Florida estate tax and federal estate tax in 2026: the $15,000,000 exclusion, portability and Form 706
Florida has no estate, inheritance or gift tax. Federal estate tax applies to estates above a $15,000,000 basic exclusion for 2026 deaths. This page covers the calculation, deductions, portability, Form 706 deadlines and planning tools, each with its official source.
Florida does not tax estates, inheritances or gifts. The Florida Department of Revenue states that a federal change eliminated Florida's estate tax on people who died after December 31, 2004 (Florida DOR, Florida Estate Tax). Its new-resident brochure states that Florida does not impose an inheritance tax or gift taxes (Florida DOR, GT-800025). Art. VII, § 5(a), Fla. Const. caps any state tax on the estates and inheritances of residents at the amounts that may be credited or deducted from a similar federal or state tax (Art. VII, § 5, Fla. Const.).
Federal estate tax applies above an exclusion amount. For a decedent dying in 2026 the basic exclusion amount is $15,000,000 (IRS, Estate tax; 26 U.S.C. § 2010(c)(3)). Public Law 119-21, signed July 4, 2025, set that amount (IRS, What's new: Estate and gift tax). The statute text sets no expiration date for the amount and adjusts it for inflation for decedents dying after 2026.
The tax is paid by the estate's executor (26 U.S.C. § 2002). A beneficiary does not report an inheritance as income (26 U.S.C. § 102(a)), although retirement-account distributions are taxed under their own rules.
Last checked: October 17, 2026. The Sources section lists each cite.
- Federal rate: 40 percent on the amount above the exclusion, from the § 2001(c) table (Table 2).
- Filing: Form 706 is due 9 months after death, with an automatic 6-month extension on Form 4768 (Table 2).
- Portability: a surviving spouse can use the first spouse's unused exclusion only if the first estate files a timely Form 706 and elects it, or qualifies for relief under Rev. Proc. 2022-32 (up to the fifth anniversary of death) (see Portability below).
Which taxes apply to a Florida death
| Tax | Florida | Federal | Source |
|---|---|---|---|
| Estate tax | None for deaths after December 31, 2004. | Yes, above the basic exclusion amount. | Florida DOR; ch. 198, Fla. Stat. (2026); IRS |
| Inheritance tax | None. | None. A federal tax on the estate, not on the heir. | Florida DOR, GT-800025; 26 U.S.C. § 2002 |
| Gift tax | None. | Yes. Gifts count against the same basic exclusion amount, with an annual exclusion per recipient. | Florida DOR, GT-800025; IRS, Gift tax |
Section 198.02 measures Florida's tax by the federal credit for state death taxes (§ 198.02). That credit, former 26 U.S.C. § 2011, is repealed, and 26 U.S.C. § 2058 now gives a deduction for state death taxes actually paid (§ 2011; § 2058). Personal representatives have not been required to file the Florida affidavits DR-312 or DR-313 since July 1, 2023 (Florida DOR).
2026 federal figures
| Item | 2026 amount or rule | Source |
|---|---|---|
| Basic exclusion amount (deaths in 2026) | $15,000,000 | IRS; § 2010(c)(3)(A) |
| Highest estate and gift tax rate | 40 percent on amounts over $1,000,000: $345,800 plus 40 percent of the excess | § 2001(c) |
| Annual gift exclusion per recipient | $19,000 (also $19,000 for 2025) | IRS, What's new |
| GST exemption amount | Equal to the basic exclusion amount for the year | § 2631(c) |
| Estate tax return due | 9 months after the date of death | § 6075(a) |
| Extension to file | Automatic 6 months on Form 4768 | IRS, About Form 4768 |
| Gift tax return due | April 15 after the year of the gift (Form 709) | § 6075(b)(1) |
| Estate tax return required | When the gross estate plus adjusted taxable gifts and specific gift tax exemption exceeds the filing threshold for the year of death, shown on the IRS estate tax page | IRS; § 6018(a) |
Basic exclusion amount by year of death, from the IRS table: 2024 $13,610,000; 2025 $13,990,000; 2026 $15,000,000 (IRS, What's new).
How the federal tax is calculated
The IRS describes the order: add up the gross estate at fair market value, subtract allowed deductions to reach the taxable estate, add lifetime taxable gifts, compute the tax, then reduce it by the unified credit (IRS, Estate tax). The credit is the tentative tax on the applicable exclusion amount (§ 2010(c)(1)).
The examples below are arithmetic from the § 2001(c) table. The dollar amounts of the estates are hypothetical. They are not a prediction for any family.
| Case | Taxable estate | Tentative tax | Credit | Tax owed |
|---|---|---|---|---|
| Single decedent | $14,000,000 | $5,545,800 | $5,945,800 (on $15,000,000) | $0 |
| Single decedent | $20,000,000 | $7,945,800 | $5,945,800 (on $15,000,000) | $2,000,000 |
| Surviving spouse with the first spouse's full $15,000,000 unused amount elected, both die in 2026 (exclusion $30,000,000) | $32,000,000 | $12,745,800 | $11,945,800 (on $30,000,000) | $800,000 |
Tentative tax is $345,800 plus 40 percent of the amount over $1,000,000 (§ 2001(c)). Credit is the tentative tax on the exclusion amount (§ 2010(c)). Example 1: $345,800 + 0.40 × $13,000,000 = $5,545,800. Example 2: $345,800 + 0.40 × $19,000,000 = $7,945,800, less $5,945,800 = $2,000,000, which is 40 percent of the $5,000,000 over the exclusion. Example 3: tentative tax $12,745,800 less the credit on $30,000,000, $11,945,800.
