Are Funeral Expenses Tax Deductible? Here’s What the IRS Allows

Rawpixel / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

It’s said that the only two certainties in life and death and taxes. But what happens when these two eventualities collide? Funeral expenses are typically not tax deductible, unless you meet some very specific, uncommon circumstances.

Here’s what you need to know about what the Internal Revenue Service (IRS) allows when it comes to deducting funeral expenses.

Quick Answer: Can You Deduct Funeral Expenses?

In most cases, the answer is no. The IRS says that funeral expenses are not deductible. But there’s a narrow exception that applies to estates.

If the deceased’s estate is paying the funeral expenses, they may be deductible if:

• The estate makes the payment(s) to the funeral home, and
• The estate is subject to estate tax, which in 2026 means it is valued at more than $15 million.

If both of these conditions are met, the funeral expenses reduce the value of the estate, thereby reducing the estate tax owed.

Can You Deduct Funeral Expenses on Your Personal Taxes?

You cannot deduct funeral expenses on your personal taxes. Qualified medical expenses can be deducted, but the IRS doesn’t put funeral expenses into that category. Therefore, they cannot be deducted on personal tax returns, regardless of whether you itemize deductions or not. Burial or cremation expenses are also not deductible.

When Can an Estate Deduct Funeral Expenses?

According to the IRS, funeral expenses may be deductible if they are paid by the estate — not by an individual — and if the estate is subject to tax.

Federal Estate Tax Threshold

In order to be subject to federal estate tax, an individual’s estate must be valued at $13.99 million or more in 2025. The threshold rises to $15 million in 2026.

Only estates that are subject to tax can deduct funeral expenses, so if the decedent’s estate is less than these limits, no deduction is allowed.

Conditions That Must Be Met 

• The estate must be subject to estate tax
• Funeral expenses must be paid by the estate
• The estate must file Schedule J, Form 706, along with the estate tax return.

Which Funeral Expenses May Be Deductible by a Taxable Estate?

Funeral expenses that are deductible by an estate that is large enough to pay taxes are those that are considered reasonable and customary.

What About Reimbursements and Benefits?

Funeral expenses that are paid by other sources, such as insurance, are not deductible, even if all other conditions apply.

How Executors Claim Funeral Expenses

Executors must follow these steps to claim funeral expenses.

• Pay expenses from an estate account
• Keep receipts for all expenses
• At tax time, itemize expenses on Schedule J of Form 706

Do Any States Treat Funeral Expenses Differently?

Some states allow funeral expenses to be deducted on an estate’s income tax return as long as the estate is large enough to trigger an inheritance tax. However, many states have lower estate tax thresholds than the federal threshold, so an estate that may not be able to deduct funeral expenses on its federal tax return may be able to do so on its state return.

According to Tax Slayer, states that allow a deduction for funeral expenses include:

• District of Columbia
• Connecticut
• Hawaii
• Illinois  
• Kansas  
• Maine
• Maryland
• Massachusetts
• Minnesota
• New York
• Oregon
• Rhode Island
• Vermont
• Washington

Check with your state’s department of revenue website for the rules in your state.

Better Ways To Prepare for Funeral Costs

Even though funeral expenses are typically not tax deductible, there are ways to prepare for the eventual cost.

• Prepay your funeral expenses
• Take out a life insurance policy to cover the expense
• Have a separate savings account to pay for your final expenses

Key Takeaways

• Funeral expenses are not tax deductible on individual tax returns.
• If funeral expenses are paid by the estate, and the estate is large enough to be subject to federal estate tax, expenses may be deductible.
• Some states with lower estate tax thresholds may allow estates to deduct funeral expenses.

Josephine Nesbit contributed to the reporting for this article.

Share This Article: