For a U.S. citizen or resident who dies in 2026, the federal estate-tax basic exclusion is $15 million. That figure does not settle every filing question: the federal filing test includes certain prior gifts, an executor may file to elect portability, and some states impose estate or inheritance taxes at much lower thresholds. The rules depend on the date of death, the decedent’s status and connections to particular states, and the assets involved.
How the federal estate-tax rules work in 2026
The estate tax is generally imposed on the transfer from the deceased person’s estate, not simply on what an individual beneficiary receives. The IRS says, “The executor of a decedent’s estate uses Form 706 to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code.” The $15 million basic exclusion amount applies to U.S. citizens and residents who die in 2026; it is a year-specific figure, so check the applicable amount for a death in another year.
The exclusion is not the same thing as a flat tax-free amount for every person or a guarantee that no return is due. The IRS’s general Form 706 filing test takes into account the gross estate, adjusted taxable gifts, and the specific gift-tax exemption. The return is generally required when the total specified by the IRS test is more than the exclusion for the year of death. A filing requirement and a tax bill are separate questions: the return calculates tax using the applicable rules, deductions, and credits.
The IRS instructions describe a unified rate schedule with a maximum marginal rate of 40% on amounts over $1 million in that schedule. That is the top marginal rate in the schedule, not a claim that every estate—or every dollar in an estate— is taxed at 40%.
Do I have to file an estate tax return?
For a U.S. citizen or resident, begin with the Form 706 test for the year of death, including the gross estate, adjusted taxable gifts, and specific exemption. Even when an estate is below the ordinary filing threshold, an executor may file Form 706 to elect portability. A filing can therefore be useful or required for an election even where the estate’s size alone would not trigger a return.
Portability and a surviving spouse
Portability allows a surviving spouse, if the requirements are met, to use a deceased spouse’s unused exclusion (DSUE). It is not automatic: the executor makes the election by filing Form 706. The applicable exclusion for a surviving spouse may include DSUE when available, so records of the prior spouse’s estate and any portability filing can matter.
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Gifts and the annual exclusion
The federal annual gift-tax exclusion is $19,000 per donee for 2025 and 2026, according to IRS guidance. This annual exclusion applies to qualifying gifts; it does not replace the broader lifetime gift and estate tax computation. The Form 706 calculation accounts for adjusted taxable gifts, so an executor should not decide whether a return is needed by looking only at the value of assets held at death.
State estate and inheritance taxes need a separate check
Federal and state rules are separate. A federal estate below $15 million can still have state filing or tax obligations. State estate taxes generally apply to an estate or transfer at death; inheritance-tax rules may instead depend on the beneficiary and the state. Residence, property location, and the date of death can all affect which state rules apply. The IRS allows a deduction for qualifying state death taxes paid, but that federal treatment does not eliminate state filing requirements.
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These official 2026 examples show why the federal figure cannot be used as a state-tax cutoff. They are examples, not a complete list of state rules.
| Jurisdiction | 2026 figure and date qualification | What the figure indicates |
|---|---|---|
| Federal, U.S. citizens and residents | $15,000,000 basic exclusion amount for a decedent dying in 2026 (IRS) | Year-specific exclusion; the general Form 706 filing test also accounts for adjusted taxable gifts and specific exemption. |
| Rhode Island | $1,838,056 for decedents dying on or after January 1, 2026 (Rhode Island Division of Taxation) | Estates above this gross-estate threshold are in the taxable-threshold range. |
| Connecticut | $15,000,000 exemption for decedents dying during 2026 (Connecticut Department of Revenue Services) | State exemption for the 2026 death year. |
| Washington | $3,076,000 for deaths January 1 through June 30, 2026; $3,000,000 for deaths on or after July 1, 2026 (Washington State Department of Revenue) | Exclusion changes based on the date of death within 2026. |
A Tax Foundation compilation provides a broader state-by-state overview, but it is a starting point rather than a substitute for current state guidance. Thresholds can be indexed or changed, and state filing requirements and tax calculations may not match a headline exemption figure. Check the relevant state revenue department’s current instructions for the decedent’s death date and circumstances.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Different federal rule for nonresident noncitizens
Nonresident noncitizens are subject to a separate federal regime; do not apply the $15 million exclusion for U.S. citizens and residents to this situation. The IRS directs these estates to Form 706-NA. Filing may be required when the date-of-death value of U.S.-situated assets, together with the gift-tax specific exemption and adjusted taxable gifts, exceeds $60,000. Because both asset location and status matter, international estates warrant careful review of the IRS instructions and relevant professional advice.
Quick Recap
A practical way to check filing obligations
- Fix the facts first. Record the date of death, citizenship and residency status, state of residence, and any property or other relevant connections in additional states.
- Assemble the transfer information. Estimate the gross estate, identify adjusted taxable gifts and the specific exemption, and gather any records showing a deceased spouse’s unused exclusion or prior portability election.
- Use the right federal instructions. Check the current IRS instructions for Form 706 for U.S. citizens and residents, or Form 706-NA for nonresident noncitizens. The IRS Form 706 materials include schedules for reporting assets such as real estate, stocks and bonds, and other property.
- Check every relevant state. Consult the current revenue department guidance for the state of residence and any state connected to the property or estate. Do not infer state compliance from the federal threshold.
- Separate filing from tax due. Determine whether a return is required to report tax or to make an election, such as portability; then calculate any tax under the applicable federal and state rules.
- Get help when facts are difficult. A qualified estate-tax attorney or tax professional can help when values are near a threshold, assets are hard to value, property crosses state lines, or international facts apply.
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