You enter the total gross estate value, filing status (single or married), and the tax year. The tool looks up the applicable federal exemption amount for that year and filing status, subtracts it from the estate value, and applies the top federal estate tax rate of 40% to the excess. It assumes the full exemption is available (no prior taxable gifts) and uses a simplified flat 40% rate rather than the graduated schedule. State estate or inheritance taxes are not included.
No. Twelve states and the District of Columbia impose their own estate taxes, often with much lower exemptions (some as low as $1 million). Six states have inheritance taxes. Check your state's rules separately — the combined federal and state burden can be significantly higher than the federal estimate alone.
The 2017 Tax Cuts and Jobs Act roughly doubled the exemption through 2025. Unless Congress extends it, the exemption is scheduled to revert to approximately $7 million per person (adjusted for inflation) starting in 2026. This calculator lets you toggle the year to compare scenarios.
If the first spouse to die does not use their full exemption, the surviving spouse can claim the unused portion — effectively doubling the exemption. This requires filing IRS Form 706 at the first spouse's death, even if no tax is owed.
No. The estate and gift tax exemptions are unified: taxable gifts made during your lifetime reduce the exemption available at death. If you have made significant gifts above the annual exclusion ($18,000 per recipient in 2024), your actual remaining exemption may be lower than shown.
The federal estate tax has a graduated rate schedule from 18% to 40%, but the exemption already covers the lower brackets. Any estate large enough to owe tax is effectively in the 40% bracket on the excess amount, making the flat rate a close approximation. For detailed bracket calculations, consult the IRS Form 706 instructions.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.