Estate Tax Exemption 2026
Current year
The 2026 Estate Tax Exemption is $15,000,000.
Effective 2026-01-01Source: Rev. Proc. 2025-32 (IRS)Verified 2026-08-29
Compared with 2025
| Item | 2025 | 2026 | Change |
|---|---|---|---|
| Basic exclusion amount | $13,990,000 | $15,000,000 | +$1,010,000 (+7.2%) |
Who it applies to
The amount is keyed to a calendar year, and the estate that uses it is the estate of a decedent dying in that year. For calendar year 2026 the basic exclusion amount is $15,000,000. Rev. Proc. 2025-32 describes it as a component of the applicable exclusion amount under § 2010, used in determining the applicable credit amount against estate tax under § 2010 and the applicable credit amount against gift tax under § 2505, so it reaches lifetime gifts as well as transfers at death. The generation-skipping transfer exemption under § 2631 is equal to $15,000,000 for calendar year 2026 as well, which matters for transfers to grandchildren and more remote beneficiaries. The revenue procedure states one figure for the year without distinguishing by marital status, and says these amounts are adjusted for inflation for taxable years beginning after December 31, 2026.
What changed this year, and why
The basic exclusion amount goes from $13,990,000 for the prior year to $15,000,000 for calendar year 2026, and this time the increase is statutory rather than an inflation adjustment. Rev. Proc. 2025-32 explains that Section 70106 of the One, Big, Beautiful Bill Act amends § 2010 by increasing the basic exclusion amount to $15,000,000 for calendar year 2026, and that the generation-skipping transfer exemption amount under § 2631 is equal to $15,000,000 for the same calendar year. The revenue procedure adds that the basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years.
Common questions
- What is the estate tax exemption for 2026?
- The basic exclusion amount is $15,000,000 for calendar year 2026. Rev. Proc. 2025-32 states that Section 70106 of the One, Big, Beautiful Bill Act amends § 2010 to increase it to that figure for the calendar year. It is a component of the applicable exclusion amount and is used in determining the applicable credit amount against estate tax under § 2010.
- How did the estate tax exemption change from 2025 to 2026?
- It moved from $13,990,000 for the prior year to $15,000,000 for calendar year 2026. The difference in kind matters as much as the amount: the earlier figure was an annual inflation adjustment, while $15,000,000 was set directly by an amendment to § 2010 made by the One, Big, Beautiful Bill Act, as Rev. Proc. 2025-32 explains in its section on changes.
- Does the $15,000,000 exclusion apply to lifetime gifts as well?
- Rev. Proc. 2025-32 says the basic exclusion amount is a component of the applicable exclusion amount described in § 2010 and is used in determining both the applicable credit amount against estate tax under § 2010 and the applicable credit amount against gift tax described in § 2505. So the same $15,000,000 figure feeds the gift tax credit for calendar year 2026, not only the estate tax credit.
- What is the generation-skipping transfer exemption for 2026?
- For calendar year 2026 the generation-skipping transfer exemption amount under § 2631 is equal to $15,000,000, the same figure as the basic exclusion amount. Rev. Proc. 2025-32 states the two together, so a transfer plan that skips a generation is measured against the same ceiling for that calendar year rather than against a separate, smaller allowance.
- Will the estate tax exemption keep rising after 2026?
- Rev. Proc. 2025-32 says the basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years, and that these amounts are adjusted for inflation for taxable years beginning after December 31, 2026. It does not state the later figures, which are set by the inflation adjustment for each year rather than fixed in advance by this revenue procedure.
- Which year's exemption applies to an estate, the year of death or the year of filing?
- The calendar year is what the figure is stated for. Rev. Proc. 2025-32 sets the basic exclusion amount at $15,000,000 for calendar year 2026 and treats the following year separately, saying the amount will be adjusted for inflation for calendar year 2027 and future years. Preparing the return in a later year does not move the estate onto a different figure.
- Is the $15,000,000 exclusion per person or per couple?
- Rev. Proc. 2025-32 states a single basic exclusion amount for calendar year 2026 without distinguishing by marital status, and describes it as a component of the applicable exclusion amount under § 2010. It does not set a separate couple figure and does not describe how an amount left unused is treated. Those rules sit in the Code rather than in this revenue procedure.
- Where does the 2026 basic exclusion amount come from?
- From the changes section of Rev. Proc. 2025-32, which records that Section 70106 of the One, Big, Beautiful Bill Act amends § 2010 by increasing the basic exclusion amount to $15,000,000 for calendar year 2026. The revenue procedure modifies Rev. Proc. 2024-40 to reflect that Act and states the Code as in effect on October 9, 2025.
Every amount on this page is a published figure rather than yours. The Estate tax exemption headroom takes the number you enter and works it out against them, showing which published figure it used.
What counts toward the exemption
The gross estate includes all property in which the decedent had an interest, including property outside the United States. Beyond direct ownership, the gross estate also captures certain transfers made during the decedent's life without adequate and full consideration, annuities, the includible portion of joint estates with right of survivorship and tenancies by the entirety, certain life insurance proceeds even when payable to beneficiaries other than the estate, digital assets, property over which the decedent held a general power of appointment, dower or curtesy interests of the surviving spouse, and community property to the extent of the decedent's interest under applicable law. These rules mean the gross estate for federal estate tax purposes is typically much larger than the probate estate, and executors must account for all of these categories when determining whether the estate exceeds the basic exclusion amount and whether Form 706 must be filed.
The gross estate includes all property in which the decedent had an interest (including property outside the United States).
Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
The nine-month deadline and the extension
Form 706 must be filed within 9 months after the date of the decedent's death. If the executor cannot meet this deadline, an automatic 6-month extension of time to file is available by submitting Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. The extension request does not require showing cause; it is granted automatically upon timely filing of Form 4768. However, the extension of time to file does not extend the time to pay any estate tax due. Interest accrues on unpaid tax from the original 9-month due date, and a separate extension to pay may be needed if the estate lacks liquid assets. Executors should file Form 4768 well before the 9-month deadline to ensure the extension is in place.
You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent’s death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file.
Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
Carrying an unused exemption to a surviving spouse
The portability election allows an executor to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, effectively allowing the survivor to use both their own basic exclusion amount and the unused portion of the deceased spouse's exclusion. To make this election, the executor must file Form 706 timely - that is, within 9 months of the decedent's date of death or, if an extension was granted, before the 6-month extension period ends. If the estate has no filing requirement under section 6018(a) but wants to elect portability, the return must still be filed within this window. Executors who miss the deadline may be eligible for relief under Revenue Procedure 2022-32, which permits filing Form 706 on or before the fifth anniversary of the decedent's death, provided the return includes a specific statement at the top indicating it is being filed under that procedure to elect portability.
An executor can only elect to transfer the DSUE amount to the surviving spouse if the Form 706 is filed timely, that is, within 9 months of the decedent’s date of death or, if you have received an extension of time to file, before the 6-month extension period ends.
Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2025-32 (IRS)
- Basic exclusion amount
Section 70106 of the OBBBA amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.
By year
Every published year
11 years on record, 2026 back to 2016. Each year links to its own page, its own document and its own verification date.