Estate Tax Exemption 2026: $15 Million Per Person, With a Federal Calculator
The federal estate tax exemption for 2026 is $15,000,000 per person, set by Public Law 119-21 (the IRS calls it the basic exclusion amount). An estate owes federal estate tax only on value above that amount, after counting lifetime taxable gifts and any unused amount passed from a late spouse. The calculator below estimates the federal tax, and the sections after it list the amount for every year from 2011, the 18% to 40% rate schedule, portability and who must file Form 706.
Maintained by Archie Chang · Reviewed October 30, 2026 · Methodology & sources
Your estate
Basic exclusion amount used: $15,000,000.
Leave blank to let the calculator estimate it. If gift tax was paid on earlier gifts, the estimate can be too high unless you enter this.
The starting numbers are an example, not a recommendation. Replace them with yours.
Your estimated federal estate tax
Estimated federal estate tax
$1,200,000
$3,000,000 is above the exclusion, taxed at 40%. An estimate. The IRS and your executor determine the actual amount.
| Gross estate | $18,000,000 |
|---|---|
| Less deductions | $0 |
| Taxable estate | $18,000,000 |
| Plus adjusted taxable gifts | $0 |
| Tax base | $18,000,000 |
| Tentative tax on the tax base (2001(c)) | $7,145,800 |
| Less gift tax payable on the gifts (estimate) | $0 |
| Applicable exclusion amount ($15,000,000 basic plus $0 DSUE) | $15,000,000 |
| Applicable credit (tentative tax on the exclusion amount) | $5,945,800 |
| Credit used | ($5,945,800) |
| Estimated federal estate tax | $1,200,000 |
Gross estate plus adjusted taxable gifts is above the basic exclusion amount, so a Form 706 filing is expected. Confirm with the Form 706 instructions.
Federal estate tax exemption in 2026
The IRS and the Revenue Procedure that sets the 2026 inflation-adjusted amounts both state the figure:
“The Working Families Tax Cuts Bill (WFTC) was signed into law on July 4, 2025 as Public Law 119-21. WFTC amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.”
“Section 70106 of the OBBBA amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.”
Section 70106(a) of Public Law 119-21 amends 26 U.S.C. 2010(c)(3) in four ways: it replaces the $5,000,000 in subparagraph (A) with $15,000,000, it replaces “after 2011” in subparagraph (B) with “after 2026”, so the first inflation adjustment is for 2027 and the 2026 amount is the fixed $15,000,000, it moves the base year for that adjustment from calendar year 2010 to calendar year 2025, and it strikes subparagraph (C), the temporary $10,000,000 rule that applied from 2018 through 2025. Under the unchanged rounding sentence of subparagraph (B), an adjusted amount is rounded to the nearest multiple of $10,000. The change applies as follows:
“Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025.”
The 2027 amount has not been set. The IRS says the basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years:
“These numbers are adjusted for inflation for taxable years beginning after December 31, 2026. The basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years.”
As of October 30, 2026, the IRS has not published a 2027 basic exclusion amount, so this page shows it as “Not announced yet” and the calculator uses 2026. The IRS publishes each year’s figures in a Revenue Procedure; the one for 2026 is Rev. Proc. 2025-32. The gift tax page tracks the same figure for 2027: see the gift tax exclusion 2027 page, which also covers the separate yearly gift amounts.
What the exemption is
The exemption is a credit, not a deduction. The statute defines the credit as the tentative tax on the exclusion amount, and the exclusion amount as the basic exclusion amount plus, for a surviving spouse, the unused amount of a deceased spouse:
“For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under section 2001(c) if the amount with respect to which such tentative tax is to be computed were equal to the applicable exclusion amount.”
“For purposes of this subsection, the applicable exclusion amount is the sum of— (A) the basic exclusion amount, and (B) in the case of a surviving spouse, the deceased spousal unused exclusion amount.”
