Inheritance tax in United States 2026

The US taxes the estate, never the heir — and from 2026 each person passes $15 million free (about $30 million per couple, since unused exclusion transfers to the survivor). Above that, the rate quickly reaches 40%.

Heirs receive assets with a stepped-up basis, erasing lifetime capital gains, and everything left to a citizen spouse is untaxed regardless of amount.

For non-residents the picture inverts: only $60,000 of US-located assets are shielded — and shares of US companies count as US-located — a classic trap for foreign investors.

At a glance

top rate: 40% (federal) above the exclusion
entry band: $15,000,000 per person excluded (2026, inflation-indexed)
tax year basis: Charged on the estate at death; gifts count against the same lifetime total
filing deadline: Estate return within 9 months of death
residency basis: Citizens/domiciliaries: worldwide estate; others: US-located assets
regime flag: $19,000 annual gift exclusion per recipient

Rates

Federal estate and gift tax (2026)

Rate	Base	Applies to
0%	—	Estates and lifetime gifts within the $15 million unified exclusion; unlimited transfers to a citizen spouse
18% – 40%	Taxable transfers above the exclusion	40% applies beyond the first $1 million of taxable excess
40%	Generation-skipping transfers	Gifts/bequests skipping a generation, above a separate $15 million exemption
0% / 40%	US-located assets above $60,000	Non-domiciled foreigners — US real estate, tangible property and US company shares

Thresholds & allowances

Annual gift exclusion$19,000 per recipient per year (2026)
Unlimited recipients; married couples can give $38,000 jointly without touching the lifetime total
Non-citizen spouseGifts capped at $194,000 a year (2026)
The unlimited marital deduction needs a citizen spouse or a qualified domestic trust
PortabilitySurviving spouse inherits unused exclusion
Election on the first spouse's estate return

Residency

Residency trigger

Estate and gift tax follow domicile (intent to remain), not the income tax day-count — citizens and US domiciliaries are taxed on worldwide estates with the full exclusion.

Non-resident treatment

Non-domiciled foreigners get only a $60,000 shield on US-located assets — including shares of US companies — at rates to 40%; US bank deposits and portfolio bonds are excluded, and 13 estate tax treaties can reallocate rights. Heirs themselves owe nothing federally.

Notes

A dozen-plus states levy their own estate or inheritance taxes with far lower thresholds — the federal $15 million is not the whole story everywhere.
Gifts within 3 years of death and assets with retained control are pulled back into the estate.
US persons receiving gifts or bequests over $20,573 (2026) from foreigners must report them; transfers from covered expatriates are taxed at 40% in the recipient's hands.
The step-up in basis means large estates below $15 million pass entirely tax-free — no estate tax, no income tax on the gains.

FAQ

How much can you inherit tax-free in the United States?

As an heir, everything — the US has no inheritance tax on recipients. The estate itself pays 40% only above $15 million per deceased person (2026), and transfers to a citizen spouse are unlimited.

Does US estate tax hit foreign investors?

Hard: non-domiciled foreigners get only a $60,000 exemption on US-located assets — and shares of US companies count — before rates up to 40%. Treaties with 13 countries and holding structures are the standard defences.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See inheritance tax in other countries

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