2028 Estate Tax Exemption
2028 federal estate tax: exemption $15.4M projected (OBBB-permanent), 40% rate above. Portability + marital deduction can double the exempt amount for couples.
| Gross estate | — |
| Debts + admin | — |
| Charitable bequest | — |
| Net estate | — |
| DSUE from spouse | — |
| 2028 exemption (incl DSUE) | — |
| Taxable estate | — |
| 2028 estate tax | — |
The 2028 federal estate tax exemption is projected at $15.4M per individual under OBBB (P.L. 119-21, July 2025). The TCJA sunset that would have halved the exemption to $7M never happened — OBBB made the higher exemption permanent and indexed for inflation. Top rate stays 40%.
OBBB Made It Permanent
The One Big Beautiful Bill Act (signed July 4, 2025) raised the estate exemption to $15M for 2026 and made it permanent with annual CPI adjustment. The widely-feared TCJA sunset that would have halved it in 2026 was averted. Estate planning that assumed the sunset (e.g. urgent gifting) may need to unwind.
Portability + DSUE
Surviving spouse can claim Deceased Spousal Unused Exemption (DSUE) via Form 706 election within 9 months (extendable). 2028 combined potential: $30.8M for married couples. Unused DSUE is forfeited if Form 706 isn't filed timely.
State Estate Tax
Federal exemption ≠ state. 12 states + DC have separate estate tax with much lower thresholds: OR ($1M), MA ($2M), WA ($2.193M), MN ($3M), HI/MD/CT (varies). Plan state-by-state — high-net-worth retirees often relocate.
Annual Gift Exclusion
Use $19,000 annual gift exclusion (2028 projected) to reduce taxable estate without using lifetime exemption. Per recipient, per year. $30,000 if MFJ (split gift). Plus unlimited direct-pay tuition/medical.
Last updated May 2026. Sources: IRS Estate Tax.