Estate Tax Thresholds Change: Who Tracks Them

The federal estate tax affects relatively few estates, but the rules about which estates must file can change. The filing threshold depends on the year of death, and Congress can change it by law. That is why it is risky to rely on a number you read years ago, or on a figure in an old article. This guide explains, in general terms, how the federal estate tax works, where the official figures are published, and who usually keeps track of them for an estate. On purpose, it does not list dollar amounts. Check the current figures on the IRS website.

What the federal estate tax is

The IRS describes the estate tax on its estate tax page as a tax on your right to transfer property at your death. The process starts with an accounting of everything you own or have certain interests in at the date of death. The IRS explains that fair market value is used, not necessarily what you paid. The total is your gross estate. It can include cash and securities, real estate, insurance, trusts, annuities, business interests, and other assets.

From there, according to the IRS:

• certain deductions are allowed, such as mortgages and other debts, estate administration expenses, property passing to a surviving spouse, and gifts to qualified charities;
• the result is the taxable estate;
• the value of lifetime taxable gifts is added back; and
• the tax is computed and then reduced by the available unified credit.

Not every estate must file

The IRS says most relatively simple estates do not require an estate tax return. A return is required when the gross estate, increased by the person's adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of death. The IRS publishes that threshold in a table on its estate tax page, one row per year of death.

The key point is the year. The threshold that applies is the one for the year the person died, not the year the estate is settled or the year a will was signed.

Why thresholds change

The thresholds are set by federal law and have changed many times. The IRS table shows different amounts across the years, including large jumps in some years. Changes can come from inflation adjustments built into the law and from new legislation. For example, the IRS What's new — Estate and gift tax page explains that a law signed on July 4, 2025, as Public Law 119-21, changed the basic exclusion amount starting with calendar year 2026.

Because of these changes, estate plans written under older rules may be based on assumptions that no longer fit. That does not mean a plan is wrong, but it is a good reason to review it.

Portability for married couples

The IRS explains that, beginning in 2011, the estate of a person survived by a spouse may elect to pass the deceased spouse's unused exclusion to the surviving spouse. This is often called portability. The election is made on a timely filed estate tax return.

This creates an important point: even an estate that does not owe tax and is not otherwise required to file may want to file a return to make the portability election. The IRS notes that simplified valuation provisions apply to estates without a filing requirement that file only for portability. Whether to make the election is a decision to discuss with a tax professional or estate lawyer soon after a death, because timing matters.

Who tracks the thresholds

In practice, several people may be involved:

• The executor or personal representative is responsible for the estate's tax filings. The IRS Information for executors page points executors and surviving spouses to Publication 559, Survivors, Executors, and Administrators, which covers the decedent's final income tax return, the estate's income tax return, and estate or gift tax returns that may need to be filed. It also includes a checklist of forms and due dates.
• An estate planning or tax lawyer can advise on whether a return is required or advisable, on portability, and on how the rules apply to the estate's assets.
• A CPA or enrolled agent often prepares returns and tracks annual changes.
• The person planning their own estate should review the plan when laws change, not only when life events happen.

The IRS itself notes on its executors page that estate and gift tax laws are considered some of the most complicated in the Internal Revenue Code.

State estate and inheritance taxes

The federal estate tax is only part of the picture. Some states have their own estate or inheritance taxes, with their own rules and thresholds that may be very different from the federal ones. A lawyer or tax professional in the relevant state can tell you whether a state tax applies.

Where to check the current figures

Use primary sources:

• the IRS estate tax page, which shows the filing threshold by year of death;
• the IRS What's new page, which notes recent changes; and
• the Instructions for Form 706, the federal estate tax return.

Our tax practice page explains more about tax-related legal help.

Frequently asked questions

Does my estate have to pay federal estate tax?

Most relatively simple estates do not need to file, according to the IRS. Whether a return is required depends on the gross estate, adjusted taxable gifts, and the threshold for the year of death.

Why don't you list the threshold?

Because it changes. The IRS publishes the official figure for each year of death, and that is the number to use.

Should a surviving spouse file even if no tax is due?

Sometimes. Filing may be needed to elect portability of the unused exclusion. Ask a tax professional or estate lawyer promptly.

Do state taxes follow the federal rules?

Not necessarily. Some states have separate estate or inheritance taxes with their own rules.

Related: Browse guides on legal topics.

This page is general information, not legal advice. Laws change and every case is different — talk to a licensed attorney about your situation.