What is the federal estate tax rate?

The federal estate tax uses a graduated schedule under IRC §2001(c), with a top rate of 40% that applies to virtually all taxable estates today because the graduated portion below $1M is fully absorbed by the applicable credit tied to the exemption.

How does portability work between spouses?

Portability lets a surviving spouse use their deceased spouse's unused exemption (DSUE). The executor elects it by filing Form 706 within 9 months of death (a 6-month extension is available), even if no estate tax is owed. Estates NOT otherwise required to file can use the simplified late election under Rev. Proc. 2022-32 for up to 5 years after death. Portability effectively doubles the couple's combined exemption to $30M for 2026 deaths.

Which states have an estate or inheritance tax in 2026?

12 states plus DC impose an estate tax (CT, DC, HI, IL, ME, MD, MA, MN, NY, OR, RI, VT, WA) and 5 states impose an inheritance tax (IA has phased its out, so as of 2026: KY, MD, NE, NJ, PA). Maryland is the only state with both. Thresholds range from $1M (Oregon) to $15M (Connecticut).

What's the difference between estate tax and inheritance tax?

Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the person receiving assets, and rates typically depend on the heir's relationship to the deceased (spouses and lineal descendants often pay 0%).

Estate Tax Calculator

Updated August 24, 2026Reviewed for 2025 & 2026 tax years

Estimate your 2026 federal estate tax with the new $15.00M exemption

IRS-Sourced

Tax Year

Inflation-adjusted

OBBBA raised the exemption to $15,000,000 for 2026 deaths.

What is the federal estate tax exemption for 2026?

For 2026, the federal estate and gift tax exemption is $15,000,000 per person, permanently increased by the One Big Beautiful Bill Act. Married couples using portability can shelter up to $30,000,000. Any taxable estate above the exemption is taxed at 40%.

2026 exemption: $15,000,000 per person (up from $13,990,000 in 2025)
Married with portability: up to $30,000,000 combined
Top federal rate: 40% (IRC §2001(c))
Annual gift exclusion for 2026: $19,000 per recipient (Rev. Proc. 2025-32)
12 states + DC also impose an estate tax; 5 states impose an inheritance tax

Source:IRS — What's new: Estate and gift tax

For 99.5% of Americans, federal estate tax is theoretical — the $15M exemption is so high that fewer than 0.1% of estates owe any federal tax. What actually catches families off guard is state estate tax.

Real-world scenario

Middle-class Oregon estate: $2.5M home + $500K retirement

Zero federal estate tax (nowhere near $15M). But Oregon's estate tax exemption is $1M — so ~$2M is taxable at up to 16%, roughly $200,000+ owed to the state. The family's estate planner in Portland treats state estate tax as the primary risk, not the federal one.

The part most people miss

Portability is not automatic. The first spouse's executor must file Form 706 — normally due 9 months after death, extendable 6 more — even when no tax is due, to lock in the DSUE. Estates not otherwise required to file get a second chance: the Rev. Proc. 2022-32 simplified late election, up to 5 years after death. Miss both windows and the couple loses up to $15M of exemption forever.

Estate Details

Gross Estate Value

Debts, Funeral & Administration Expenses

Marital Deduction (to surviving spouse)

Charitable Deduction

Prior Taxable Gifts (post-1976)

Gift Tax Paid on Those Gifts

Portability (Married Filers)

Apply DSUE from a predeceased spouse
Requires a Form 706 election (9 months + extension; late relief up to 5 years for non-filing estates).

State of Residence at Death

Select state

38 states impose no estate or inheritance tax at the state level.

2026 Estate Tax Estimate

Adjusted Gross Estate$19,500,000

+ Prior Taxable Gifts$0

Total Taxable Transfers$19,500,000

− Applicable Exemption$15,000,000

Federal Taxable Estate$4,500,000

Federal Estate Tax (40%)

$1,800,000

Total Estimated Estate Tax

$1,800,000

Effective rate on adjusted gross estate: 9.2%

Estimated Net to Heirs

$17,700,000

Exemption Status

Exemption Used$15,000,000

Exemption Remaining$0

Educational tool only — not legal, tax, or estate-planning advice. Federal tax calculation applies the 40% top rate above the applicable exemption, less any gift tax paid on prior gifts, matching the effective outcome for virtually all taxable estates. State overlay is simplified — see each state's Department of Revenue and Form 706 or state-equivalent instructions. Complex situations (GRATs, ILITs, QDOTs, generation-skipping transfers, foreign assets, business valuation discounts) require a licensed estate attorney and CPA.

Sources & References

Primary references used for this content

IRS

What's new — Estate and gift tax (OBBBA §2010(c)(3))

$15,000,000 basic exclusion for 2026

View on irs.gov

Rev. Proc. 2025-32

2026 inflation adjustments — annual gift exclusion $19,000

Official 2026 estate & gift tax adjustments

View on irs.gov

Form 706

United States Estate (and Generation-Skipping Transfer) Tax Return

Federal estate tax return

View on irs.gov

IRC §2001(c)

Rate schedule for estate tax (40% top rate)

Statutory federal estate tax schedule

View on law.cornell.edu

Publication 559

Survivors, Executors, and Administrators

Estate settlement and reporting

View on irs.gov

✓5 primary sources; links re-checked on a weekly rotation by the source watcher

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Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.