Estate Tax Exemption and Rate History
Direct answer: The federal estate tax exemption for 2025 is $13,990,000 per person ($27,980,000 per married couple with portability). The Tax Cuts and Jobs Act roughly doubled the exemption in 2018. The doubled exemption is scheduled to sunset after 2025, reverting to approximately $7 million. Congress may extend it.
Federal estate tax exemption and top rate by year (2001-2025)
| Year | Exemption | Top Rate |
|---|---|---|
| 2001 | $675,000 | 55% |
| 2002 | $1,000,000 | 50% |
| 2003 | $1,000,000 | 49% |
| 2004 | $1,500,000 | 48% |
| 2005 | $1,500,000 | 47% |
| 2006 | $2,000,000 | 46% |
| 2007 | $2,000,000 | 45% |
| 2008 | $2,000,000 | 45% |
| 2009 | $3,500,000 | 45% |
| 2010 | Repealed (opt-in available) | 0% / 35% opt-in |
| 2011 | $5,000,000 | 35% |
| 2012 | $5,120,000 | 35% |
| 2013 | $5,250,000 | 40% |
| 2014 | $5,340,000 | 40% |
| 2015 | $5,430,000 | 40% |
| 2016 | $5,450,000 | 40% |
| 2017 | $5,490,000 | 40% |
| 2018 | $11,180,000 | 40% |
| 2019 | $11,400,000 | 40% |
| 2020 | $11,580,000 | 40% |
| 2021 | $11,700,000 | 40% |
| 2022 | $12,060,000 | 40% |
| 2023 | $12,920,000 | 40% |
| 2024 | $13,610,000 | 40% |
| 2025 | $13,990,000 | 40% |
Source: IRS: Estate Tax. Last verified: September 2026. Verify current-year figures at IRS.gov before making decisions.
TCJA sunset note
The Tax Cuts and Jobs Act (2017) roughly doubled the exemption from approximately $5.5 million to $11.18 million per person, effective for deaths on or after January 1, 2018. This provision sunsets December 31, 2025, unless Congress acts. Without legislation, the exemption reverts to approximately $7 million (the 2017 base of $5 million, inflation-adjusted). Gifting strategies and irrevocable trust planning before the sunset is a consideration for estates near this range.
Frequently asked questions
What is the estate tax exemption for 2025?
The estate tax exemption for 2025 is $13,990,000 per person, or $27,980,000 for a married couple using portability. Estates below this threshold owe no federal estate tax. The exemption was roughly doubled by the Tax Cuts and Jobs Act in 2018 and has been indexed to inflation since then.
What happens to the estate tax exemption after 2025?
The TCJA's doubled exemption is scheduled to sunset December 31, 2025, reverting to approximately $7 million inflation-adjusted from the 2017 base of $5 million. This would subject many more estates to federal estate tax. Congress may act to extend the doubled exemption, but planning for both scenarios is prudent given legislative uncertainty.
What is estate tax portability?
Portability allows a surviving spouse to use any unused exemption from their deceased spouse (the Deceased Spousal Unused Exclusion, or DSUE). If a spouse dies in 2025 having used none of the $13,990,000 exemption, the surviving spouse can add that $13,990,000 to their own exemption. Portability must be elected on a timely filed estate tax return (Form 706) even if no tax is owed.