# Estate Tax Exemptions Explained

> Federal estate tax exemption rises with inflation, but few estates pay federal tax.
- Title: Estate Tax Exemptions Explained · Kiplinger | Shortify
- Summary: Federal estate tax exemption rises with inflation, but few estates pay federal tax. The federal estate tax exemption is $15 million for deaths in 2026…
- Keywords: federal estate tax, lifetime exemption, tax returns, estate tax exemption, inflation adjustment, taxable estates, state estate taxes, Estate, Tax, Exemptions, Explained, Kiplinger
- Source: Kiplinger — https://kiplinger.com/taxes/tax-law/ask-the-tax-editor-october-9-questions-on-estate-taxes
- Published: 2026-10-09T11:10:00+00:00
- Read time: 1 min
- Topics: federal estate tax, lifetime exemption, tax returns, estate tax exemption, inflation adjustment, taxable estates, state estate taxes
## Federal Estate Tax Exemption
The federal estate tax exemption for deaths in 2026 is $15 million, increasing yearly with inflation.
## Few Estates Pay Federal Tax
About 7,000 Form 706 estate tax returns are filed annually, with more than half from taxable estates.
## Taxable Estate Filings
The Tax Policy Center estimates 6,890 federal estate tax returns for 2026, with 3,900 from taxable estates.
## Inherited Property Tax
Inheritances are generally tax-free for federal purposes, with stepped-up tax basis at fair market value.
## State Estate Taxes
Washington, D.C., and 12 states levy estate taxes: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington.
## Inheritance Tax States
Five states impose inheritance taxes: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
## State Tax Exemptions
Most state estate tax exemptions are far below the federal exemption, with only Connecticut close to the federal level.
## Key takeaway

The federal estate tax exemption is $15 million for deaths in 2026, increasing yearly with inflation, but only about 7,000 estates file federal estate tax returns annually.