# Widow(er)'s Tax Exemption: Key Federal and State Rules Explained

## What Is a Widow(er)'s Exemption?

A widow(er)'s tax exemption is a measure that provides financial relief following a spouse's death. Per federal law, widow(er)s receive tax relief from estate and inheritance windfalls. State laws vary by jurisdiction but in general permit a tax reduction for a specific period of time. The tax exemption applies only to legally married spouses. Those in domestic partnerships or civil unions are ineligible for the exemption.

### Key Takeaways

*   A widow(er)'s exemption provides tax relief to surviving spouses after their partner's death.
*   State exemptions often include reduced property taxes for a set period for the surviving spouse.
*   Federal benefits may allow widowed taxpayers to file joint returns for two years after their spouse's death.
*   Eligible surviving spouses can receive a stepped-up basis on inherited property, reducing potential future tax liabilities.
*   Same-sex couples must be legally married to qualify for widow(er)'s exemptions and benefits.

![A widow stands with their arms around two young children next to a casket at a cemetery.](https://www.investopedia.com/thmb/2tPiTpZbN_U-1kDxhdOpBSPagMM=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/WidowsExemptionDefinitionStateandFederalTaxRulesGettyImages-104302941-8741d93e2fa7496db7793afd151cbd66.jpg)

*— RubberBall Productions / Getty Images*

## Comprehensive Guide to Widow(er)'s Tax Exemptions

The surviving spouse exemption refers to a tax deduction available to a recently widowed spouse. This benefit is available to surviving spouses of any gender.

### Exploring State-Level Widow(er)'s Tax Exemptions

State tax relief often involves a reduction in property tax for the surviving spouse, though it varies by state.

A common form of a state widow(er)’s exemption is the type offered in Florida. The state allows for a $5,000 reduction in the tax basis on which property taxes are based.

This is not a $5,000 [tax credit](https://www.investopedia.com/terms/t/taxcredit.asp); it means that the taxable value of a property is reduced by $5,000 for a surviving spouse. This benefit is available in perpetuity but is waived if the surviving spouse remarries.

### Navigating Federal Tax Relief for Widows and Widowers

Federal tax benefits for a surviving spouse come in various forms. A recently widowed taxpayer may be allowed to take advantage of the benefits of filing a [joint return](https://www.investopedia.com/terms/j/jointreturn.asp) for two years following the year of their spouse’s death.

The surviving spouse is also eligible for a [stepped-up basis](https://www.investopedia.com/terms/s/stepupinbasis.asp) on any property that they inherit. This means that the cost basis for that property, a significant factor in determining taxes when the property is sold, is adjusted to the date of the spouse’s death.

If the spouses owned a home jointly, the basis of the deceased spouse’s share is the home's fair market value on the date of death. The basis of the surviving spouse’s interest, except in community property states, remains the same and the new basis is the sum of the two amounts.

In community property states, the entire property receives the new stepped-up basis.

If the surviving spouse sells the home within two years of their spouse’s death and certain conditions are met, including two-year ownership and principal-residence requirements, then the first $500,000 of profit from selling the home is considered tax-free by the IRS.

> **Important**
>
> These are just a few of the major forms of tax relief available to a widowed spouse. Other smaller benefits involve inherited individual retirement accounts (IRAs) and life insurance policies.

## Tax Implications for Same-Sex Widows and Widowers

The Defense of Marriage Act (DOMA) prevented same-sex couples, with marriages recognized in their states but not by the federal government, from receiving benefits like those received by widows and widowers because, at the time of DOMA, same-sex married couples were not recognized by the federal government.

When Section 3 of DOMA was struck down in June 2013, same-sex couples' marriages were recognized as legal by the federal government and, in turn, the Internal Revenue Service (IRS).

Since Section 3 was repealed, the IRS and the Treasury allow legally wed same-sex couples to receive married couples' tax benefits.

However, couples must be legally married, not simply long-term partners, for [widows and widowers](https://www.investopedia.com/terms/q/qualifying-widow.asp) to take advantage of key tax benefits available to surviving spouses.

Any couple (LGBT+ or not) in a long-term partnership but not a marriage cannot benefit from the tax breaks and benefits offered to legally married couples.

Even couples in registered domestic partnerships, civil unions, or similar formalized relationships recognized by their state still will not be recognized for tax purposes by the IRS.

## Key Considerations for Estate Taxes for Surviving Spouses

A key tax issue for surviving family members has sparked political debate. The federal [estate tax](https://www.investopedia.com/terms/e/estatetax.asp) applies to families when a wealthy individual passes away and leaves a significant estate to their survivors.

