Alaska Estate
Tax Calculator

Alaska does not impose a state-level estate tax or inheritance tax. Estates of Alaska residents are subject only to the federal estate tax, which currently exempts the first **$15 million** per individual (2025).

Alaska's lack of a state estate tax, combined with its lack of state income tax, makes it one of the most tax-favorable jurisdictions in the nation for estate planning.

Alaska's trust-friendly laws make it a leading jurisdiction for domestic asset protection trusts (DAPTs) and dynasty trusts. The absence of a state estate tax means assets held in Alaska-sited trusts avoid both state income tax and state estate tax, regardless of where the beneficiaries reside.

With no state estate tax, only the federal tax applies. The federal exemption of **$15 million** is portable between spouses, allowing married couples to shelter up to $30 million.

The federal top rate is **40%** on amounts exceeding the exemption.

Alaska's community property trust option (Alaska Stat. 34.77) allows married couples from common-law states to opt into community property treatment for specified assets.

This can provide a full basis step-up for both halves of community property at the first death, a significant income tax benefit that complements the absence of state estate tax.

Alaska's dynasty trust statute (AS 34.27.051) permits trusts of unlimited duration, making it one of the premier jurisdictions for multi-generational wealth transfer. Combined with no state estate tax and no state income tax, an Alaska dynasty trust can grow tax-free at the state level indefinitely.

For Alaska Native shareholders, the estate may include Alaska Native Claims Settlement Act (ANCSA) shares, which have unique restrictions on transfer and valuation. Understand ANCSA share restrictions and their impact on estate tax valuation, including potential discounts for lack of marketability and transfer restrictions.

Though Alaska imposes no state estate tax, federal exposure may still apply. Use this calculator to estimate federal estate tax liability and evaluate whether Alaska trust strategies can reduce the taxable estate.

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Because Alaska does not impose a state estate tax, the federal estate tax is the only transfer tax layer. The current federal exemption of $15 million per individual (2025) shelters the vast majority of estates.

However, estates that exceed this threshold face a top marginal rate of 40%, making federal planning essential for high-net-worth Alaska residents.

The Tax Cuts and Jobs Act (TCJA) doubled the federal exemption effective 2018, but this increase is scheduled to sunset after 2025. If Congress does not act, the exemption will revert to approximately $7 million (adjusted for inflation).

For Alaska residents with estates between $7 million and $15 million, this sunset creates a planning window: transfers made now under the higher exemption will not be clawed back, even if the exemption later decreases.

The absence of a state estate tax in Alaska simplifies the analysis — there is no gap between state and federal exemptions to navigate, no separate state return to file, and no risk of double taxation. However, this also means there is no state-level deduction to offset federal liability.

Federal planning tools — marital deductions, charitable deductions, and the unified credit — carry the full weight of estate tax mitigation. Use the Alaska estate tax calculator to model current and post-sunset scenarios, and review the Alaska probate cost calculator to understand full settlement costs.

Federal portability allows a surviving spouse to inherit the deceased spouse's unused estate tax exclusion (DSUE), effectively doubling the available federal exemption to $30 million for married couples. Electing portability requires filing Form 706 for the first-to-die spouse, even if no federal estate tax is owed — a step that is frequently overlooked when no tax appears to be due.

Because Alaska does not impose a state estate tax, there is no state-level portability concern. The federal election is the only one that matters, and it applies automatically to the surviving spouse's estate once made.

This is simpler than in estate-tax states, where the lack of state portability forces the use of bypass trusts to preserve both exemptions.

Despite this simplicity, portability has limitations. The DSUE amount is not indexed for inflation — it locks in at the value of the first spouse's unused exemption at the date of death.

If the surviving spouse remarries and the new spouse dies, the DSUE from the first spouse is lost. For Alaska families with significant wealth, bypass trusts may still be preferable to portability because they provide asset protection, generation-skipping benefits, and inflation-adjusted growth outside the surviving spouse's taxable estate.

Use the executor fee calculator and probate cost calculator to understand the full administration picture when comparing trust structures.

Without a state estate tax, Alaska residents focus planning efforts on the federal layer. The current $15 million exemption provides substantial shelter, but the scheduled TCJA sunset makes it prudent to accelerate planning.

Irrevocable trusts — including ILITs, SLATs, and QPRTs — remove assets from the taxable estate permanently. Once transferred, these assets and their future appreciation are outside the federal estate, regardless of future exemption changes.

Annual exclusion gifts of $19,000 per recipient (2025) remain the simplest estate reduction tool. Married couples can jointly gift $38,000 per recipient through gift-splitting.

Over a decade, a family gifting to four beneficiaries annually removes $1.44 million from the estate with no gift tax return required. Charitable deductions — whether through outright bequests, donor-advised funds, or charitable trusts — further reduce the taxable estate while supporting philanthropic goals.

GRATs and GRUTs (grantor retained unitrusts) transfer appreciation to beneficiaries at minimal transfer tax cost. For Alaska residents holding concentrated stock positions or rapidly appreciating assets, these vehicles are particularly efficient.

Family limited partnerships and LLCs may provide valuation discounts for gift and estate tax purposes, though the IRS scrutinizes these structures closely. Professional valuation and proper documentation are essential.

Model your federal exposure with the Alaska estate tax calculator, or find an estate planning attorney in Alaska for personalized guidance.