There is a federal estate tax that applies to those estates that are worth a significant amount. The exemption from the federal estate tax has increased continuously since 2002. Prior to 2002, the exemption from the federal estate tax was $675,000. In 2002 the exemption increased to $1,000,000. Since 2004, the exemption from the federal estate tax has been greater than $1,000,000.
In 2020, the exemption from the federal estate tax was $11,580,000. Beginning January 1, 2021, the exemption from the federal estate tax is now $11,700,000.
The exemption for the federal estate tax has increased for a married couple. In 2020, the exemption for a married couple was $23,160,000. Effective January 1, 2021, the exemption from the federal estate tax for a married couple is $23,400,000.
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