The estate tax rule has traditionally allowed for an exempt amount and has undergone revisions by Congress several times.

The estate and gift tax exemption was raised to $13.61 million for 2024. This is not strictly a widow(er)’s exemption, as all assets passed to a spouse are by law exempt from federal taxation. An estate's exemption and subsequent taxation apply to assets passed on to non-spouse family members.

## Do I Qualify for Tax Benefits If My Live-In Partner Dies?

If you are legally married to your partner, then you will qualify for tax benefits as a surviving spouse. If you are only living together, even if recognized by the state, you will not qualify.

## What Is a Widow(er)'s Exemption on Taxes?

A widow's or widower's exemption is a tax deduction offered after your spouse dies.

## What Benefits From the IRS Do I Get If I Am a Widow or Widower?

If your spouse dies, besides being eligible for benefits from the Social Security Administration, you may qualify for a widow(er)'s tax exemption in the form of a deduction, and you may be eligible to file joint taxes for two years following the year of a spouse's death.

## Do I Have To Pay Taxes on Social Security Survivor's Benefits?

Yes. If you receive any form of survivor benefits from the Social Security Administration, a portion may be taxed as income.

## The Bottom Line

The widow(er)’s exemption is a means to reduce tax burdens for surviving spouses, both at the state and federal levels. State tax relief often involves reduced property taxes specifically for widowed spouses. At the federal level, relief includes benefits like joint tax filing (within the two year window following a spouse's death) and potential estate tax reductions. A legal marriage is a requirement for claiming these exemptions. These benefits are not extended to domestic partnerships or civil unions. Following the repeal of DOMA, same-sex married couples are entitled to the same federal tax benefits as opposite-sex married couples.

> **Article Sources**
>
> 1.  Florida Legislature. “[Florida Statutes: 196.202 Property of Widows, Widowers, Blind Persons, and Persons Totally and Permanently Disabled](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0100-0199/0196/Sections/0196.202.html).”
>     
> 2.  Volusia County Property Appraiser. “[$5000 Widow/Widowers Exemption](https://vcpa.vcgov.org/exemption/widow).”
>     
> 3.  Internal Revenue Service. "[Publication 501: Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/pub/irs-pdf/p501.pdf)." Page 9.
>     
> 4.  Internal Revenue Service. “[Publication 559: Survivors, Executors, and Administrators](https://www.irs.gov/pub/irs-pdf/p559.pdf).” Page 20.
>     
> 5.  Internal Revenue Service. “[Publication 523: Selling Your Home](https://www.irs.gov/pub/irs-pdf/p523.pdf).” Pages 10-11.
>     
> 6.  Internal Revenue Service. "[Publication 523: Selling Your Home](https://www.irs.gov/pub/irs-pdf/p523.pdf)." Pages 3-4.
>     
> 7.  Internal Revenue Service. "[Publication 559: Survivors, Executors, and Administrators](https://www.irs.gov/pub/irs-pdf/p559.pdf)." Pages 16, 18.
>     
> 8.  Justia. “[United States v. Windsor, 570 U.S. 744 (2013)](https://supreme.justia.com/cases/federal/us/570/744/).”
>     
> 9.  Internal Revenue Service. “[Rev. Rul. 2013-17](https://www.irs.gov/pub/irs-drop/rr-13-17.pdf).” Pages 3-4.
>     
> 10.  Internal Revenue Service. “[Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized for Federal Tax Purposes](https://www.irs.gov/pub/irs-news/IR-13-072.pdf).”
>      
> 11.  Internal Revenue Service. “[Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions](https://www.irs.gov/newsroom/answers-to-frequently-asked-questions-for-registered-domestic-partners-and-individuals-in-civil-unions).”
>      
> 12.  Internal Revenue Service. ["Estate and Gift Tax FAQs](https://www.irs.gov/newsroom/estate-and-gift-tax-faqs)."
>      
> 13.  Internal Revenue Service. "[Estate Tax](https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax)."
>      
> 14.  Internal Revenue Service. “[Frequently Asked Questions on Estate Taxes](https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes).” Expand “What deductions are available to reduce the estate tax?”
>      
> 15.  Internal Revenue Service. “[IRS Reminds Taxpayers Their Social Security Benefits May Be Taxable](https://www.irs.gov/newsroom/irs-reminds-taxpayers-their-social-security-benefits-may-be-taxable).”