The short answer
Arizona does not impose a state estate tax on estates of people who passed away after 2004.
Federal estate tax is separate. For 2026, the basic exclusion is $15,000,000.
Federal exclusion by year
Use the year the person passed away, not the year the probate case opened or the return is prepared.
| Year of passing | Basic exclusion |
|---|---|
| 2025 | $13,990,000 |
| 2026 | $15,000,000 |
This is a filing threshold, not a promise that an estate below it has no tax work and not a tax rate applied to the whole estate.
What enters the filing test
The IRS requires Form 706 when the gross estate, increased by adjusted taxable gifts and any specific gift-tax exemption, exceeds the threshold for the year of passing. The gross estate can include property that never enters probate, so the probate inventory alone is not the test.
- Count broadlyReal estate, financial accounts, business interests, insurance included in the gross estate, and certain trust interests may matter.
- Add lifetime giftsAdjusted taxable gifts can push the filing calculation above the basic exclusion even when assets held at passing are lower.
- Deductions affect taxDebts, administration expenses, charitable transfers, and qualifying transfers to a spouse may affect the taxable estate.
- Arizona income tax is separateAn estate with income during administration may still have an Arizona fiduciary income-tax filing even though Arizona has no estate tax.
Form 706 timing
Form 706 is generally due 9 months after the person passed away. The IRS instructions provide an automatic 6-month extension to file when Form 4768 is submitted, but an extension to file does not automatically extend the time to pay.
A timely return can also elect portability of a deceased spouse’s unused exclusion. That election can matter even when the estate is below the filing threshold and owes no estate tax.
Read the Form 706 instructionsFrequently asked questions
Does Arizona have an estate tax?
No. The Arizona Department of Revenue says the state estate tax was repealed for people who passed away after 2004.
What is the federal estate-tax exclusion?
For a person who passes away in 2026, the federal basic exclusion amount is $15,000,000. The filing test also accounts for adjusted taxable gifts and any specific gift-tax exemption.
When is Form 706 due?
Form 706 is generally due 9 months after the person passed away. The IRS instructions describe an automatic 6-month filing extension requested on Form 4768.
Why file if no federal estate tax is due?
A timely Form 706 can elect portability of a deceased spouse’s unused exclusion amount to the surviving spouse. Portability is a separate planning question from whether the estate owes tax now.