Skip to main content
Alaska Estate Tax and Federal Estate Tax
Support GuideAlaska14 min read

Alaska Estate Tax and Federal Estate Tax

Alaska has collected no state estate tax since 2005. The federal tax reaches 2026 estates over $15,000,000, with Form 706 due in nine months.

By Settled Editorial

Alaska collects no state estate tax. The Alaska Court System states it plainly: "As of 2005, Alaska no longer collects a state estate tax." The federal estate tax still applies to every Alaska estate, and for a 2026 death it reaches only an estate worth more than $15,000,000 after the federal rules add back taxable lifetime gifts. Most Alaska families will owe no estate tax at all, though some will still want to file a federal return.

Here is how we sourced this page. The Alaska Statutes live at akleg.gov, and that host answers our research agent with an HTTP 403 page reading "Please contact the site owner for access." We did not read the statutes there or through any copy of them. The Alaska rules below come from the Alaska Court System itself, its Federal Tax Matters page and the Alaska Rules of Probate Procedure, read on September 28, 2026. The federal figures come from the IRS and from the text of the Internal Revenue Code at uscode.house.gov, read the same day.

The personal representative carries the filing duty, so read this page beside who files a federal return. It is general information about Alaska and federal law, not advice about one estate.

What the Alaska Court System Says About State Estate Tax

The Court System's Federal Tax Matters page asks "Does Alaska have a state estate tax?" and answers "No. As of 2005, Alaska no longer collects a state estate tax."

The same answer adds one warning. If the person who died was a resident of another state, or owned property in another state, that state may charge its own estate tax. A cabin in Washington or a house in Hawaii can bring another state's tax into an Alaska estate, so check each state where the person held real property.

Alaska also has no state individual income tax, according to the same page. Income earned in another state can still be taxed there.

Do you need probate in Alaska?

Answer a few questions to see whether Alaska probate is required and which process applies.

Take the 2-minute assessment

Why a Probate Rule Still Mentions State Estate Tax Returns

Before letters issue, every Alaska personal representative signs an acceptance of duties. Alaska Probate Rule 7 lists what that acceptance acknowledges, and item (e) is the duty to "file returns for state estate taxes if required by AS 43.31.121 and AS 43.31.250."

So the rule still points at an estate tax chapter in the Alaska Statutes, even though the Court System says the state has collected nothing under it since 2005. We could not read AS 43.31 itself, because akleg.gov refuses Claude-identified agents, and the Department of Revenue's tax site disallows automated readers. So we say only what the Court System says: Alaska does not collect the tax. If a question about your estate turns on the wording of AS 43.31, ask a tax lawyer or a certified public accountant.

The Federal Estate Tax for a 2026 Death

The federal estate tax is a tax on the transfer of everything a person owns or holds certain interests in at death. The Alaska estate tax calculator screens an estate against the federal exemption, since Alaska collects no tax of its own. The IRS measures that property at fair market value on the date of death, and the total is the gross estate.

Let's break down what goes in. The IRS lists cash and securities, real estate, insurance, trusts, annuities and business interests. The Court System's page adds that the tax reaches both probate property and nonprobate property, including life insurance and retirement benefits. Property that skips probate, such as a transfer-on-death deed or a payable-on-death account, still counts. That is why avoiding probate does not avoid federal tax.

The 2026 Exclusion Is $15,000,000

Public Law 119-21, signed July 4, 2025, amended 26 U.S.C. 2010(c)(3). The Code now sets the exclusion amount at $15,000,000 for 2026. For a death after 2026, the statute raises that figure each year for inflation, rounded to the nearest $10,000.

The IRS publishes the filing threshold by year of death:

Year of deathFiling threshold
2023$12,920,000
2024$13,610,000
2025$13,990,000
2026$15,000,000

An older summary may quote a much lower threshold. For a current death, use the IRS table for the year the person died.

What Triggers a Filing

The IRS requires Form 706 when the gross estate, increased by the person's adjusted taxable gifts and any specific gift tax exemption, is worth more than the filing threshold for the year of death. Large lifetime gifts count toward the test, even though the gifted property left the estate years earlier.

The IRS adds that most relatively simple estates, such as cash, publicly traded securities and jointly held property with no special deductions or elections, do not need to file.

