Estate Tax Calculator 2026

The 2026 federal estate tax exemption is $15,000,000 per person, made permanent by the OBBBA (One Big Beautiful Bill Act). Married couples can shield up to $30,000,000 using portability of the deceased spouse's unused exemption (DSUE). The exemption is unified with the lifetime gift tax exemption. Amounts above the exemption are taxed at a flat 40% rate.

You must file IRS Form 706 (United States Estate Tax Return) if the gross estate plus prior taxable gifts exceed the $15M exemption. Even if no tax is owed, filing Form 706 is required to elect portability for a surviving spouse. The return is due 9 months after the date of death, with a 6-month extension available.

Several states impose their own estate taxes with much lower exemptions than the federal level. For example, Massachusetts and Oregon have just a $1M exemption, while New York's is $7.16M. States with estate taxes include: Washington, Oregon, Massachusetts, Connecticut, New York, Illinois, Maryland, Maine, Vermont, Rhode Island, Minnesota, Hawaii, and DC. State rates range from about 10% to 20%. Some states also have inheritance taxes (paid by the recipient).

Portability allows a surviving spouse to use the deceased spouse's unused exemption (DSUE). If the first spouse used $5M of their $15M exemption, the surviving spouse can claim the remaining $10M, giving them a total exemption of $25M. A timely-filed Form 706 is required to elect portability, even if no estate tax is owed. Portability applies only to the federal exemption, not to most state estate tax exemptions.

Yes. The OBBBA permanently set the estate tax exemption at $15,000,000 per person (indexed for inflation in future years). This replaced the previous law under the 2017 TCJA where the doubled exemption was scheduled to sunset back to approximately $5M-$7M after 2025. The step-up in basis for inherited assets is also preserved.