Inheritance Tax Calculator
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What Your Result Means
- Estimated Estate Tax: The federal tax owed on the portion of the estate above the exemption, at the flat 40% rate. Most estates owe nothing because the exemption is very high — fewer than 0.1% of estates are subject to this tax.
- Federal Exemption: The amount sheltered from estate tax by the unified credit. For 2024, this is $13.61 million per individual or $27.22 million for a married couple who has properly planned portability.
- Taxable Estate: Estate value minus the exemption. If this is zero or negative, no federal estate tax is owed.
- Effective Tax Rate: Total estate tax divided by total estate value. Because the exemption shelters a large portion, the effective rate is always lower than the statutory 40% — often significantly so.
- Estate After Tax: What remains for heirs after federal estate tax. This does not account for state estate or inheritance taxes, which some states impose at lower thresholds.
How This Calculator Works
You enter the total estate value and select single or married filing status. The tool subtracts the 2024 unified credit exemption from the estate value to get the taxable amount, then applies the flat 40% federal estate tax rate. It returns the tax owed, effective rate, and remaining estate. This is a simplified model — it does not include the graduated rate schedule, prior taxable gifts, charitable deductions, marital deductions, or state-level estate and inheritance taxes.
Quick Questions
Will the exemption amount change?
Yes. The current elevated exemption ($13.61M in 2024) is set to roughly halve after 2025 when the Tax Cuts and Jobs Act provisions sunset, potentially dropping to around $7 million per person, adjusted for inflation. Congress may act to extend or modify this threshold.
What is portability and how does it help married couples?
Portability allows a surviving spouse to use the deceased spouse's unused exemption amount in addition to their own. This effectively doubles the married exemption to $27.22M without complex trust planning, but requires filing an estate tax return (Form 706) for the first spouse's estate.
Is there a difference between estate tax and inheritance tax?
Yes. The federal estate tax is levied on the estate itself before distribution. Inheritance tax, imposed by some states, is paid by the individual heirs based on what they receive and their relationship to the deceased. Six states currently impose an inheritance tax.
Does this include state estate taxes?
No. Twelve states and the District of Columbia impose their own estate taxes, often with much lower exemptions (as low as $1 million in some states). Check your state's rules separately, especially if your estate exceeds $2–5 million.
How can I reduce estate tax liability?
Common strategies include annual gift exclusions ($18,000 per recipient in 2024), irrevocable trusts, charitable donations, and strategic use of the marital deduction. Estate planning is complex — consult an estate attorney or tax professional for advice specific to your situation.
Sources
- IRS — Estate Tax Overview (federal estate tax rules, forms, and exemption amounts)
- IRS — 2024 Tax Inflation Adjustments (current exemption thresholds)
- Tax Policy Center — How Many People Pay the Estate Tax (scope and impact analysis)
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.