US federal estate tax: $15M threshold in 2026

The two numbers, and which one is yours

U.S. federal estate tax planning runs on two thresholds that get conflated constantly. The 15 million USD basic exclusion belongs to U.S. citizens and U.S.-domiciled residents: their worldwide estates pass free of federal estate tax up to that amount in 2026, with the unused portion portable to a surviving spouse by election on Form 706. The 60,000 USD figure belongs to everyone else: a non-resident alien's estate must file Form 706-NA when U.S.-situated assets exceed 60,000 USD, and without treaty relief the tax reaches those U.S. assets above that tiny allowance at rates climbing to 40 percent.

Verified fact: the IRS filing-threshold table lists the basic exclusion at 13,990,000 USD for deaths in 2025 and 15,000,000 USD for deaths in 2026, with the 40 percent top rate above; portability to the surviving spouse is elected on a timely filed Form 706. Source: IRS, Estate tax page (filing threshold by year of death), irs.gov, consulted June 10, 2026.

Verified fact: a nonresident not a citizen of the United States must file Form 706-NA when the date-of-death value of U.S.-situated assets exceeds 60,000 USD. Source: IRS, estate tax returns for nonresidents pages, irs.gov, consulted June 9, 2026.

The Canadian bridge: the treaty's pro-rated credit

A Canadian resident is normally a non-resident alien for U.S. estate tax, so the 60,000 USD threshold frames the file. The Canada-US tax treaty then does what the Code does not: Article XXIX B grants a Canadian's estate a unified credit equal to the proportion of the full U.S. exclusion that the U.S.-situated estate bears to the worldwide estate. A Canadian whose Florida condo and U.S. accounts represent 10 percent of a worldwide estate gets, broadly, 10 percent of 15 million USD of exclusion in 2026, claimed on a treaty-based Form 706-NA filing. The marital credit can double relief where assets pass to a surviving spouse. The mechanics, elections, and the worked arithmetic live in the dedicated guides: the 60,000 USD threshold guide, the Article XXIX B guide, and the Form 706-NA guide.

Who taxes what at death

A worked example: a 2026 estate, treaty arithmetic

Robert of Oakville dies in February 2026 with a worldwide estate of 5,000,000 CAD (about 3,700,000 USD at an illustrative 1.35) including a Sarasota condo at 600,000 USD and 50,000 USD in a U.S. account. U.S.-situs assets: 650,000 USD, far above 60,000, so Form 706-NA is due. Treaty credit: U.S. assets are roughly 17.6 percent of the worldwide estate, so the estate claims about 17.6 percent of the 2026 unified credit, sheltering approximately 2,640,000 USD of exclusion equivalent, comfortably above the 650,000 USD of U.S. assets. Federal estate tax payable: zero, but only because the 706-NA was filed with the treaty election and the worldwide-estate disclosure. Typical range: cross-border estate filings of this profile commonly cost 5,000 to 15,000 USD in professional fees, June 2026 observation; the form, not the tax, is the predictable expense at this estate size.

Opinion: below the 15 million ceiling, the real risk for most Canadian families is not the tax but the missed filing: the 706-NA with treaty election is what converts a frightening gross exposure into zero, and it has a 9-month clock that grieving executors discover late. Put the obligation in the estate binder now.

Common mistakes

• Reading the 15 million as your threshold. A Canadian non-resident's filing trigger is 60,000 USD of U.S. assets; the big number only reaches you pro-rata through the treaty.
• Skipping the 706-NA because no tax is due. The treaty credit is claimed on the return; no return, no relief.
• Forgetting the worldwide-estate disclosure. The pro-rata credit requires showing the worldwide numbers; estates unwilling to disclose lose the math.
• Ignoring the Canadian side. The deemed disposition taxes the same condo's gain in Canada; coordination, not either-or, is the plan.
• Confusing the 2025 and 2026 numbers. 13,990,000 USD applies to 2025 deaths; 15,000,000 USD to 2026. The year of death picks the figure.

The Canadian owner's checklist

• List your U.S.-situs assets and their value; above 60,000 USD, a 706-NA will be due at death.
• Keep a current worldwide-estate snapshot with the Florida file for the future pro-rata calculation.
• Tell your executor about the 9-month 706-NA clock and where the numbers live.
• Re-run the arithmetic after major purchases, sales, or market moves, and at any law change.
• For estates near or above the exposure line, price insurance and structures with cross-border counsel.

Frequently asked questions

Does the 15 million USD exclusion apply to me as a Canadian?

Not directly: it applies to U.S. citizens and domiciliaries. Through Article XXIX B you receive the proportion of it matching your U.S. share of the worldwide estate, claimed on the 706-NA.

What exactly counts as U.S.-situated?

U.S. real estate first, the Florida property included, plus U.S.-incorporated shares and certain other U.S. assets; the classification list is the 60,000 USD guide's subject.

Is there any Florida estate tax on top?

No: the state constitution forbids it. The federal tax and the Canadian deemed disposition are the whole game.

When is the 706-NA due?

Nine months after death, with extensions available on request; the treaty positions ride on the return.

What changes if the exclusion law changes again?

The year-of-death table governs; the pro-rata mechanics stay the same. This page tracks the table at each review.