US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 2106

Taxable estate

(a)

Definition of taxable estate

For purposes of the tax imposed by section 2101, the value of the taxable estate of every decedent nonresident not a citizen of the United States shall be determined by deducting from the value of that part of his gross estate which at the time of his death is situated in the United States—
(1)

Expenses, losses, indebtedness, and taxes

That proportion of the deductions specified in sections 2053 and 2054 (other than the deductions described in the following sentence) which the value of such part bears to the value of his entire gross estate, wherever situated. Any deduction allowable under section 2053 in the case of a claim against the estate which was founded on a promise or agreement but was not contracted for an adequate and full consideration in money or money’s worth shall be allowable under this paragraph to the extent that it would be allowable as a deduction under paragraph (2) if such promise or agreement constituted a bequest.

(2)

Transfers for public, charitable, and religious uses

(A)

In general

The amount of all bequests, legacies, devises, or transfers (including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)—
(i)
to or for the use of the United States, any State, any political subdivision thereof, or the District of Columbia, for exclusively public purposes;
(ii)
to or for the use of any domestic corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office; or
(iii)
to a trustee or trustees, or a fraternal society, order, or association operating under the lodge system, but only if such contributions or gifts are to be used within the United States by such trustee or trustees, or by such fraternal society, order, or association, exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, such trust, fraternal society, order, or association would not be disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and such trustee or trustees, or such fraternal society, order, or association, does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office;
(B)

Powers of appointment

Property includible in the decedent’s gross estate under section 2041 (relating to powers of appointment) received by a donee described in this paragraph shall, for purposes of this paragraph, be considered a bequest of such decedent.

(C)

Death taxes payable out of bequests

If the tax imposed by section 2101, or any estate, succession, legacy, or inheritance taxes, are, either by the terms of the will, by the law of the jurisdiction under which the estate is administered, or by the law of the jurisdiction imposing the particular tax, payable in whole or in part out of the bequests, legacies, or devises otherwise deductible under this paragraph, then the amount deductible under this paragraph shall be the amount of such bequests, legacies, or devises reduced by the amount of such taxes.

(D)

Limitation on deduction

The amount of the deduction under this paragraph for any transfer shall not exceed the value of the transferred property required to be included in the gross estate.

(E)

Disallowance of deductions in certain cases

The provisions of section 2055(e) shall be applied in the determination of the amount allowable as a deduction under this paragraph.

(F)

Cross references

(i)
For option as to time for valuation for purposes of deduction under this section, see section 2032.
(ii)
For exemption of certain bequests for the benefit of the United States and for rules of construction for certain bequests, see section 2055(g).
(iii)
For treatment of gifts and bequests to or for the use of Indian tribal governments (or their subdivisions), see section 7871.
(3)

Marital deduction

The amount which would be deductible with respect to property situated in the United States at the time of the decedent’s death under the principles of section 2056.

(4)

State death taxes

The amount which bears the same ratio to the State death taxes as the value of the property, as determined for purposes of this chapter, upon which State death taxes were paid and which is included in the gross estate under section 2103 bears to the value of the total gross estate under section 2103. For purposes of this paragraph, the term “State death taxes” means the taxes described in section 2058(a).

(b)

Condition of allowance of deductions

No deduction shall be allowed under paragraphs (1) and (2) of subsection (a) in the case of a nonresident not a citizen of the United States unless the executor includes in the return required to be filed under section 6018 the value at the time of his death of that part of the gross estate of such nonresident not situated in the United States.

