Estate Tax Calculator
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What Your Result Means
- Exemption used: The amount of the estate shielded from federal estate tax. For 2026 the individual exemption is $13.61 million ($27.22 million for married couples using portability). This is previously scheduled to halve after 2025 but made permanent at $15M by the OBBBA in 2025 unless Congress acts.
- Taxable estate: The portion of the estate above the exemption. Only this amount is subject to the federal estate tax.
- Federal estate tax: The estimated tax owed, calculated at the flat 40% rate applied to the taxable estate. The actual federal rate schedule is graduated (18–40%), but estates large enough to exceed the exemption effectively pay at or near the top 40% bracket on the excess.
- Effective rate: The total tax as a percentage of the gross estate. This is always lower than 40% because the exemption shelters a large portion. Estates near the exemption threshold may have very low effective rates.
How This Calculator Works
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.
Quick Questions
Does this include state estate or inheritance tax?
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.
What happens to the exemption after 2025?
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.
What is portability for married couples?
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.
Does this account for lifetime gifts?
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.
Why does this use a flat 40% rate?
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.
Sources
- IRS — Estate Tax (current exemption amounts, filing requirements)
- IRS Form 706 Instructions (graduated rate schedule, portability election)
- Tax Policy Center — Estate & Gift Tax (policy overview, sunset provisions)
Method & review
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.