The 2026 federal estate-tax cliff did not happen. Public Law 119-21 set the federal basic exclusion at $15,000,000. For many executives, the live tax is now state estate tax — and those statutes do not copy the federal number. This briefing quotes official sources fetched August 20, 2026. It is educational only. EstatePlanWise is not a law firm and does not provide legal advice.
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Federal: $15,000,000 basic exclusion
The IRS states that the Working Families Tax Cuts bill (Pub. L. 119-21) amends IRC § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026. The annual exclusion is $19,000 per donee for 2025 and 2026. Source: IRS What’s New — Estate and gift tax.
New York: $7,350,000 basic exclusion (2026)
The New York State Department of Taxation and Finance lists the basic exclusion amount for dates of death on or after January 1, 2026 through December 31, 2026 as $7,350,000. Source: tax.ny.gov estate tax page.
That official index page does not document a “105% haircut.” The Form ET-706-I booklet fetched August 20, 2026 is still the 2025 instructions. It tells preparers: if the taxable estate is not more than $7,160,000, enter the line 2 tax as the applicable credit; if the taxable estate is more than $7,160,000 but not more than $7,518,000, complete the credit worksheet; those dollars are the 2025 ($7,160,000) version. Confirm the 2026 credit bands on the 2026 ET-706-I. Do not invent a 2026 cliff dollar. Source: Form ET-706-I (current_forms path).
Massachusetts: $2,000,000 filing threshold and $99,600 credit
The Massachusetts Estate Tax Guide states that for decedents dying on or after January 1, 2023, a Massachusetts estate tax return is required if the gross estate plus adjusted taxable gifts exceeds $2,000,000, and that estates are allowed a credit of up to $99,600 (M.G.L. c. 65C, § 2A(f)).
Mass.gov also states that computation steps changed for deaths on or after August 1, 2025 (including how out-of-state property and related items enter the computation). We do not invent the new math here. Use the current Form M-706 instructions for dates of death on or after August 1, 2025.
Illinois: $4,000,000 exclusion — a threshold, not a credit-style wipeout
35 ILCS 405/2 defines the Illinois “state tax credit” computation by recognizing an exclusion amount of only $4,000,000 for persons dying on or after January 1, 2013. That figure is a statutory exclusion in the tax computation — not a dollar-for-dollar credit that zeroes tax the way Massachusetts’s $99,600 credit can. The Illinois Attorney General’s Form 700 is the return used to compute the tax.
The older ILGA fulltext.asp?DocName=003504050K2 path is unreliable. Use the current ILCS document URL: 35 ILCS 405/2 (ILGA documents).
Washington: $3,076,000 then $3,000,000 in 2026
The Washington Department of Revenue states that the filing threshold and exclusion amount is $3,076,000 for decedents dying between January 1, 2026 and June 30, 2026, and $3,000,000 for decedents dying on or after July 1, 2026. DOR notes the $3,000,000 figure is not set to increase going forward because a CPI provision in the statute expired. Source: dor.wa.gov estate tax.
New Jersey: no estate tax on or after January 1, 2018; inheritance tax remains
The New Jersey Division of Taxation states that New Jersey estate tax is no longer imposed for individuals who died on or after January 1, 2018. The New Jersey transfer inheritance tax remains in effect. Source: NJ Division of Taxation — Inheritance and Estate Tax.
Do not assume state portability
Federal deceased-spousal unused exclusion (DSUE) is a federal election. New York ET-706-I and Illinois Attorney General materials treat the Illinois/New York computations as state-specific; federal DSUE does not automatically apply at the state level. For Massachusetts and Washington, do not assume a federal-style portability election exists unless current state instructions say so. Confirm with counsel and the current state return booklet.
Next steps
Executives who want a first-pass fit check can take the EstatePlanWise quiz (no email required to see your recommendation; email is required to unlock the checklist and DIY provider links). Then talk to a trusts-and-estates attorney. We do not match attorneys and we do not sell DIY kits on this page. The American College of Trust and Estate Counsel maintains a public directory: ACTEC Find a Lawyer (not an affiliate). For irrevocable transfer design, continue with SLATs for Executives.
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