Prior to 2018, the Federal Estate Tax Exemption was $5.49 million for individuals and $10.98 million for married couples. This means that any portion of an estate that was over the exemption rate was taxed at 40%.
In 2018, the Federal Estate Tax Exemption was increased under the Tax Cut and Jobs Act. The exemption rate almost doubled to $11.7 million for individuals and $23.4 million for married couples. The increased exemption is only in effect until January 1, 2026, unless Congress passes a new law.
The Federal Estate Tax changes rather frequently. In fact, the Biden Administration has proposed a rollback to 2009 amounts which would mean increased taxes.