Estate taxes are often referred to as death taxes because they’re imposed on the transfer of an estate after a person dies.

Federal Estate Tax in 2026

For 2026, the federal estate tax exemption has increased.

  • The basic estate tax exemption — the amount an individual can leave to heirs free of federal estate tax — is now $15 million per person.

  • Estates with a taxable value above that threshold are subject to federal estate tax on the excess. The federal tax rates range from 18% up to 40% on amounts over the exemption.

If you leave an estate valued at less than $15 million, the estate generally won’t owe any federal estate tax.

Married Couples

Each spouse has their own exemption.

  • A married couple can effectively shield up to $30 million from federal estate tax — $15 million each — assuming they haven’t used their exemptions on lifetime gifts and elect portability of the unused exemption to the surviving spouse.

Unlimited Marital and Charitable Deductions

  • All property left to a surviving spouse is exempt from federal estate tax (marital deduction).

  • Everything left to a qualified charity is also exempt from federal estate tax.

State Estate and Inheritance Taxes

Some states impose their own estate or inheritance taxes with exemption amounts and tax rates that differ from the federal rules. These state-level taxes can apply even when no federal estate tax is due.

State-level estate/inheritance taxes can significantly affect how much heirs actually receive, so it’s important to consider both federal and state rules in estate planning.