Estate Tax Exemption Rises to $15 Million Per Person in 2026 Under New Tax Law

The estate tax exemption rose to $15 million per person in 2026 under the One Big Beautiful Bill Act, signed into law in July 2025, giving most American families a wider buffer before their estates become subject to federal taxation.

The increase means a married couple can now pass up to $30 million to heirs without triggering the federal estate tax. For the vast majority of American families, the change eliminates the need for complex estate planning strategies that were previously used to minimize tax exposure.

"Most people do not need to worry about the estate tax anymore," said one certified financial planner. "But that does not mean you can ignore your estate plan."

Financial advisors say annual reviews of estate documents remain important even when the tax threshold is not a concern. Beneficiary designations, powers of attorney, and healthcare directives should be updated after major life events such as marriage, divorce, the birth of a child, or the death of a named beneficiary.

The new law also introduced other changes affecting retirement savings and charitable contributions. Higher-income workers aged 50 and older may now be required to make catch-up contributions to Roth-style accounts, which removes the immediate tax deduction but allows for tax-free growth.

A new tax-deferred savings account for minors was also created under the law. Parents can contribute until the child turns 18, and the government will add a $1,000 contribution for newborns.

Charitable giving rules became more complex for high-income taxpayers. New limits on itemized deductions reduce the overall tax benefit of charitable contributions for those in higher income brackets.

Tax professionals say the changes require careful planning, particularly for business owners and those with significant investment portfolios.