Estate Tax Exemption Now $15 Million Per Person in 2026, Giving Families More Time to Plan

The federal estate tax exemption rose to $15 million per person on January 1, 2026, under the One Big Beautiful Bill Act signed into law in July 2025. Married couples can now shield up to $30 million from federal estate taxes.

The law also removed the sunset provision from the 2017 Tax Cuts and Jobs Act, which would have cut the exemption roughly in half at the end of 2025. That change gives families more certainty for long-term planning without a looming deadline.

The IRS confirmed the $15 million basic exclusion amount for 2026, up from $13.99 million in 2025. The exemption will be adjusted for inflation each year going forward.

For most families, the higher exemption means federal estate taxes are no longer a concern. Unmarried individuals with a net worth under $15 million and married couples with a net worth under $30 million are significantly less likely to owe federal estate tax.

Families with estates above those thresholds still need advanced planning. Strategies like grantor-retained annuity trusts, irrevocable life insurance trusts, and charitable giving remain relevant for high-net-worth households.

The top marginal estate tax rate stays at 40 percent. The step-up in basis at death also remains intact, meaning heirs receive assets valued at fair market value at the time of death rather than the original purchase price.

Financial advisors say the permanence of the higher exemption removes the urgency that drove many families to make large gifts before the end of 2025. But they caution that waiting too long to gift assets can still result in more wealth being subject to estate taxes if asset values grow faster than inflation adjustments to the exemption.