Deductions that reduce the taxable estate
| Deduction | Rule | Source |
|---|---|---|
| Marital deduction | Property that passes from the decedent to a surviving spouse is deductible under § 2056(a). The deduction defers the tax until the second death, and it does not reduce the second spouse's estate. | 26 U.S.C. § 2056(a) |
| Spouse who is not a U.S. citizen | The marital deduction is disallowed unless the property passes to a qualified domestic trust. | § 2056(d); § 2056A |
| QTIP election | Qualified terminable interest property is treated as passing to the surviving spouse, so a trust can give the spouse income and still qualify. | § 2056(b)(7) |
| Charitable deduction | Bequests to qualifying organizations are deductible under § 2055. | 26 U.S.C. § 2055 |
| Debts, mortgages, administration expenses | Deductible in arriving at the taxable estate. | IRS, Estate tax |
Portability for married couples
Portability lets a surviving spouse add the first spouse's deceased spousal unused exclusion (DSUE) amount to the survivor's own exclusion. The DSUE is the lesser of the basic exclusion amount or the unused part of the first spouse's applicable exclusion (§ 2010(c)(4)).
The election is made on an estate tax return filed on time, including extensions. It is irrevocable, and the statute allows no election on a late return except through the relief described below (§ 2010(c)(5)(A); 26 C.F.R. § 20.2010-2). An estate that elects portability is treated as required to file a return, so the due date is 9 months after death, or 15 months with the automatic extension.
Relief for small estates: if the estate was not required to file under § 6018(a), the IRS allows the portability election on or before the fifth anniversary of the date of death, with the return marked "FILED PURSUANT TO REV. PROC. 2022-32" (Rev. Proc. 2022-32, sections 3 and 4).
Planning tools and the law behind each
Each row names the Code or Florida section that governs the tool. Whether a tool fits a family is a question for the family's attorney and tax adviser.
| Tool | What the law says | Source |
|---|---|---|
| Annual exclusion gifts | Gifts up to the annual exclusion per recipient ($19,000 in 2026) do not use the lifetime exclusion. Spouses who consent can split gifts. | IRS, What's new; § 2503(b); § 2513 |
| Lifetime gifts above the annual exclusion | Adjusted taxable gifts are added back in computing the estate tax and use the same exclusion amount. Gift tax paid within 3 years of death is pulled back into the gross estate. | § 2001(b); § 2010(c); § 2035(b) |
| Irrevocable life insurance trust | Insurance proceeds are in the gross estate if the decedent held incidents of ownership. A transfer of a policy within 3 years of death is pulled back. | § 2042; § 2035(a) |
| Grantor retained annuity trust | In a transfer in trust to a family member, a retained interest that is not a qualified interest is valued at zero. Qualified interests are valued under the special rules in the section. | § 2702 |
| Charitable remainder trust | Defined in § 664. Charitable interests qualify for the estate tax charitable deduction under § 2055. | § 664; § 2055 |
| Dynasty trust | For a Florida trust created on or after July 1, 2022, 1,000 years replaces the 90-year perpetuities period unless the terms require a shorter one. The GST exemption equals the basic exclusion amount. | § 689.225(2)(g); § 2631(c) |
| Qualified disclaimers | A disclaimer meeting § 2518 is treated as if the property never passed to the disclaiming person. | § 2518 |
For trusts created from January 1, 2001 through June 30, 2022 the substitute period is 360 years under § 689.225(2)(f).
Basis, reporting and the income tax side
- Basis at death. Property acquired from a decedent generally takes a basis equal to its fair market value at death (26 U.S.C. § 1014). The stepped-up basis guide covers the Florida cases.
- Consistent basis reporting. An executor required to file Form 706 must give the IRS and beneficiaries basis statements on Form 8971 (IRS, What's new, citing § 6035). The IRS says not to file Form 8971 if no estate tax return is required.
- Forms. About Form 706 lists Form 706 and its schedules. The IRS page was updated October 6, 2026.
Sources
Last checked: October 17, 2026.
- Florida DOR, Florida Estate Tax, accessed October 17, 2026. No Florida estate tax for deaths after December 31, 2004; DR-312 and DR-313 not required from July 1, 2023.
- Florida DOR, Tax Information for New Residents, GT-800025 (R. 08/25). Florida imposes no inheritance tax or gift taxes.
- Art. VII, § 5, Fla. Const.. Estate, inheritance and income taxes.
- Ch. 198, Fla. Stat. (2026) and § 198.02, Fla. Stat. (2026). Estate taxes; tax upon estates of resident decedents.
- § 689.225, Fla. Stat. (2026). Statutory rule against perpetuities.
- IRS, Estate tax, page updated December 22, 2025, accessed October 17, 2026.
- IRS, What's new: Estate and gift tax, page updated July 23, 2026, accessed October 17, 2026.
- IRS, About Form 706, page updated October 6, 2026. IRS, About Form 4768. IRS, Gift tax, page updated July 15, 2026.
- Rev. Proc. 2022-32, IRS. Simplified portability election, five years.
- 26 C.F.R. § 20.2010-2. Portability provisions applicable to the estate of a decedent survived by a spouse.
- 26 U.S.C. §§ 102, 664, 1014, 2001, 2002, 2010, 2011, 2035, 2042, 2055, 2056, 2056A, 2058, 2503, 2513, 2518, 2631, 2702, 6018 and 6075, Legal Information Institute text, accessed October 17, 2026.
What people ask us about this.
Does Florida have an estate tax or inheritance tax?
At what amount is an estate subject to federal estate tax in 2026?
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What is the federal estate tax rate?
When is Form 706 due?
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