For 2026 the tentative tax on $15,000,000 is $5,945,800, so an estate at that value owes $0. The same credit is used against the gift tax during life, so large taxable gifts reduce what is left for the estate (see the next section).
| Taxable estate, no gifts | DSUE added | Estimated federal tax |
|---|---|---|
| $15,000,000 | None | $0 |
| $20,000,000 | None | $2,000,000 (40% of the $5,000,000 above the exemption) |
| $20,000,000 | $5,000,000 | $0 |
Basic exclusion amount by year of death
The IRS lists the basic exclusion amount for each year of death. It is a single amount per person for the year the person dies. 2027 is shown as the gift tax page shows it.
| Year of death | Basic exclusion amount |
|---|---|
| 2027 | Not announced yet |
| 2026 | $15,000,000 |
| 2025 | $13,990,000 |
| 2024 | $13,610,000 |
| 2023 | $12,920,000 |
| 2022 | $12,060,000 |
| 2021 | $11,700,000 |
| 2020 | $11,580,000 |
| 2019 | $11,400,000 |
| 2018 | $11,180,000 |
| 2017 | $5,490,000 |
| 2016 | $5,450,000 |
| 2015 | $5,430,000 |
| 2014 | $5,340,000 |
| 2013 | $5,250,000 |
| 2012 | $5,120,000 |
| 2011 | $5,000,000 |
Source: IRS, What’s new — Estate and gift tax. The IRS Estate tax page prints the same amounts as the filing threshold for each year of death.
How the federal estate tax is figured, and the rates
The IRS describes the order of the steps this way:
“Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your "Taxable Estate." These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities.”
“After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit.”
The statute states the computation, and what counts as an adjusted taxable gift:
“The tax imposed by this section shall be the amount equal to the excess (if any) of— (1) a tentative tax computed under subsection (c) on the sum of— (A) the amount of the taxable estate, and (B) the amount of the adjusted taxable gifts, over (2) the aggregate amount of tax which would have been payable under chapter 12 with respect to gifts made by the decedent after December 31, 1976, if the modifications described in subsection (g) had been applicable at the time of such gifts.”
“For purposes of paragraph (1)(B), the term "adjusted taxable gifts" means the total amount of the taxable gifts (within the meaning of section 2503) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent.”
The tentative tax comes from the 26 U.S.C. 2001(c) rate schedule, which has 12 brackets from 18% to 40%:
| If the amount is over | but not over | The tentative tax is |
|---|---|---|
| $0 | $10,000 | 18% of the amount |
| $10,000 | $20,000 | $1,800 plus 20% of the excess over $10,000 |
| $20,000 | $40,000 | $3,800 plus 22% of the excess over $20,000 |
| $40,000 | $60,000 | $8,200 plus 24% of the excess over $40,000 |
| $60,000 | $80,000 | $13,000 plus 26% of the excess over $60,000 |
| $80,000 | $100,000 | $18,200 plus 28% of the excess over $80,000 |
| $100,000 | $150,000 | $23,800 plus 30% of the excess over $100,000 |
| $150,000 | $250,000 | $38,800 plus 32% of the excess over $150,000 |
| $250,000 | $500,000 | $70,800 plus 34% of the excess over $250,000 |
| $500,000 | $750,000 | $155,800 plus 37% of the excess over $500,000 |
| $750,000 | $1,000,000 | $248,300 plus 39% of the excess over $750,000 |
| $1,000,000 | No limit | $345,800 plus 40% of the excess over $1,000,000 |
Because the exemption is far above $1,000,000, the credit covers every lower bracket, and each dollar of taxable estate above the exemption is taxed at the 40% top rate. The IRS notes that the gift tax payable on earlier gifts is figured with the schedule in effect at death, not with the gift tax actually paid.
