Updated October 5, 2026. Quick answer: No. Tennessee has no estate tax for a person who dies in 2026. Tennessee’s tax on estates at death was called the inheritance tax, and the Department of Revenue says “The inheritance tax is no longer imposed after December 31, 2015”. The federal exclusion is $15,000,000 for 2026.
Naming a beneficiary on a brokerage account or a vehicle title is covered here: transfer-on-death registration in Tennessee.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Tennessee have an inheritance tax?.
Tennessee estate tax at a glance
| Item | What the documents say |
|---|---|
| State estate tax | None |
| Why | Public Chapter 1057 (2012) phased out Tennessee’s death tax (which the Department calls the inheritance tax) for deaths after December 31, 2015 |
| State estate tax return | The Department says do not file for dates of death in 2016 or after |
| State inheritance tax | No: the Department calls the former death tax an inheritance tax, and it ended after December 31, 2015 |
| Federal estate tax basic exclusion amount, 2026 | $15,000,000 |
| Source | Tennessee Department of Revenue; IRS Revenue Procedure 2025-32 |
Why Tennessee has no estate tax
The Department’s Notice 12-13 explains the phase-out under Public Chapter 1057 (2012), TCA section 67-8-301 and the sections after it: the exemption rose each year through 2015, and the notice says no inheritance tax “will apply to estates of decedents dying in 2016 or after”. The Department’s inheritance tax page says the tax “is paid out of the estate by the executor”, which is why it works like an estate tax.
Does Tennessee have an inheritance tax?
Tennessee’s statutes and the Department use the name inheritance tax for that tax. The Department’s instruction is “DO NOT file for decedents with dates of death in 2016” or after.
CMG’s inheritance tax by state page covers the beneficiary side.
What applies to a Tennessee estate instead
Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”.
An estate of $3,000,000 in Tennessee owes $0 of state estate tax, and $3,000,000 is below the federal $15,000,000.
Probate: Tennessee probate cost. Retirement accounts: how Tennessee taxes 401(k) and IRA withdrawals.
What the documents do not say
- Tennessee’s documents call its former death tax an inheritance tax and never use the words estate tax for it; this page treats it as the state’s estate-level tax because the Department says it was paid out of the estate.
Common mistakes
- Filing a Tennessee inheritance tax return for a death in 2016 or later; the Department says not to.
- Assuming the state answer settles the federal one, or the answer for property held in another state.
Related: estate tax by state, inheritance tax by state, and probate cost by state.
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Answer againSources
- Inheritance Tax: https://www.tn.gov/revenue/taxes/inheritance-tax.html
- Inheritance Tax Changes, Notice #12-13: https://www.tn.gov/content/dam/tn/revenue/documents/notices/inheritance/12-13.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.