Deductions and the Rate

Next steps in the math. The IRS subtracts deductions from the gross estate to reach the taxable estate. The deductions include mortgages and other debts, estate administration expenses, property that passes to a surviving spouse and property left to qualified charities. Property passing outright to a surviving spouse qualifies for the marital deduction, and the IRS says some life estates qualify too.

26 U.S.C. 2001(c) sets the rate table. Its top bracket applies to amounts over $1,000,000: "$345,800, plus 40 percent of the excess of such amount over $1,000,000." The unified credit under 26 U.S.C. 2010 then offsets the tax on the first $15,000,000, so each dollar of taxable estate above the exclusion is taxed at 40 percent. The Court System adds that other federal transfer taxes, such as the generation-skipping transfer tax on property passing to grandchildren or great-grandchildren, can apply as well.

Filing Form 706 and Paying the Tax

The return is due nine months after the date of death. The IRS and the Court System both give that date.

  • Extension to file. The IRS grants an automatic six-month extension of time to file to any estate that files Form 4768 on or before the due date.
  • Payment. The extension covers the paperwork only. The IRS says the correct tax is still due at nine months, and interest accrues on any amount left unpaid after that date.
  • Supplemental returns. If something changes after filing, the IRS directs the estate to file another Form 706 marked "Supplemental" with a statement of what changed.

Who Pays

The Court System's page says the personal representative usually prepares the estate tax return and pays the tax from estate property. It then sets out how the burden is shared:

  • Each interested person shares in the tax in proportion to their share of the estate, unless the will says differently.
  • The court can change those percentages.
  • The personal representative can deduct a person's share of the tax before transferring property to them, can recover the tax from a person who already received property, and can require a bond to secure a person's share before a transfer.
  • The court can hold the personal representative personally responsible for interest or penalties that were the personal representative's fault.

The Court System's page does not print a statute number for these rules, so we give none.

Portability: Filing When No Tax Is Due

When a married person dies, the unused part of their exclusion can pass to the surviving spouse. The Code calls it the deceased spousal unused exclusion amount, and the IRS calls the election that moves it the portability election.

Here is why this matters for an estate that owes nothing. Under 26 U.S.C. 2010(c)(5)(A), the surviving spouse gets the unused amount only if the executor files an estate tax return that computes it and makes the election. The IRS says an estate must file Form 706 to make that election "regardless of the size of the gross estate." The same Code section makes the election irrevocable.

The deadline has a fallback. For an estate under the filing threshold, IRS Revenue Procedure 2022-32 allows a complete, properly prepared return filed on or before the fifth anniversary of the death, marked at the top as filed under that revenue procedure. An estate over the threshold gets no such extension.

Community Property and the Basis Adjustment

Alaska lets married couples opt into community property. The Court System explains that spouses can choose to treat property as community property by creating a special agreement or trust under the Alaska Community Property Act. Couples who never signed one hold ordinary separate or joint property.

The choice changes the income tax on a later sale. The Court System gives this example:

  1. Spouses pay $10,000 for land and hold it jointly. One spouse dies when the land is worth $60,000.
  2. Only the deceased spouse's half gets a new basis, $30,000. The survivor's half stays at $5,000, for a combined basis of $35,000.
  3. If the land sells for $100,000, tax is due on $65,000 of gain.
  4. If the same land was community property, the basis of the entire property moves to $60,000, and tax is due on only $40,000 of gain.

That adjustment is an income tax rule, separate from the estate tax, and it applies whether or not the estate owes estate tax. For the full rules on the tax on a later sale, and for how the opt-in regime shapes community property at the first death, read those two guides.

The Other Federal Returns an Alaska Estate Files

The estate tax return is the one most families never need. The Court System's Federal Tax Matters page lists the returns and forms that come up far more often:

  • Final Form 1040 for the person who died, covering income from January 1 to the date of death, due April 15 of the following year.
  • Form 1041, the income tax return for estates and trusts, once the estate receives more than $600 of income in a tax year. The estate can choose a calendar year or a fiscal year, and returns are due each year until the estate closes.
  • Form SS-4 for an Employer Identification Number, which the estate needs for its bank account. The Court System says never to use your own Social Security number for the estate.
  • Form 56, Notice Concerning Fiduciary Relationship, so the IRS sends the person's tax information to the personal representative.