Portability and the DSUE amount
A surviving spouse can add the unused part of a deceased spouse’s exclusion to their own. The IRS describes the election this way:
“For purposes of the Federal estate and gift taxes, a portability election allows a decedent’s unused exclusion amount (deceased spousal unused exclusion amount, or DSUE amount) to become available for application to the surviving spouse’s subsequent transfers during life or at death.”
“For purposes of this subsection, with respect to a surviving spouse of a deceased spouse dying after December 31, 2010, the term "deceased spousal unused exclusion amount" means the lesser of— (A) the basic exclusion amount, or (B) the excess of— (i) the applicable exclusion amount of the last such deceased spouse of such surviving spouse, over (ii) the amount with respect to which the tentative tax is determined under section 2001(b)(1) on the estate of such deceased spouse.”
“A deceased spousal unused exclusion amount may not be taken into account by a surviving spouse under paragraph (2) unless the executor of the estate of the deceased spouse files an estate tax return on which such amount is computed and makes an election on such return that such amount may be so taken into account. Such election, once made, shall be irrevocable. No election may be made under this subparagraph if such return is filed after the time prescribed by law (including extensions) for filing such return.”
The IRS explains how and when the election is made, and what happens if the return was not filed in time:
“In order to elect portability of the decedent's unused exclusion amount (deceased spousal unused exclusion (DSUE) amount) for the benefit of the surviving spouse, the estate's representative must file an estate tax return (Form 706) and the return must be filed timely. The due date of the estate tax return is nine months after the decedent's date of death, however, the estate's representative may request an extension of time to file the return for up to six months.”
“If the filing threshold has been met, or in other words, if, independent of the portability election, the estate is required to file an estate tax return based on the total value of the gross estate and the amount of any adjusted taxable gifts, no extension of time to elect portability is available and Revenue Procedure 2022-32 does not apply.”
“However, if, the sum of the value of the decedent’s gross estate and the total amount of the decedent’s adjusted taxable gifts is less than the filing threshold, Revenue Procedure 2022-32 provides a simplified method for certain taxpayers to obtain an extension of time to make a “portability” election under § 2010(c)(5)(A) of the Internal Revenue Code. The simplified method under the revenue procedure to obtain an extension of time to make the portability election requires the filing of a complete and properly prepared estate tax return on or before the fifth annual anniversary of the decedent’s date of death and requires a notation on the estate tax return that the return is “FILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY UNDER § 2010(c)(5)(A).” No user fee is required to use the simplified method under this revenue procedure. Estates that do not qualify for this relief, and do not have a filing requirement based on the filing threshold, may request an extension of time to make the portability election under § 2010(c)(5)(A) by requesting a letter ruling under the provisions of § 301.9100-3. The requirements for requesting a letter ruling are described in Revenue Procedure 2022-1 (or any successor revenue procedure).”
The calculator’s DSUE field takes the amount from the first spouse’s Form 706. The cap on a DSUE amount is the basic exclusion amount in effect in the year of the first spouse’s death, not the current year’s, so the calculator asks for the year the first spouse died and checks the amount against that year’s figure in the table above. The regulation says:
“Subject to paragraphs (c)(2) through (4) of this section, the DSUE amount of a decedent with a surviving spouse is the lesser of the following amounts— (i) The basic exclusion amount in effect in the year of the death of the decedent; or (ii) The excess of— (A) The decedent's applicable exclusion amount; over (B) The sum of the amount of the taxable estate and the amount of the adjusted taxable gifts of the decedent, which together is the amount on which the tentative tax on the decedent's estate is determined under section 2001(b)(1).”
Who must file Form 706
Most relatively simple estates do not need a return. The IRS gives this test:
“A filing is required if the gross estate of the decedent, increased by the decedent’s adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the decedent’s death, as shown in the table below.”
