2025 Estate Tax Exemption
The 2025 Estate Tax Exemption is $13,990,000.
Effective 2025-01-01Source: Rev. Proc. 2024-40 (IRS)Verified 2026-09-01
Compared with 2024
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Basic exclusion amount | $13,610,000 | $13,990,000 | +$380,000 (+2.8%) |
Who it applies to
The amount applies to the estate of a decedent, and the year that matters is the calendar year of death. Rev. Proc. 2024-40 states $13,990,000 as the basic exclusion amount for an estate of any decedent dying in calendar year 2025, and its effective date section confirms the calendar year basis by listing the unified credit against estate tax among the items it applies to transactions or events occurring in calendar year 2025. The revenue procedure sets one figure for any such decedent; it does not state a separate amount by marital status, and it does not describe how an unused amount is treated. The basic exclusion amount is an input rather than the tax result: § 2010 uses it to determine the unified credit against estate tax. Other transfer tax items, including the annual exclusion for gifts under § 2503 and the special use valuation limit under § 2032A, are listed separately with their own amounts.
What changed this year, and why
Rev. Proc. 2024-40 sets the basic exclusion amount at $13,990,000 for an estate of any decedent dying in calendar year 2025. The figure is used to determine the amount of the unified credit against estate tax under § 2010. It is an inflation-adjusted item, generally determined by reference to § 1(f), stated for the Code as in effect on October 22, 2024. Unlike most items in the revenue procedure, this one is tied to a calendar year rather than to a taxable year: the effective date section lists the unified credit against estate tax among the items governed by its calendar year rule.
Common questions
- What is the estate tax exemption for 2025?
- The basic exclusion amount is $13,990,000 for an estate of any decedent dying in calendar year 2025. Rev. Proc. 2024-40 states it as the figure used for determining the amount of the unified credit against estate tax under § 2010. It is an inflation-adjusted item, so it is set for the year rather than fixed, and it is stated once for any decedent dying in that calendar year.
- Which year's estate tax exemption applies, the year of death or the year of filing?
- The year of death. Rev. Proc. 2024-40 states $13,990,000 for an estate of any decedent dying in calendar year 2025, and its effective date section lists the unified credit against estate tax among the items governed by a calendar year rule rather than by the taxable year rule that covers most of the revenue procedure. When the estate return is prepared does not change which figure applies.
- What is the difference between the basic exclusion amount and the unified credit?
- They are two steps of the same calculation. Rev. Proc. 2024-40 states the basic exclusion amount, $13,990,000 for a decedent dying in calendar year 2025, as the figure used for determining the amount of the unified credit against estate tax under § 2010. The exclusion amount is the input the Code converts into a credit; the credit is what is actually applied against the tax.
- Is the $13,990,000 exclusion per person or per couple?
- Rev. Proc. 2024-40 states it for an estate of any decedent, so it is set per decedent's estate rather than per couple. The revenue procedure does not state a separate amount by marital status and does not describe how any part of the amount left unused by one decedent's estate is treated. Those rules sit in the Code rather than in the annual inflation adjustment.
- Does the estate tax exemption also cover lifetime gifts?
- The revenue procedure does not say so. It states $13,990,000 as the basic exclusion amount for determining the unified credit against estate tax under § 2010, and separately lists the annual exclusion for gifts under § 2503 as its own inflation-adjusted item with its own amount. Read on its own, this item speaks only to the estate tax credit, not to a lifetime gifting allowance.
- Do estates below $13,990,000 owe federal estate tax?
- The revenue procedure does not answer that directly; it fixes the basic exclusion amount that § 2010 uses to determine the unified credit against estate tax for a decedent dying in calendar year 2025. What it does establish is that $13,990,000 is the input the credit is built from for that year, and that other items, such as the special use valuation limit under § 2032A, are computed separately.
- Was the 2025 estate tax exemption an inflation adjustment?
- Yes. Rev. Proc. 2024-40 sets out inflation-adjusted items for 2025 for various Code provisions, and states that those items are generally determined by reference to § 1(f). The basic exclusion amount of $13,990,000 is one of them. The revenue procedure also cautions that if amendments to the Code are enacted for 2025 after October 22, 2024, additional guidance may be needed.
- Where does the 2025 basic exclusion amount come from?
- From section 2.41 of Rev. Proc. 2024-40, headed unified credit against estate tax. That revenue procedure states inflation-adjusted items for 2025 for the Code as in effect on October 22, 2024. The same document also lists section 2.41 in its calendar year rule, which is why the figure is expressed for a decedent dying in calendar year 2025 rather than for a taxable year.
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.
Which estates have to file at all
For decedents who died in 2025, the executor of the estate of a U.S. citizen or resident must file IRS Form 706 if the gross estate, plus adjusted taxable gifts and specific exemption, is more than $13,990,000. This dollar amount is the basic exclusion amount for the year. Even when the estate is smaller than this threshold, filing is still required if the executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent's gross estate. This portability election allows the surviving spouse to use the deceased spouse's remaining exclusion for future gifts or at death. To decide whether the estate meets the filing requirement, the executor adds the gross estate value to any adjusted taxable gifts made during the decedent's lifetime and the specific exemption amount. If that combined total surpasses $13,990,000, the estate must file. Estates below the threshold that do not elect portability generally do not need to file.
Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $13,990,000; or 2. Whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent’s gross estate.
Instructions for Form 706 (Rev. September 2025), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
What counts toward the exemption
The gross estate includes all property in which the decedent had an interest, including property located outside the United States. Beyond outright ownership, the gross estate also captures certain transfers the decedent made during life without receiving adequate consideration, annuities, the includible portion of joint estates with right of survivorship and tenancies by the entirety, certain life insurance proceeds payable to beneficiaries other than the estate, digital assets, property subject to a general power of appointment held by the decedent, the dower or curtesy interest of the surviving spouse, and community property to the extent of the decedent's interest under applicable law. The value of everything included determines whether the estate exceeds the $13,990,000 filing threshold and how much tax, if any, is owed after applying the basic exclusion amount.
The gross estate includes all property in which the decedent had an interest (including property outside the United States). It also includes:
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 to report estate and generation-skipping transfer tax within 9 months after the date of the decedent's death. This is the standard deadline for all estates required to file. If the executor is unable to meet this deadline, an extension of time to file may be available. The executor can use Form 4768 to apply for an automatic 6-month extension of time to file. This means the filing deadline can be extended by up to 6 months beyond the original 9-month period. The extension application must be submitted by the original due date of the return. It is important to note that receiving an extension of time to file does not automatically grant an extension of time to pay any tax due; that requires a separate request on the same form.
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
An executor can only elect to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse if Form 706 is filed timely. Timely filing means within 9 months of the decedent's date of death, or before the 6-month extension period ends if an extension of time to file was granted. If the executor intends to elect portability, filing a complete Form 706 on time is all that is required. The executor must complete Section C of Part VI to figure the DSUE amount that will be transferred to the surviving spouse. If any assets are being transferred to a qualified domestic trust, Section B must also be completed. If the executor does not wish to elect portability, the opt-out box in Section A can be checked and Sections B and C need not be completed. Executors who were not required to file but failed to make the election may be eligible for relief under Rev. Proc. 2022-32.
Portability election. 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. 2024-40 (IRS)
- Basic exclusion amount
the basic exclusion amount is $13,990,000 for determining the amount of the unified credit against estate tax under § 2010.