United States · Federal estate tax
Federal estate tax exemption 2027.
The basic exclusion for people who die in 2027, how portability works and what the 40 percent rate applies to.
Short answer: For people who die in 2027 the federal basic exclusion amount is $15,480,000, up from $15,000,000 in 2026. A married couple can shelter up to $30,960,000 using both exclusions. Amounts above the exclusion are taxed at 40 percent.
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The 2027 basic exclusion amount
Rev. Proc. 2026-35 section 3.44 sets the basic exclusion amount under section 2010(c)(3) at $15,480,000 for 2027. The same number is the gift tax lifetime exclusion and the generation-skipping transfer exemption. It is the amount a person can leave, together with taxable gifts made during life, before any federal estate tax is due. IR-2026-133 gives the 2026 figure as $15,000,000.
| Item | 2027 | 2026 |
|---|---|---|
| Basic exclusion amount, per person | $15,480,000 | $15,000,000 |
| Married couple with portability | $30,960,000 | $30,000,000 |
| Special use valuation limit (section 3.45) | $1,500,000 | $1,460,000 |
| Top estate tax rate | 40% | 40% |
How the tax is figured
The estate tax base is the taxable estate plus lifetime taxable gifts. The tax is computed on that total and reduced by a credit equal to the tax on the exclusion amount. Because the 40 percent bracket begins at $1,000,000 and the exclusion is far above that, the result for an estate over the exclusion is simply 40 percent of the excess. A surviving spouse can add the deceased spouse's unused exclusion (DSUE) when the executor elected portability on a timely estate tax return.
What changed from 2026
The exclusion rose $480,000, from $15,000,000 to $15,480,000. The cap on the value reduction from special use valuation of farm and business real property rose from $1,460,000 to $1,500,000. The tax rate is unchanged.
Worked examples (2027)
An estate of $20,000,000 taxable value with no prior taxable gifts is $4,520,000 over the $15,480,000 exclusion, so the federal estate tax is 40 percent of that, $1,808,000.00. An estate of $12,000,000 with $1,500,000 of earlier taxable gifts has a base of $13,500,000, which is $1,980,000 under the exclusion, so no federal estate tax is due, but only $1,980,000 of exclusion remains.
Common mix-ups
- The exclusion is not an annual amount. It is a lifetime total shared between taxable gifts and the estate. The annual gift exclusion is a separate and much smaller figure.
- Being under the exclusion does not mean no state estate tax. Some states tax estates well below the federal amount, and this page does not model them.
- The marital deduction is not the exclusion. Assets left to a U.S. citizen spouse are generally deducted from the taxable estate, which is why the calculator asks for the taxable estate.
- The 2027 amount is not for people who die in 2026. Estates of people who died in 2026 use $15,000,000.
Method
The estimator adds the taxable estate and prior taxable gifts, then subtracts the 2027 exclusion plus any unused exclusion from a deceased spouse. Anything over is multiplied by 40 percent, the rate in the statute's rate table (26 U.S.C. 2001(c)) for every dollar above $1,000,000. Where the total is under the exclusion it shows how much exclusion is left. The 2026 line runs the same inputs with the 2026 exclusion.
What this does not cover
- The marital, charitable and debt deductions that produce the taxable estate.
- State estate and inheritance taxes.
- Generation-skipping transfer tax, which uses the same exemption amount.
- Estates of nonresidents who are not citizens, which follow different rules.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Rev. Proc. 2026-35 (tax year 2027 inflation adjustments), sections 3.44 and 3.45 (retrieved November 9, 2026)
- IRS news release IR-2026-133, November 5, 2026 (retrieved November 9, 2026)
- IRS Rev. Proc. 2025-32 (tax year 2026 figures used for the comparison column) (retrieved November 9, 2026)
- 26 U.S.C. 2001: estate tax rate schedule (Cornell LII) (retrieved November 9, 2026)
Frequently asked questions
What is the federal estate tax exemption for 2027?
$15,480,000 per person for people who die in 2027, up from $15,000,000 in 2026.
How much can a married couple pass on in 2027?
Up to $30,960,000 if the surviving spouse uses the deceased spouse's unused exclusion through a portability election.
What is the federal estate tax rate in 2027?
The top rate is 40 percent on the taxable amount above the exclusion.
Is the estate tax exemption the same as the gift tax exemption?
They share one lifetime basic exclusion amount, so taxable gifts during life reduce the amount left for the estate. The annual gift exclusion is separate.
How much tax is due on a $20,000,000 estate in 2027?
$1,808,000.00, which is 40 percent of the $4,520,000 above the $15,480,000 exclusion, ignoring deductions.
What is the special use valuation limit for 2027?
$1,500,000, the most an executor can reduce the value of qualified real property by electing special use valuation under section 2032A.
Where does the 2027 number come from?
IRS Revenue Procedure 2026-35, section 3.44, announced in news release IR-2026-133 on November 5, 2026.
Not legal or tax advice
These are the IRS figures for tax year 2027 in an unofficial guide that no tax agency runs. A result here is an estimate from the numbers on this page, not a return. Nothing you type is transmitted anywhere. Confirm with IRS forms and instructions or a tax professional before you file.