The Court System also warns that the IRS has priority over most creditors. Before transferring property to heirs or beneficiaries, make sure the estate has paid any overdue income taxes and that the IRS has released or agreed to the transfer of any tax lien.

What an Alaska Personal Representative Should Do Next

  1. Add up the gross estate at date-of-death values, including life insurance, retirement accounts and property that passes outside probate, plus any taxable lifetime gifts.
  2. Compare the total with the IRS threshold for the year of death: $15,000,000 for 2026.
  3. If a spouse survives, decide whether to file Form 706 for portability, even with no tax due.
  4. Check other states where the person lived or owned property for an estate tax of their own.
  5. Mark nine months after death on the calendar, and file Form 4768 before that date if the return will be late.
  6. Talk to a probate lawyer, a tax lawyer or a certified public accountant before filing, as the Court System recommends for every estate tax question.

The probate steps around these duties are in the Alaska probate guide and the Alaska probate timeline.

Frequently Asked Questions

Does Alaska have an estate tax?

The Alaska Court System answers this directly: as of 2005, Alaska no longer collects a state estate tax. The Court System adds that if the person who died lived in another state or owned property in another state, that state may charge its own estate tax. The federal estate tax still applies to an Alaska estate large enough to owe it, which for a 2026 death means an estate above the $15,000,000 federal exclusion amount.

Why does Alaska Probate Rule 7(e) still mention state estate tax returns?

Probate Rule 7 lists the duties a personal representative accepts before letters issue, and item (e) is to file returns for state estate taxes if required by AS 43.31.121 and AS 43.31.250. The rule still carries that line, so the chapter it points to is still cited. The Court System's own tax page says Alaska has collected no state estate tax since 2005. We could not read AS 43.31 itself, because akleg.gov refuses Claude-identified agents, so if a question turns on that chapter, ask a tax lawyer or a certified public accountant.

What is the federal estate tax exemption for 2026?

$15,000,000. Public Law 119-21, signed July 4, 2025, amended 26 U.S.C. 2010(c)(3) to set the exclusion amount at $15,000,000 for 2026, and the IRS filing-threshold table lists $15,000,000 for a 2026 death. The statute adjusts that figure for inflation for deaths after 2026. For comparison, the IRS table shows $13,990,000 for 2025 and $13,610,000 for 2024.

When is a federal estate tax return due for an Alaska estate?

Form 706 is due nine months after the date of death. The IRS grants an automatic six-month extension of time to file to any estate that files Form 4768 on or before the due date, but the tax itself is still due at nine months, and interest runs on any amount left unpaid after that date. The Alaska Court System gives the same nine-month deadline on its Federal Tax Matters page.

Who pays the federal estate tax in Alaska?

The Alaska Court System says the personal representative usually prepares the estate tax return and pays the tax from estate property. Each interested person shares the tax in proportion to their share of the estate unless the will says otherwise, and the court can change those percentages. The personal representative can hold back a person's share of the tax before distributing property to them, and the court can make the personal representative pay interest or penalties personally if they were the personal representative's fault.

Should an Alaska estate file Form 706 even when no tax is due?

Sometimes. When a married person dies, the executor can elect to pass the unused part of that person's exclusion to the surviving spouse, and the IRS says that portability election is made only on a timely filed Form 706, whatever the size of the estate. For an estate under the filing threshold, IRS Revenue Procedure 2022-32 allows a late election on a complete return filed by the fifth anniversary of the death. Under 26 U.S.C. 2010(c)(5)(A), the election is irrevocable once made.

Related Guides

This page describes Alaska and federal law broadly rather than advising on one estate. Tax outcomes turn on the date of death, lifetime gifts, how a couple held title and figures that differ from family to family, so take yours to a certified public accountant or a tax lawyer.

Sources:

It is not legal advice.

Information current as of September 28, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Alaska can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.

All Alaska guides← Back to all articles

More Alaska Resources

Explore the rest of the Alaska probate hub.

Do I need probate?5 pages
For the executor4 pages
Money and taxes5 pages
Family and inheritance5 pages
Transfer assets5 pages
File and learn5 pages