Estate & Gift Taxes in 2026
The 2026 federal basic exclusion is $15 million for a U.S. citizen or resident for estate-and-gift-tax purposes. The numbers that matter, portability, and the state-level layer.
Key facts
- For 2026, a U.S. citizen or resident has a $15,000,000 estate-and-gift basic exclusion and a separate GST exemption of the same amount; unused GST exemption is not portable.
- The annual gift exclusion is $19,000 per recipient in 2026; qualifying present-interest gifts within that limit do not use the basic exclusion.
- Some states and the District of Columbia impose separate estate or inheritance taxes, often with lower thresholds than federal law.
The federal numbers
Under Public Law 119-21, enacted July 4, 2025, the federal basic exclusion amount is $15,000,000 for a U.S. citizen or resident for estate-and-gift-tax purposes in 2026, indexed for inflation in later years. The top estate- and gift-tax rate remains 40%. Unlike the 2017 increase, this provision has no scheduled sunset.
Estate and gift taxes share the basic exclusion: taxable lifetime gifts generally reduce the amount available at death. GST tax has a separate exemption of the same 2026 amount, allocated under separate rules.
Transfers outside the basic exclusion
Qualifying present-interest gifts can use the $19,000 annual exclusion per recipient in 2026 ($38,000 with a valid gift-splitting election). Direct tuition payments to an educational organization and direct medical payments to a provider can qualify for separate exclusions. Qualifying transfers to a U.S.-citizen spouse can use the marital deduction.
Portability
A surviving spouse may use a deceased spouse's unused estate-and-gift exclusion only if the executor elects portability on Form 706. Certain estates not otherwise required to file may obtain simplified late-election relief through the fifth anniversary of death; other relief may require a private-letter ruling.
Don't forget the states
Some states and the District of Columbia impose estate or inheritance taxes under their own statutes. Thresholds and rates can be far below the federal figure, so families under the federal threshold may still face state tax. Confirm the current rules in the decedent's domicile and any state where property is located.
References
- IRS — What's New: Estate and Gift Tax (2026 exclusion amounts)
- IRS — Estate Tax
- IRS — Gift Tax
- IRS — About Form 706 (estate tax return; portability election)
- U.S. Code — 26 U.S.C. § 2631 (Separate GST exemption)
- Public Law 119-21 — 2026 basic exclusion amount amendment
- U.S. Code — 26 U.S.C. § 2503 (Annual, tuition, and medical exclusions)
- U.S. Code — 26 U.S.C. § 2523 (Marital deduction for gifts)
- IRS Revenue Procedure 2022-32 — Simplified late portability election
- New York Tax Department — Estate tax
- Pennsylvania Department of Revenue — Inheritance tax
- District of Columbia Office of Tax and Revenue — Estate tax
This guide is educational only and is not legal, tax, or investment advice. Laws vary by state and change over time; confirm current figures with the linked primary sources or a licensed professional in your state.
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