with their own estate tax, only Hawaii and Maryland allow portability of the state exemption. In the other states, an unused state exemption is lost at the first death.
States with Their Own Estate Tax
In addition to the federal estate tax, the following 13 jurisdictions impose their own estate tax:
Official Resources
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.