The 2026 federal basic exclusion is $15,000,000 per decedent. Marriage alone does not double it: enter only documented elected DSUE. The federal ledger applies the graduated tentative tax, prior taxable gifts, entered gift tax payable, unified credit and modeled state death-tax deduction. It is not a complete Form 706.
How the Federal Estate Tax Works
The 2026 federal basic exclusion is $15,000,000 per decedent. Marriage alone does not double it: enter only documented elected DSUE. The federal ledger applies the graduated tentative tax, prior taxable gifts, entered gift tax payable, unified credit and modeled state death-tax deduction. It is not a complete Form 706.
Form 706 is normally due nine months after death. A timely Form 4768 gives an automatic six-month filing extension, making the ordinary extended deadline 15 months after death. The filing extension does not automatically extend payment. Even if no tax is due, the executor may file to elect portability. Eligible estates with no independent filing requirement may qualify for late election through the fifth anniversary under Rev. Proc. 2022-32. This relief does not extend the payment deadline.
To use the simplified late-election procedure, the decedent must have been a U.S. citizen or resident at death, must have died after December 31, 2010, and must have been survived by a spouse. The estate must have had no independent filing requirement under section 6018(a) and no timely Form 706. An authorized executor must file a complete, properly prepared Form 706 with the required notation by the fifth anniversary of death.
State Estate and Inheritance Taxes
2026 state models: Washington uses the date of death, with $3,076,000 exclusion through June 30 and $3,000,000 from July 1, and different graduated schedules. Maine uses $7,160,000 with 8%/10%/12% bands. Connecticut uses $15,000,000 and 12%, subject to a $15,000,000 combined-tax cap. New York uses the 2026 $7,350,000 exclusion and statutory credit phaseout ending at $7,717,500. Its credit ratio is unrounded; only final tax is rounded to whole USD, without reproducing return-worksheet intermediate rounding. Prior state gifts, add-backs and apportionment are not fully modeled; other states remain directional.
Estate tax is charged to the estate; inheritance tax can be charged to beneficiaries. This calculator does not model inheritance tax. Iowa imposes no inheritance tax for deaths on or after January 1, 2025; consult the applicable beneficiary jurisdiction.
Key Planning Strategies
The most effective estate tax planning combines several approaches layered over time. The annual exclusion gift ($19,000 per recipient in 2026) is the simplest: each year you can reduce your taxable estate by making gifts to family members when the recipient has an immediate right to use the gift and the annual-exclusion rules are met. The calculator assumes eligibility; it does not determine gift-tax exclusions. A couple with four adult children and eight grandchildren could transfer $456,000 per year using annual exclusion gifts, subject to the rules for gift splitting and eligible recipients.
Trusts require separate legal review. An Irrevocable Life Insurance Trust (ILIT) does not automatically exclude insurance: retained rights and certain recent policy transfers can cause estate inclusion. A Grantor Retained Annuity Trust (GRAT), Charitable Remainder Trust (CRT) or Spousal Lifetime Access Trust (SLAT) has its own valuation, distribution and tax rules. This calculator applies no automatic trust exclusion or guaranteed tax saving.
Current law and planning outcomes depend on the date of death, prior gifts, portability elections, trust terms, and state law. Spousal Lifetime Access Trusts (SLATs) may fit some married couples, but irrevocability, loss of direct access, beneficiary changes, and the reciprocal trust doctrine require qualified legal and tax counsel. For upcoming exclusion adjustments and gifting thresholds, explore our 2027 Estate & Gift Tax reference page.
Inherited property generally takes its fair market value at death as its tax basis. This can be a step-up or a step-down. A valid alternate valuation and other special rules can change the result. Income in respect of a decedent (IRD) is excluded from this basis adjustment. Taxable amounts from an inherited traditional IRA are generally IRD, and the decedent’s nondeductible contributions remain relevant to basis. This calculator does not determine inherited basis or capital-gains tax.