The filing threshold for the year of death is the basic exclusion amount in the table above, $15,000,000 for 2026. The statute, 26 U.S.C. 6018(a), sets the same test: a return is required when the gross estate exceeds the basic exclusion amount, reduced (but not below zero) by adjusted taxable gifts and the pre-1977 specific exemption. A return is also required to elect portability:
“An estate tax return also must be filed if the estate elects to transfer any deceased spousal unused exclusion (DSUE) amount to a surviving spouse, regardless of the size of the gross estate or amount of adjusted taxable gifts. The election to transfer a DSUE amount to a surviving spouse is known as the portability election.”
The return is due nine months after the date of death, and an extension is available (see the portability section). Form 706 also reports the generation-skipping transfer tax, covered next.
Generation-skipping transfer tax exemption
The GST exemption amount is tied to the same basic exclusion amount:
“For purposes of subsection (a), the GST exemption amount for any calendar year shall be equal to the basic exclusion amount under section 2010(c) for such calendar year.”
“For calendar year 2026, the generation-skipping transfer exemption amount under § 2631(c) is equal to $15,000,000.”
The calculator does not figure generation-skipping transfer tax, which is a separate tax on transfers to grandchildren and other skip persons.
State estate and inheritance taxes
Some states charge their own estate tax or inheritance tax. Each one sets its own exemption, rates and rules. Being below $15,000,000 does not by itself settle whether a state tax applies. This page does not list state amounts; check your state’s revenue department. Federal law gives a deduction for state death taxes that were actually paid:
“For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or the District of Columbia, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent).”
The calculator does not include state taxes or that deduction.
Simplifications used by the calculator
- It estimates federal tax only. It does not include state estate and inheritance taxes or the state death tax deduction.
- Deductions are one input. You enter the total of the marital deduction, the charitable deduction, debts and expenses; it does not check whether any of them qualifies.
- Gift tax paid on earlier gifts: unless you enter the gift tax payable from Form 706, line 7, the estimate treats adjusted taxable gifts as if they used the same exclusion amount as the estate, so the gift tax payable on them is the tentative tax on the gifts minus the credit, and never below zero. If gift tax was paid on earlier gifts, Form 706 subtracts the gift tax payable computed with the exclusion of the gift year, so this estimate can be too high by about that amount unless you enter it.
- Gift tax paid within three years of death is added to the gross estate under 26 U.S.C. 2035(b). The calculator does not add it, which makes the estimate too low for an estate with such a gift; include that tax in the gross estate you enter.
- The DSUE amount is whatever you enter, up to the basic exclusion amount for the year the first spouse died. It does not compute DSUE from the first spouse’s return, apply the order in which DSUE and the basic exclusion amount are used for gifts, or apply the rule for a surviving spouse with more than one deceased spouse (26 CFR 20.2010-3(b)): only the last deceased spouse’s DSUE counts, plus the DSUE of earlier spouses that was already applied to the survivor’s taxable gifts.
- It does not model special valuation, alternate valuation, the farm and business reductions, qualified domestic trusts, the pre-1977 gift adjustment or credits for taxes paid to other countries.
- It does not figure generation-skipping transfer tax.
- Amounts are rounded to the cent, and the credit cannot exceed the tax.
Frequently asked questions
What is the estate tax exemption for 2026?
$15,000,000 per person. The IRS calls it the basic exclusion amount, and Public Law 119-21 amended 26 U.S.C. 2010(c)(3) to set it at that figure for 2026, up from $13,990,000 in 2025. A taxable estate plus adjusted taxable gifts at or below the exclusion owes no federal estate tax. Above it, the tax on the excess is figured at 40%, the top rate in the 26 U.S.C. 2001(c) schedule, which starts at 18%. Lifetime taxable gifts count against the same amount, and a surviving spouse can add a deceased spouse’s unused amount through a portability election.
What is the estate tax exemption for 2027?
Not announced yet. The IRS has not published a 2027 basic exclusion amount as of October 30, 2026. Rev. Proc. 2025-32 says the basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years, and Public Law 119-21 uses 2025 as the base year, so the 2027 figure will come from an IRS revenue procedure, not from this page. This calculator uses 2026. The gift tax page tracks the same 2027 figure: see the gift tax exclusion 2027 page for that figure.
