The United States basic exclusion amount rises to $15,000,000 for estates of decedents dying in 2026, from $13,990,000 in 2025, per the Internal Revenue Service. Set that beside the United Kingdom’s £325,000 nil-rate band and the gap between two English-speaking developed economies is roughly thirty-five to one.
The 2026 numbers
| Measure | 2026 |
|---|---|
| Basic exclusion amount | $15,000,000 |
| 2025 comparison | $13,990,000 |
| Estate tax rate above the exclusion | 40 percent |
| Annual gift exclusion per donee | $19,000 |
| Spousal transfers | Exempt, with portability of unused exclusion |
Same rate, different reach
Both countries charge 40 percent. Only the threshold differs, and it differs enough to make the two regimes behave nothing alike. A 40 percent rate that begins at $15 million touches a narrow band of estates. A 40 percent rate that begins at £325,000, frozen there until 2031, reaches ordinary property owners in expensive cities.
This is the distinction worth holding on to whenever estate tax is discussed internationally. The headline rate is nearly meaningless on its own. The threshold, and whether it moves with asset prices, decides who actually pays.
A 40 percent rate that starts at $15 million and a 40 percent rate that starts at £325,000 are not the same tax.
Rich & Richer
The annual exclusion is the underrated instrument
At $19,000 per donee per year, with no limit on the number of donees and no reduction of the lifetime exclusion, systematic annual gifting moves meaningful value over time without touching the lifetime amount. It is unglamorous and it compounds. The IRS sets out the mechanics in its gift tax FAQs.
Where the exposure sits for internationally mobile families
US estate tax reaches US-situated assets held by non-residents at a far lower threshold than the domestic exclusion, which regularly surprises families holding American real estate or securities through the wrong wrapper. The Congressional Research Service overview of the estate and gift tax is a good starting point, and the structuring question belongs with the wider estate plan rather than in isolation.
Frequently asked questions
What is the US estate tax exemption for 2026?
The basic exclusion amount is $15,000,000 for estates of decedents dying in 2026, up from $13,990,000 in 2025.
What is the estate tax rate?
40 percent on the taxable estate above the exclusion.
What is the annual gift exclusion?
$19,000 per donee for 2026. It is separate from the lifetime exclusion.
Can a surviving spouse use the unused exemption?
Yes. Transfers between spouses are exempt and unused exclusion can be carried to a surviving spouse, a mechanism known as portability.