As of July 31, 2025, individuals in the United States can inherit up to $13.99 million without paying federal estate taxes. For married couples, this exemption doubles to $27.98 million, allowing families to transfer significant wealth without triggering a tax bill. These thresholds are part of the current estate tax law, and they remain in effect through the end of 2025.
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Recent Update: Higher Limits Ahead
In a major legislative update passed earlier this month, the federal government approved a permanent increase in the estate tax exemption beginning January 1, 2026. The new law raises the limit to $15 million per person, or $30 million per couple, with automatic adjustments for inflation each year.
This change provides greater clarity and planning power for individuals looking to protect assets for future generations. The increase was a response to growing pressure from families, especially business owners and farmers, who feared a steep drop in the exemption at the end of 2025.
Key Points Summary
- In 2025, individuals can inherit up to $13.99 million tax-free.
- Married couples can inherit up to $27.98 million tax-free.
- Starting in 2026, limits will rise to $15 million per person.
- Any inherited amount above these figures is taxed at 40%.
- Some states impose their own inheritance or estate taxes.
Understanding the Tax-Free Inheritance Limits
The federal estate tax only applies to estates that exceed the set exemption. This means most people won’t pay taxes on inherited money or property, as long as it falls under the threshold. Here’s how it works:
- 2025 Exemption: $13.99 million per person
- Married Couples: $27.98 million total
- Tax Rate: 40% on the amount over the limit
In addition to these lifetime limits, there’s also an annual gift exclusion. For 2025, individuals can gift up to $19,000 to any number of people without touching their lifetime exemption.
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Gift Now, Save Later
If you’re planning to pass on wealth, you can reduce your taxable estate by making annual gifts. The $19,000 per-person limit resets every year. For example:
- Gift $19,000 to each child or grandchild annually
- Couples can jointly give $38,000 to each recipient per year
This strategy allows families to transfer wealth gradually without triggering estate or gift taxes.
Married Couples Can Double the Benefit
By using a combination of estate planning tools, married couples can maximize their exemptions. A commonly used method is the “portability” rule, which allows a surviving spouse to inherit any unused portion of their partner’s exemption. This ensures the full $27.98 million (in 2025) can be used without waste.
What Happens After 2025?
Had the law not changed, the exemption would have dropped significantly—cutting in half and potentially taxing more estates. But with the new law taking effect in 2026, families now have long-term stability. Starting that year:
- The exemption becomes $15 million per person
- It will be indexed for inflation
- The 40% tax rate remains unchanged
This higher threshold will reduce estate tax liability for most Americans for years to come.
What About State Taxes?
While the federal rules are generous, several states still impose estate or inheritance taxes with much lower limits. Depending on where you live, you might owe taxes even if you’re under the federal exemption.
Here are some key things to check:
- Does your state have an estate or inheritance tax?
- What is the state-level exemption limit?
- Are there special rules for family-owned businesses or farms?
State tax planning can be just as important as federal strategies, so it’s worth reviewing the laws specific to your location.
Table: Inheritance Tax-Free Limits
| Year | Individual Limit | Married Couple | Annual Gift Limit |
|---|---|---|---|
| 2025 | $13.99 million | $27.98 million | $19,000 per person |
| 2026 | $15 million* | $30 million* | Adjusts with inflation |
*2026 and beyond indexed for inflation
Conclusion
If you’re asking how much money can you inherit without paying taxes on it, the answer for 2025 is up to $13.99 million per person. This amount will rise to $15 million in 2026, offering more relief to inheritors. Still, the impact of state-level taxes and estate planning decisions can’t be ignored.
Smart estate planning, combined with awareness of federal and state limits, can help families preserve their wealth. Want to know how these changes may affect you or your loved ones? Leave a comment below and share your thoughts.