Finance
Inheritance & Estate Tax Quick-Check (2026)
Quick estimate of federal estate tax exposure for 2026.
Critical 2026 change: TCJA exemption sunset
⚠️ The estate tax exemption dropped from $13.61M (2024) to approximately $7M in 2026 due to TCJA expiration. Families with estates of $7–14M who previously had no estate tax exposure may now owe significant amounts.
State estate taxes
12 states plus DC impose their own estate tax, often with lower exemptions ($1–4M). Massachusetts and Oregon tax estates above $2M. Add state liability on top of this federal estimate.
⚡ CalcWolf Insight
The TCJA estate tax provision sunset on January 1, 2026 is one of the most significant estate planning events in decades. Families with estates of $7–13M should consult an estate attorney immediately regarding gifting strategies.
Frequently asked questions
What is the inheritance tax exemption in 2026?▾
Federal estate tax exemption in 2026 is approximately $7M per individual ($14M for married couples with portability). This is a significant reduction from the $13.6M 2024 exemption due to TCJA expiration.
What is the difference between estate tax and inheritance tax?▾
Estate tax is paid by the estate (the deceased person's assets) before distribution. Inheritance tax is paid by the person receiving the inheritance. The federal government only levies estate tax (exempt up to $13.61M in 2024). Only 6 states have inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
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