Tennessee estate tax, inheritance tax & probate costs

What the Tennessee Estate Data Reveals

Tennessee imposes no state estate tax, so federal law under IRC § 2001 is the only estate-level levy that applies. With a permanent federal exemption of $15M per decedent from 2026, after the One Big Beautiful Bill Act (July 2025) repealed the scheduled TCJA sunset, the vast majority of Tennessee estates clear probate without owing estate tax at any level. Tennessee's community property rules mean roughly half of a couple's marital assets already belong to the surviving spouse outright, which simplifies transfer even without a state tax to plan around. There is no separate inheritance tax, so beneficiaries receive their share without a second state-level deduction at distribution.

IRS Statistics of Income data show 114 federal estate tax returns filed by Tennessee residents in the most recent available year (filing year 2023), reporting $5.22 billion in combined gross estate value. Net federal estate tax paid totaled $0.35 billion that year. Across the multi-year IRS SOI series above, Tennessee averages roughly 113 taxable filings per year, with an effective federal rate on reported gross estates of about 8.3%.

Probate itself typically runs 9–18 months in Tennessee (roughly 14 months on average), with court filing fees of $175–$500. Attorney compensation is set by statute at approximately 5% of the estate, which is a material fixed cost even for uncontested estates. Tennessee does offer a simplified small-estate track for estates under $50,000, which most families use to bypass full formal probate. Because Tennessee has not adopted the UPC, probate practice can vary materially by county and judicial district. Tennessee's community property framework also means marital assets generally pass with a 50/50 baseline split, which affects both tax basis step-up and the size of the taxable estate.