Estate Tax Exemption 2026: Will Your Family Pay?
The “Death Tax” is scary, but for 99% of Americans, it is a non-issue. For 2026, the federal exemption has risen again, allowing families to pass on massive wealth tax-free.
2026 Federal Exemption Limits
The IRS adjusts these limits annually for inflation. This is your “Coupon” against the death tax.
| Filing Status | 2026 Exemption (Est) | Tax Liability |
|---|---|---|
| Single | $14,300,000 | $0 |
| Married (Joint) | $28,600,000 | $0 |
| Excess Value | Anything Over | 40% Rate |
| Estate Value | Tax Status |
|---|---|
| Under $14M | Safe |
| Over $14M | Plan Now |
Warning: The State Tax Trap
Just because you are safe from the IRS does not mean you are safe from your State. 12 States + DC still levy their own Estate Tax with much lower thresholds.
States with Low Exemptions (Examples)
- Massachusetts: Taxes estates over $2 Million.
- Oregon: Taxes estates over $1 Million.
- Washington: Taxes estates over $2.19 Million.
- New York: “Cliff Tax” applies if you exceed the limit by 5%.
Strategy Tip
Giving It Away Early (Gift Tax)
The Estate Tax and Gift Tax are unified. You have a “Lifetime Limit” ($14.3M). Every dollar you give away over the annual limit eats into this lifetime bucket.
The Annual Exclusion (2026)
You can give $19,000 per person, per year to as many people as you want without reporting it.
- Scenario: You give your son $19,000. Result: No tax, no paperwork.
- Scenario: You give your son $100,000. Result: You must file Form 709. The extra $81,000 is deducted from your $14.3M lifetime limit. You still pay $0 tax now.