Does Texas have an estate tax?

No Texas estate or inheritance tax.

Texas does not charge an estate tax or an inheritance tax, and it has no state income tax. Heirs generally do not owe Texas tax on what they inherit. That is a significant advantage compared with some states.

The federal estate tax.

The federal estate tax applies only to estates above a very high exemption. For 2026, the federal basic exclusion amount is $15 million per person, so a married couple can shield up to $30 million with proper planning. The tax rate above the exemption is 40 percent. The vast majority of Texas families will never owe it, but a family business, ranch, large real estate holdings, or significant life insurance can put a larger estate within range.

Basis step-up: the tax that matters more.

For most families, capital gains tax matters more than estate tax. Assets inherited at death generally receive a new tax basis equal to their value at death, which can erase gain that built up during life. In Texas community property, both halves can receive this step-up when the first spouse dies. Giving away appreciated property during life, by contrast, generally passes along your original basis. Gifting decisions therefore should be made carefully.

Gifts and retirement accounts.

• You can give up to the annual exclusion amount per person each year (currently $19,000) without filing a gift tax return
• Gifts above that amount reduce your lifetime exemption but usually do not create tax due
• Most non-spouse beneficiaries who inherit retirement accounts must empty them within 10 years, which can create income tax
• Life insurance owned by you counts in your estate; an irrevocable life insurance trust can keep it out — see our life insurance trust page

Even without estate tax, a plan matters: a will or trust controls who gets what, avoids family disputes, and reduces the time and cost of probate. See the estate planning checklist.