Estate Tax Explained: The 2026 Exemption
How the federal estate tax works in 2026, the 15 million dollar per-person exemption made permanent under OBBBA, portability, and who actually owes it.
The 2026 federal estate tax exemption is 15,000,000 dollars per person, or 30,000,000 for a married couple using portability. The One Big Beautiful Bill Act made the increased exemption permanent and indexed it going forward. Fewer than one estate in a thousand owes any federal estate tax.
The 2026 exemption
Each individual can pass 15,000,000 dollars free of federal estate tax in 2026. That figure was made permanent and raised under the One Big Beautiful Bill Act (OBBBA) and is indexed for inflation going forward, with no scheduled sunset.
Portability for married couples
A surviving spouse can claim the unused portion of the deceased spouse's exemption (called DSUE) by timely filing an estate tax return, even when no tax is owed. In practice this shields up to 30,000,000 dollars for a married couple, but it only happens if the return is filed.
The 40 percent top rate
Amounts above the exemption are taxed at a top federal rate of 40 percent. Below the exemption there is no federal estate tax at all.
Who actually owes it
Roughly 0.1 percent of estates owe any federal estate tax under a 15 million dollar exemption. For most families, the meaningful estate planning issues are the step-up in cost basis at death and any state estate or inheritance tax, not the federal estate tax.
Worked example
A widow dies in 2026 with a 20,000,000 dollar estate and DSUE of 15,000,000 dollars from her late husband, filed at his death. Combined exemption is 30,000,000. The taxable estate is zero and no federal estate tax is due.
Ready to run the numbers?
Use the estate tax calculator to get a specific quantity for your project.
Open the estate tax calculator →Related guides
Sources
Last reviewed . Educational estimates only; local conditions and codes take precedence. Consult a qualified professional for site-specific decisions.