Most estates don't owe federal estate or gift tax, because you can give away or leave substantial amounts of property tax-free. The federal estate and gift taxes are really one tax, called the “unified gift and estate tax.” The unified gift and estate tax totals the value of property you give away during life and leave at your death. For deaths in 2026, you can leave or give away up to $15 million ($30 million for married couples) before your estate needs to pay federal taxes. Taxes aren't assessed until death, unless you give away $15 million in taxable gifts (very unusual) during your lifetime.

In July 2025, the federal government increased the federal estate tax exemption to $15 million ($30 million for married couples) beginning in January 2026. This $15 million tax exemption is labeled “permanent,” meaning it isn’t scheduled to be changed (other than annual increases for inflation) or eliminated in the future. (However, a future Congress and president could pass a new law that increases, decreases, or eliminates this exemption.)

The Personal Estate Tax Exemption

The personal exemption allows a set dollar amount of property to pass tax-free, no matter who inherits it. As noted above, the individual exemption for deaths in 2026 is $15 million. After 2026, the exemption amount will rise yearly with inflation.

If your estate is worth less than the gift and estate tax exemption—as are the estates of more than 99.9% of the population—it won't owe federal estate tax when you die. If you have made taxable gifts during your life, the amount of your personal exemption will be reduced by the amount of those taxable gifts. (Some gifts aren’t taxable, and you might be able to reduce your total estate tax with nontaxable gifts.)

The Marital Deduction

All property left to a surviving spouse passes free of estate tax; this is called the marital deduction. The marital deduction isn't allowed for property left to noncitizen spouses, but the personal estate tax exemption can be used for property left to noncitizen spouses. (I.R.C. § 2056 (2026).)

The Charitable Deduction

All property left to a tax-exempt charity is also free of estate tax. (I.R.C. § 2056(a) (2026).)

Special Rules for Married Couples

A surviving spouse gets a big tax break. If the deceased spouse didn't use up the individual tax exemption, the survivor can use what's left. That gives the couple a total exemption of twice the individual exemption amount, which can be split between them in any way that provides the greatest tax benefit. For example, say a man dies and leaves $10 million to his widow; no estate tax is owed because property left to a spouse is tax-free. The widow then dies, leaving $20 million (her own $10 million plus the $10 million she inherited from her husband) to their children. Her estate won't owe any estate tax, even though her estate is over the exemption amount, because her estate can use some of the husband's unused exemption.

State Estate and Inheritance Taxes

Even if your estate isn't big enough to owe federal estate tax, the state might still take a bite. Several states collect either their own estate or inheritance taxes. (See Estate and Gift Tax FAQ.) If you live in one of those states, there's not much you can do to avoid paying those taxes, except move to another state.

Learn about each state's estate and inheritance tax rules.

Getting Help and More Information

If you think your estate will be large enough to trigger federal estate tax, get advice from an experienced estate planning lawyer who can help you sort through your options. There are a few estate planning tools you can use to reduce estate tax liability. (For instance, Tax-Saving AB Trusts.)

For a discussion of how you can plan to avoid estate and gift taxes, including giving gifts and creating an AB or bypass trust, see Nolo's Guide to Estate Planning, by Liza Hanks. For information on paying estate taxes after death, see The Executor's Guide: Settling a Loved One's Estate or Trust, by Jennie Lin and Mary Randolph (Nolo).