Estate & Inheritance Tax Guides
Plain-English explanations to help you use the calculators with confidence. Each figure traces back to federal statute or a state Department of Revenue. For deeper, question-style guides — including how to reduce estate tax, what portability is, and the New York cliff — visit our Learn hub →.
§The 2026 federal exemption is $15M — and now permanent
The federal estate tax exemption is $15M per person in 2026 ($30M for a married couple). The One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) made the higher exemption permanent, ending the scheduled 2026 sunset.
Above the exemption, the top federal rate is 40%, applied through the exact IRS graduated brackets (18% rising to 40%). Two levers matter most: the unlimited marital deduction to a U.S.-citizen spouse (defers tax), and portability (DSUE) — the surviving spouse can elect to use the deceased spouse’s unused exclusion. Our Simulate tool models both.
§The New York estate tax cliff
New York’s estate tax has a notorious “cliff.” The exemption is $7.35M (2026). If your taxable estate exceeds 105% of that — about $7,717,500 — the entire estate becomes taxable, not just the excess. A small miscalculation near the line can cost hundreds of thousands of dollars.
New York also has no portability and adds back taxable gifts made within three years of death. Our State and Reverse tools flag exactly how far you are from the cliff so you can plan around it.
§Estate tax vs. inheritance tax
An estate tax is levied on the estate itself, before distribution. An inheritance tax is levied on what each heir receives, and the rate depends on the heir’s relationship to the deceased — spouses are typically exempt; distant relatives and non-relatives pay the most.
Only a handful of states levy an inheritance tax (Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania), and Maryland levies both. Use the Inheritance tool to see per-heir figures, and the By-State hub to see which states tax what.