The 2026 federal estate tax exemption
| 2025 | 2026 | |
|---|---|---|
| Individual exemption | $13.99 million | $15 million |
| Married couple (with portability) | $27.98 million | $30 million |
Source: Internal Revenue Service
For example, an estate worth $18 million, which is only $3 million over the exemption ($18,000,000 - $15,000,000 = $3,000,000), would only pay federal estate tax on that $3 million.
Who actually pays the estate tax
The estate itself pays any tax owed, using its own assets, before what’s left gets distributed to heirs. That means the people who inherit money or property generally don’t pay federal estate tax on it directly. Because the exemption is so high, many estates don’t end up owing any federal estate tax at all.
Estate tax vs. inheritance tax: what’s the difference
Estate tax and inheritance tax may seem similar on the surface, but they work differently. Estate tax is charged against the estate before assets are distributed, based on the total value of everything the deceased person owned. Inheritance tax, where it applies, is charged to the person receiving the assets, based on what they personally inherited.
Unlike estate tax, there is no federal inheritance tax, but a handful of states have their own.
What is portability and how does it help married couples
Portability lets a surviving spouse add any unused exemption from a deceased spouse to their own. If one spouse dies in 2026 having used none of their $15 million exemption, the surviving spouse can claim it in addition to their own $15 million, protecting up to $30 million combined from federal estate tax.
State estate and inheritance taxes can apply at lower thresholds
Even if your estate falls well under the federal exemption, you could still owe state-level tax. Several states impose their own estate or inheritance tax with thresholds far below $15 million, so it’s worth checking your state’s rules separately from the federal exemption.
