Estate Tax
A tax on the value of the estate itself, paid out of the estate before beneficiaries get anything.
What Estate Tax means in an estate
The federal estate tax applies only above a large exemption that changes over time, so the overwhelming majority of estates owe nothing. Separately, only some states impose an estate tax of their own, usually with a lower exemption than the federal one. Because the exemptions move and the state rules differ, never assume a threshold you read somewhere applies to your estate or your year. Estate tax is charged to the estate, which is what distinguishes it from inheritance tax.
How this works in your state
The concept is national, but the forms, procedure names, thresholds, and filing practice vary by state. Open your state glossary and guides to see how estate tax is handled where the estate is being settled.
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Information current as of April 4, 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 your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.