Estate Tax and Applicable Credit

In 2026, Thomas dies with a taxable estate of $18,000,000. He made no prior taxable gifts. The Basic Exclusion Amount (BEA) in 2026 is $15,000,000 and the applicable credit amount is $5,945,800.

What portion of Thomas’s estate will be subject to federal estate tax?

  1. $0
  2. $3,000,000
  3. $12,054,200
  4. $18,000,000