What is the current federal estate tax rate?

What the Law Says

The federal estate tax is imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States. The tax is calculated using a graduated rate schedule that applies to the taxable estate after subtracting the applicable exclusion amount.

Under 26 U.S.C. § 2001, the estate tax is imposed on the 'taxable estate' — i.e., the gross estate minus allowable deductions (such as charitable bequests and marital deductions) and the unified credit equivalent exemption.

The statute establishes a progressive rate structure: rates begin at 18% for the lowest bracket and rise incrementally to a top marginal rate of 40% for amounts over $1 million above the exemption threshold.

The exemption amount is adjusted annually for inflation. For 2024, the federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples), meaning estates valued at or below that amount generally owe no federal estate tax.

Statutory Text

A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.

— 26 U.S.C. § 2001(a) — Imposition and rate of tax

Statutory Text

The rate of tax shall be the rate set forth in the following table:

— 26 U.S.C. § 2001(c) — Rate schedule

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