For 2026, you can leave up to $15 million per person before federal estate tax applies. A married couple can pass up to $30 million by combining both exemptions. Arizona has no state estate tax, so the federal amount is the only threshold most families need to watch. And no, the amount is not dropping. The increase many people expected to expire at the end of 2025 was made permanent.
The 2026 Federal Estate Tax Exemption
The federal estate and gift tax share one lifetime exemption. For 2026, that exemption is $15 million per person. If your taxable estate is below that figure, your family owes no federal estate tax. Anything above it is taxed at rates that climb to 40 percent. Because fewer than 1 percent of estates reach this level, the vast majority of Arizona families will never owe a dollar of federal estate tax.
Is the Exemption Changing? The Cut That Did Not Happen
For years, this was a moving target. The 2017 Tax Cuts and Jobs Act roughly doubled the exemption, but that increase was scheduled to expire on December 31, 2025. Without action from Congress, the exemption was set to fall back to roughly $7 million per person in 2026. Many families rushed to make large gifts before the expected drop.
That cut never took effect. The One Big Beautiful Bill Act, signed on July 4, 2025, removed the scheduled expiration and set the exemption permanently at $15 million per person starting January 1, 2026. The amount also adjusts upward for inflation each year going forward. There is no longer a looming deadline, so families can plan at a steadier pace under current law.
How Married Couples Reach $30 Million
Each spouse has their own $15 million exemption. A surviving spouse can also claim any unused portion of the first spouse’s exemption. This is called portability, and it can shield up to $30 million combined.
Portability is not automatic. The executor of the first spouse to die must file a federal estate tax return (IRS Form 706) and elect portability, even when no tax is owed. Skipping this step can quietly forfeit millions in exemption. Filing on time is one of the most valuable and most overlooked moves in estate planning.
Does Arizona Add Its Own Estate Tax?
No. Arizona has no state estate tax, no inheritance tax, and no state gift tax. That makes Arizona one of the friendlier states for passing wealth to your family. The federal exemption is the only number you need to weigh.
What This Means for Your Plan
For most Arizona families, the estate tax is not the real concern. The planning focus is usually avoiding probate, protecting you if you become unable to manage your own affairs, and keeping beneficiary designations and trust funding current.
If your estate is near or above the exemption, planning matters more. Lifetime gifting using the annual gift tax exclusion, irrevocable trusts, and other strategies can reduce a taxable estate over time. The attorneys we work with can map the right approach to your family’s goals.
For the full Arizona walkthrough of federal estate, gift, and GST tax planning, including portability, the lifetime exemption, and annual exclusion gifts, read our pillar guide: Estate, Gift & GST Tax in Arizona: The Complete Guide.