Aug. 16, 1954, ch. 73668A Stat. 398Pub. L. 85–866, title I, § 30(d)72 Stat. 1631Pub. L. 86–779, § 4(c)74 Stat. 1000Pub. L. 89–809, title I, § 108(e)80 Stat. 1572Pub. L. 91–172, title II, § 201(d)(2)83 Stat. 561Pub. L. 94–455, title XIII, § 1307(d)(1)(B)(iii)90 Stat. 1727Pub. L. 97–473, title II, § 202(b)(6)96 Stat. 2610Pub. L. 99–514, title XIV, § 1422(c)100 Stat. 2717Pub. L. 100–203, title X, § 10711(a)(4)101 Stat. 1330–464Pub. L. 100–647, title V, § 5033(c)102 Stat. 3672Pub. L. 101–239, title VII, § 7815(d)(3)103 Stat. 2415Pub. L. 107–16, title V, § 532(c)(8)115 Stat. 75Pub. L. 113–295, div. A, title II, § 221(a)(95)(A)(ii)128 Stat. 4051Pub. L. 115–141, div. U, title IV, § 401(a)(203)132 Stat. 1194(, ; , , ; , , ; , , ; , (4)(B), , ; , (C), title XIX, § 1902(a)(5), (12)(A), title XX, §  2001(c)(1)(F), , , 1805, 1852; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 115–1412018—Subsec. (a)(4). inserted “section” before “2058(a).”

Pub. L. 113–2952014—Subsec. (a)(4). substituted “2058(a)” for “section 2011(a)”.

Pub. L. 107–162001—Subsec. (a)(4). added par. (4).

Pub. L. 101–2391989—Subsec. (a)(3). struck out “allowed where spouse is citizen” after “deduction” in heading.

Pub. L. 100–6471988—Subsec. (a)(3). added par. (3).

Pub. L. 100–2031987—Subsec. (a)(2)(A)(ii), (iii). inserted “(or in opposition to)” after “on behalf of”.

Pub. L. 99–5141986—Subsec. (a)(2)(F)(ii). substituted “section 2055(g)” for “section 2055(f)”.

Pub. L. 97–4731983—Subsec. (a)(2)(F). substituted “(i)” and “(ii)” for “(1)” and “(2)”, respectively, and added cl. (iii).

Pub. L. 94–455, § 1902(a)(12)(A)1976—Subsec. (a)(2)(A)(i). , struck out “Territory” after “any State”.

Pub. L. 94–455, § 1307(d)(1)(B)(iii)Subsec. (a)(2)(A)(ii). , substituted “which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation” for “no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation” after “stockholder or individual”.

Pub. L. 94–455, § 1307(d)(1)(C)Subsec. (a)(2)(A)(iii). , substituted “such trust, fraternal society, order, or association would not be disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation” for “no substantial part of the activities of such trustee or trustees, or of such fraternal society, order, or association, is carrying on propaganda, or otherwise attempting, to influence legislation” after “children or animals”.

Pub. L. 94–455, § 1902(a)(5)(A)Subsec. (a)(2)(F). , substituted “Cross references” for “Other cross references” after “(F)”, in cl. (1) “purposes of deduction under this section” for “purpose of deduction under this paragraph” after “valuation for”, in cl. (2) provision for exemption of certain bequests for benefit of United States and for rules of construction for certain bequests, for provisions of cls. (2) to (11) relating to bequests to; Library of Congress, Post Office Department, Office of Naval Records and Library, National Park Service, Department of State, Department of Justice, payment of tax on bequests of United States obligations, Naval Academy, Naval Academy Museum, and National Archives Trust Fund Board, respectively.

Pub. L. 94–455, § 2001(c)(1)(F)Subsec. (a)(3). , struck out par. (3) relating to specific exemption in case of decedents nonresidents not citizens.

Pub. L. 94–455, § 1902(a)(5)(B)Subsec. (c). , struck out subsec. (c) relating to treatment of United States bonds in determining gross estate of a decedent who was not engaged in business in the United States at the time of his death.

Pub. L. 91–172, § 201(d)(4)(B)1969—Subsec. (a)(2)(A)(ii), (iii). , inserted non-participation and non-intervention in political campaigns as an additional qualification.

