What is the federal estate tax exemption in 2026?

In 2026 each person can pass $15 million free of federal estate tax, made permanent by the 2025 law. The amount above the exemption is taxed at a flat 40%. With portability a married couple can shelter up to $30 million.

Portability lets a surviving spouse add a deceased spouse's unused exemption (the DSUE) to their own — but only if the executor files Form 706 within nine months of the first death. Missing that filing forfeits the unused exemption.

Does the federal exemption protect me from state estate tax?

No. Twelve states and DC levy their own estate or inheritance tax with much lower thresholds — some as low as $1 million — so a state bill can apply even when no federal tax is due.

United States · 2026

US Estate Tax Calculator

Estimate federal estate tax — the $15 million exemption per person, the 40% rate on the excess, spousal portability up to $30 million, and the unlimited marital and charitable deductions.

The estate

Gross estate value Everything owned: property, investments, business, life insurance you owned

Deductions

Debts, mortgages & expenses

Passing to spouse Unlimited marital deduction (US-citizen spouse)

Charitable bequests

Exemption

Prior taxable gifts Lifetime gifts over the annual exclusion — these use up the exemption

Add a deceased spouse's unused exemption (portability)

Deceased spouse's unused exemption (DSUE)

The computation

Gross estate$0

less debts & expenses$0

less marital deduction$0

less charitable bequests$0

Taxable estate$0

less exemption$0

Amount over exemption$0

Estate tax at 40%$0

Federal estate tax due

—

Exemption available

Taxable estate

Effective rate on estate

Passes to heirs

📋

Form 706: a federal estate tax return is due 9 months after death (6-month extension available). It's also how a surviving spouse elects portability — file it even when no tax is due, or the unused exemption is lost forever.

How US estate tax works

The federal estate tax applies to what you transfer at death, but only above a very high floor. In 2026 each person has a $15 million exemption — made permanent by the 2025 law — and only the amount above it is taxed, at a flat 40%. Because of that exemption, fewer than 1 in 1,000 estates owe any federal estate tax at all.

Deductions that shrink the estate

Before the exemption, you subtract debts and expenses, anything passing to a US-citizen spouse (unlimited marital deduction), and charitable bequests. What's left is the taxable estate. Lifetime gifts above the annual exclusion don't escape — they reduce the exemption available at death, since the estate and gift taxes share one unified amount.

Portability — and the filing trap

A married couple can shelter up to $30 million through portability: the survivor adds the first spouse's unused exemption to their own. But it isn't automatic — the executor must file Form 706 within nine months of the first death to claim it. Skipping that filing on a "non-taxable" estate is one of the most expensive mistakes in estate planning.

Frequently asked questions

How much can I leave tax-free?

$15 million per person in 2026, or up to $30 million for a married couple using portability. Only the amount above the exemption is taxed, at 40%.

Are gifts to my spouse taxed?

No — transfers to a US-citizen spouse are fully deductible under the unlimited marital deduction, whether during life or at death. (A non-citizen spouse needs a QDOT.)

Does the federal exemption cover state tax?

No. Several states tax estates or inheritances at much lower thresholds, so plan for state tax separately even if no federal tax is due.

Educational estimate — not legal or tax advice. US 2026: federal estate & gift exemption $15,000,000 per person (permanent, inflation-indexed), 40% rate on the taxable amount above the exemption (the graduated 18–40% schedule is absorbed by the unified credit), spousal portability of unused exemption, unlimited marital and charitable deductions, prior taxable gifts reducing the exemption. It excludes state estate/inheritance taxes, the generation-skipping transfer tax, valuation discounts, trusts (QDOT, credit shelter, ILIT), and the gift-tax computation. Confirm with the IRS and an estate attorney.