Estate tax, also known as the death tax, is a federal tax imposed on all assets of a business owner’s estate upon their death before those assets are passed to heirs of the business. This means that in the event of a death in the family, in order for the small business owner’s heirs to inherit the family business, an estate tax must be paid on the estate’s assets that have already been taxed during the life of the original owner. These taxes are often hard to plan for and debilitating for multi-generation family businesses.

Greg Niewold, NFIB member and multi-generational farm owner, joins the Small Business Rundown to discuss his experience with the estate tax and share the challenges of this double taxation when inheriting a small business. These taxes particularly impact farmers and landowners, as land valuations are subject to change, and families are often forced to sell off non-liquid assets to pay off lofty estate taxes, compromising the future of the business.

Fortunately, tax changes signed into law in 2025 permanently increased estate tax exemption rates to $15 million for individuals and $30 million for joint filers. While this tax relief is welcomed by small businesses across the country, a full repeal of the estate tax would protect family businesses from unplanned and costly taxes, keeping more small businesses operational.

Don’t miss this episode of the Small Business Rundown for a closer look at federal estate tax changes for small businesses going forward.

Take Action: Urge your elected representatives to repeal the estate tax.