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Seven guides, written by Priya Raman and checked against IRS and state sources. Start wherever your question actually is.

What is the estate tax exemption?

In 2026 the federal exemption is $15 million per person, $30 million for a married couple using portability. Estates below it owe nothing federally. State exemptions are a different story.

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How the federal estate tax works

The federal rate tops out at 40% on the amount above the exemption. Fewer than 1 in 500 estates ever pay it. When an estate does cross the line, the math is worth understanding.

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Estate tax vs inheritance tax

Estate tax is paid by the estate before anything is distributed. Inheritance tax is owed by the heirs after they receive assets. Six states levy an inheritance tax. They are not the same thing.

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States with estate or inheritance tax

Twelve states and DC impose an estate tax; six states impose an inheritance tax. Several apply both. Here are the states, their exemptions, and top rates for 2026.

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How to reduce estate taxes

Systematic gifting, irrevocable trusts, and charitable vehicles can all reduce a taxable estate before death. Here are the most common strategies and what each one actually involves.

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Step-up in basis explained

A step-up in basis resets the cost basis of an inherited asset to its fair market value at the date of death. That reset can erase capital gains that built up over an entire lifetime of ownership.

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2026 Estate Tax by State Reference

The named dataset behind this site: exemptions and top rates for all 12 states plus DC, sourced, dated, and downloadable as a CSV.

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