Pub. L. 91–172, § 201(d)(2)Subsec. (a)(2)(E). , substituted substantive provisions for simple reference to sections 503 and 681 of this title in which such substantive provisions were formerly set out.

Pub. L. 89–8091966—Subsec. (a)(3). substituted “$30,000” for “$2,000” as size of exemption in subpar. (A) and “$30,000” for “$2,000” as item (i) in formula set out in subpar. (B).

Pub. L. 86–7791960—Subsec. (a)(3). designated existing provisions as subpar. (A) and added subpar. (B).

Pub. L. 85–8661958—Subsec. (a)(2)(E). substituted “503” for “504”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–295section 221(b) of Pub. L. 113–295section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .

Effective Date of 2001 Amendment

Pub. L. 107–16section 532(d) of Pub. L. 107–16section 2012 of this titleAmendment by applicable to estates of decedents dying, and generation-skipping transfers, after , see , set out as a note under .

Effective Date of 1989 Amendment

Pub. L. 101–239Pub. L. 100–647section 7817 of Pub. L. 101–239section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, , to which such amendment relates, see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647section 5033(d)(1) of Pub. L. 100–647section 2056 of this titleAmendment by applicable to estates of decedents dying after , see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–203section 10711(c) of Pub. L. 100–203section 170 of this titleAmendment by applicable with respect to activities after , see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–514section 1422(e) of Pub. L. 99–514section 2055 of this titleAmendment by applicable to transfers and contributions made after , see , set out as a note under .

Effective Date of 1983 Amendment

Pub. L. 97–473section 204(3) of Pub. L. 97–473section 7871 of this titleFor effective date of amendment by , see , set out as an Effective Date note under .

Effective Date of 1976 Amendment

Pub. L. 94–455section 1902(c)(1) of Pub. L. 94–455section 2012 of this titleAmendment by section 1902(a)(5), (12)(A) of applicable in the case of estates of decedents dying after , see , set out as a note under .

section 2001(c)(1)(F) of Pub. L. 94–455section 2001(d)(1) of Pub. L. 94–455section 2001 of this titleAmendment by applicable to estates of decedents dying after , see , set out as a note under .

Effective Date of 1969 Amendment

section 201(d)(2) of Pub. L. 91–172section 201(g)(4) of Pub. L. 91–172section 170 of this titleAmendment by applicable in the case of decedents dying after , with specified exceptions, see , set out as a note under .

section 201(d)(4)(B) of Pub. L. 91–172section 201(g)(4) of Pub. L. 91–172section 170 of this titleAmendment by applicable to gifts and transfers made after , see , set out as a note under .

Effective Date of 1966 Amendment

Pub. L. 89–809section 108(i) of Pub. L. 89–809section 2101 of this titleAmendment by applicable with respect to estates of decedents dying after , see , set out as a note under .

Effective Date of 1960 Amendment

Pub. L. 86–779, § 4(e)(2)74 Stat. 1000

section 2209 of this title“The amendments made by subsections (b) and (c) [enacting and amending this section] shall apply with respect to estates of decedents dying after the date of the enactment of this Act [].”
, , , provided that:

Section 5033 of Pub. L. 100–647Application of Amendments by to Estates of, or Gifts by, Noncitizen and Nonresident Individuals

section 5033 of Pub. L. 100–647section 7815(d)(14) of Pub. L. 101–239section 2056 of this titleFor provisions directing that in the case of the estate of, or gift by, an individual who was not a citizen or resident of the United States but was a resident of a foreign country with which the United States has a tax treaty with respect to estate, inheritance, or gift taxes, the amendments made by shall not apply to the extent such amendments would be inconsistent with the provisions of such treaty relating to estate, inheritance, or gift tax marital deductions, but that in the case of the estate of an individual dying before the date 3 years after , or a gift by an individual before the date 3 years after , the requirement of the preceding provision that the individual not be a citizen or resident of the United States shall not apply, see , set out as a note under .