US FederalIs there a federal inheritance tax separate from the estate tax?
No, there is no federal inheritance tax in the United States. The federal government imposes only an estate tax—not an inheritance tax—on the transfer of a deceased person’s assets.
What the Law Says
Federal law does not impose an inheritance tax—the tax is levied on the estate itself before distribution, not on beneficiaries receiving assets. The sole federal death-related tax is the estate tax, governed by the Internal Revenue Code.
The federal estate tax applies to the total value of a deceased person’s taxable estate. It is paid by the estate—not the heirs—before assets are distributed.
The tax only applies if the gross estate exceeds the applicable exemption amount, which is $13.61 million per individual in 2024 (indexed for inflation). Estates below that threshold generally owe no tax.
The tax rate ranges from 18% to 40%, with the top rate applying to amounts over $1 million above the exemption.
Statutory TextA 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. Code § 2001 — Imposition and rate of tax
What to Do
Determine the gross estate value (including real estate, investments, life insurance proceeds, and other assets).
Subtract allowable deductions (e.g., debts, funeral expenses, charitable bequests) to calculate the taxable estate.
Compare the taxable estate to the current federal exemption ($13.61M in 2024); if below, no return is typically required.
If above the exemption, file IRS Form 706 within 9 months of death (extensions available).
Pay any tax due—or arrange for installment payments if qualifying as a closely held business estate.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.