The Lange Firm
By Evan Lange
October 27th, 2025
Here’s a question we get all the time: “If I die in Texas, will my family have to pay estate taxes or inheritance taxes?” The short answer? Not in Texas.
But don’t let that lull you into thinking taxes are off the table entirely. There are still a few things every Texan should understand—especially if your estate includes significant property, retirement accounts, or out-of-state assets.
Let’s break down what Texas does and doesn’t tax, and how smart planning can protect your legacy.
Texas does not have a state estate tax. That means when someone dies in Texas, their estate isn’t taxed by the state—no matter how big or small. This is great news for families trying to preserve wealth or keep real estate in the family. But that doesn’t mean your estate is 100% off the hook…
Texas doesn’t tax your estate or your inheritance—but the federal government might. And if you own property in other states, you may still be affected by their rules.
While Texas skips the estate tax, the federal government does not. As of 2025, the federal estate tax exemption is:
- $13.61 million per individual
- $27.22 million per married couple
If your estate is worth more than this when you pass away, the amount above the exemption could be taxed at a rate of up to 40%. If you’re nowhere near that threshold, you’re probably safe. But if you’re close—or expect to be—it’s time to start planning.
