{"slug":"estate-tax-rates","title":"What Is the Current Estate Tax Rate? 2026 US Rates and Exemption","question":"What is the current estate tax rate in the United States?","metaDescription":"Understand the 2026 federal estate tax rate, $15 million basic exclusion, a worked example and how state estate and inheritance taxes differ.","summary":"The top US federal estate tax rate is 40%. For a US citizen or domiciled resident dying in 2026, the basic estate-and-gift exclusion is $15 million. State taxes are a separate calculation.","quickAnswer":"The federal rate schedule runs from 18% to 40%, but the available estate-and-gift tax credit means most estates owe no federal estate tax. With a fully available 2026 exclusion, no prior taxable gifts and no other adjustments, the federal baseline is 40% of the taxable estate above $15 million.","keyPoints":["A 40% top rate does not mean 40% of every estate is taxed.","The year of death determines which basic exclusion applies.","State estate or inheritance tax can be due when federal tax is zero."],"sections":[{"id":"rates-and-exclusion","heading":"Federal estate tax rates and the 2026 exclusion","paragraphs":["Federal estate tax uses a graduated rate schedule and a credit, rather than simply charging one percentage on all assets. The schedule reaches its 40% top bracket above $1 million of taxable transfers. The separate credit shelters the available exclusion.","The $15 million figure is the 2026 basic exclusion for citizens and domiciled residents. Prior taxable gifts can use part of it. Deductions and a valid transfer of a deceased spouse unused exclusion may change the calculation."],"table":{"headers":["2026 federal rule","Starting point"],"rows":[["Basic estate-and-gift exclusion","$15,000,000 before gifts and other adjustments"],["Statutory marginal rates","18% to 40%"],["Top marginal rate","40%"],["Extra exclusion per child or dependant","None merely because there are more beneficiaries"]]}},{"id":"worked-example","heading":"Example: federal tax on a $16 million estate","paragraphs":["Assume the taxable estate before applying the exclusion is $16 million. The deceased was a US citizen or domiciled resident, made no prior taxable gifts, has the full $15 million exclusion available and has no state-tax deduction or additional adjustments.","$16,000,000 minus $15,000,000 leaves $1,000,000 exposed in this baseline. At 40%, the estimated federal estate tax is $400,000, leaving $15,600,000 after that tax alone.","This is not a combined federal-and-state calculation. A state bill, debts, administration expenses or an alternative asset allocation can change what beneficiaries ultimately receive."]},{"id":"state-rates","heading":"Why there is no single combined US estate tax rate","paragraphs":["A federal calculation does not establish whether a state tax is due. States can use different thresholds, graduated bands, credits and beneficiary exemptions. An inheritance tax may also depend on the relationship between the heir and the deceased.","Use the state guide to find the relevant jurisdiction, then read the coverage note on its calculator. A page labelled federal-only excludes the state bill; it must not be read as confirming that the state charges no tax."]},{"id":"filing-and-residency","heading":"When the simple federal baseline is not enough","paragraphs":["Filing obligations depend on the gross estate together with adjusted taxable gifts and other relevant amounts. An estate can also file to elect portability even when it owes no federal estate tax.","Nonresident noncitizens need different US-situs, filing and treaty checks. The citizen/domiciled-resident exclusion should not be applied to them solely because an asset or beneficiary is in the US."]}],"actionPlan":["Confirm the year of death and the deceased person citizenship or estate-tax domicile.","Account for prior gifts, deductions and any valid portability election.","Check the state tax separately and inspect the calculator coverage notes."],"faqs":[{"question":"Is the federal estate tax always 40%?","answer":"No. The statutory schedule is graduated, and the available credit can eliminate the federal bill. The 40% rate is a useful baseline for the excess above a fully available exclusion in a simple taxable estate."},{"question":"Is the 2026 exclusion $15 million per heir?","answer":"No. It relates to the deceased person estate and lifetime taxable gifts. Splitting the estate among more beneficiaries does not multiply the federal basic exclusion."},{"question":"Does a zero federal bill mean there is no tax to pay?","answer":"No. State taxes, final-return income tax, tax on inherited income and administration costs can still matter."}],"internalLinks":[{"href":"/country/united-states","label":"Free US estate tax calculator","description":"Illustrate federal exposure and select a state."},{"href":"/which-states-have-inheritance-tax","label":"State estate and inheritance taxes","description":"Find which states levy each type of tax."},{"href":"/inheritance-tax-vs-estate-tax","label":"Inheritance tax versus estate tax","description":"Compare estate-level and beneficiary-level taxation."}],"sources":[{"label":"IRS: estate tax and annual filing thresholds","url":"https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax"},{"label":"IRS Form 706 instructions: rate schedule and credits","url":"https://www.irs.gov/instructions/i706"},{"label":"IRS: nonresident noncitizen estate tax questions","url":"https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes-for-nonresidents-not-citizens-of-the-united-states"}],"url":"https://die.tax/estate-tax-rates","dateModified":"2026-10-25"}