What was the estate tax exemption in earlier years?
The basic exclusion amount was $5,000,000 in 2011 and $5,490,000 in 2017. It rose to $11,180,000 in 2018, then $12,920,000 in 2023, $13,610,000 in 2024 and $13,990,000 in 2025. The table above lists every year from 2011 to 2026 from the IRS.
What is the federal estate tax rate?
The 26 U.S.C. 2001(c) schedule runs from 18% on the first $10,000 to 40% on amounts over $1,000,000, with 12 brackets in all. Because the exclusion is far above $1,000,000, the credit covers the lower brackets and the tax on the amount above the exclusion is figured at 40%.
What is portability and how do I elect it?
Portability lets a surviving spouse use the deceased spouse’s unused exclusion, called the DSUE amount. The executor must file Form 706 for the first spouse to die and make the election on that return, and the election is irrevocable once made. The return is due nine months after the date of death, and an extension of up to six months is available by filing Form 4768 on or before the nine-month due date. If no return was filed in time and the estate was below the filing threshold, Rev. Proc. 2022-32 allows a late election if the decedent was a U.S. citizen or resident, was survived by a spouse and died after 2010, and the executor files a complete Form 706 by the fifth annual anniversary of the date of death with the notation FILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY UNDER § 2010(c)(5)(A) at the top. That relief is void if the estate is later found to have been required to file. After five years, or if the conditions are not met, a letter ruling under § 301.9100-3 may still be requested.
Do I have to file Form 706 if the estate is below the exemption?
Generally not. A return is required when the gross estate plus adjusted taxable gifts is above the filing threshold, which equals the basic exclusion amount for the year of death ($15,000,000 for 2026). An estate that wants to elect portability must file Form 706 even when it is far below the threshold.
Do states have their own estate or inheritance tax?
Some do. Each state that taxes estates or inheritances sets its own exemption, rates and rules, and these differ from the federal exemption. Federal law lets the estate deduct state death taxes it actually paid (26 U.S.C. 2058). This page does not list state amounts. Check your state revenue department, because a state tax can apply to an estate far below the federal exemption.
Related tools
If you inherit a retirement account, the inherited IRA RMD calculator shows the required distributions, and the RMD calculator covers your own accounts. For income tax, see the 2026 and 2027 federal tax brackets. The annual gift limits, which are a separate rule from the estate exemption, are on the gift tax exclusion 2027 page.
Sources
Checked October 30, 2026. Statute links go to govinfo.gov, with a Cornell Legal Information Institute copy.
The govinfo 2024 edition of 26 U.S.C. 2010 predates Pub. L. 119-21 and still shows $5,000,000 and subparagraph (C); see section 70106 above for the amendment.
- IRS: Estate tax
- IRS: What’s new, estate and gift tax
- IRS: Frequently asked questions on estate taxes
- IRS: Rev. Proc. 2025-32 (2026 inflation adjustments)
- IRS: Rev. Proc. 2022-32 (late portability election)
- Public Law 119-21, section 70106 (govinfo.gov) (copy)
- 26 U.S.C. 2001: imposition and rate of tax (copy)
- 26 U.S.C. 2010: unified credit against estate tax (copy)
- 26 U.S.C. 2035: adjustments for certain gifts made within 3 years of decedent’s death (copy)
- eCFR: 26 CFR 20.2010-2, portability provisions applicable to the estate of a decedent survived by a spouse
- eCFR: 26 CFR 20.2010-3, portability provisions applicable to the surviving spouse’s estate
- 26 U.S.C. 2058: state death taxes (copy)
- 26 U.S.C. 2631: GST exemption (copy)
- 26 U.S.C. 6018: estate tax returns (copy)
22 quotations on this page are word for word from these sources.