Estate tax threshold may simply be defined as the minimum amount in dollars of an estate's value at which estate taxes might be due. In most states, this is usually a fixed amount, and anything under that amount is not subjected to tax.
Estate tax threshold can be explained with an example. Consider a person who dies in the year where tax exemption is $3,000,000.00. Then, the estate might not be subject for estate tax if the valuation is below $3,000,000.