Estate Tax Calculator
Calculate potential federal estate tax on an estate. Accounts for the current federal exemption amount, marital deductions, and graduated tax brackets from 18% to 40%. See a bracket-by-bracket breakdown of tax owed.
The U.S. federal estate tax applies to the transfer of property at death, but only for estates exceeding the very high federal exemption — currently $13.99 million per individual in 2025 (up from $13.61 million in 2024, indexed for inflation). Married couples can effectively double the exemption through "portability" of the deceased spouse's unused exemption, sheltering up to $27.98 million combined. Above the exemption, federal estate tax rates climb to 40% on the marginal amounts.
For more than 99% of U.S. estates, no federal estate tax is owed. The exemption is set high enough that only the wealthiest decedents reach taxable territory. But the exemption isn't permanent — under current law, the doubled exemption from the 2017 Tax Cuts and Jobs Act is scheduled to revert to roughly half (estimated ~$7 million per person) starting in 2026 unless Congress extends it. The estate planning landscape for high-net-worth families changes dramatically depending on what Congress does.
This calculator estimates federal estate tax liability for estates exceeding the exemption. It applies the federal exemption (with optional portability for married couples), subtracts debts and deductions, then computes tax using the graduated estate tax brackets. State estate taxes (which have much lower exemptions in many states — sometimes as low as $1 million) are not included; check your state separately. Use the calculator to identify whether estate planning strategies (gifting, trusts, life insurance, charitable bequests) are worth pursuing for your specific situation.
Inputs
Results
Taxable Estate
$890,000
Estate Tax Owed
$302,900
Effective Tax Rate
2.02%
Exemption Used
$13,610,000
Estate Breakdown
Tax Bracket Breakdown
| Bracket | Rate (%) | Taxable Amount | Tax | Cumulative Tax |
|---|---|---|---|---|
| $0 - $10,000 | 18.00% | $10,000.00 | $1,800.00 | $1,800.00 |
| $10,000 - $20,000 | 20.00% | $10,000.00 | $2,000.00 | $3,800.00 |
| $20,000 - $40,000 | 22.00% | $20,000.00 | $4,400.00 | $8,200.00 |
| $40,000 - $60,000 | 24.00% | $20,000.00 | $4,800.00 | $13,000.00 |
| $60,000 - $80,000 | 26.00% | $20,000.00 | $5,200.00 | $18,200.00 |
| $80,000 - $100,000 | 28.00% | $20,000.00 | $5,600.00 | $23,800.00 |
| $100,000 - $150,000 | 30.00% | $50,000.00 | $15,000.00 | $38,800.00 |
| $150,000 - $250,000 | 32.00% | $100,000.00 | $32,000.00 | $70,800.00 |
| $250,000 - $500,000 | 34.00% | $250,000.00 | $85,000.00 | $155,800.00 |
| $500,000 - $750,000 | 37.00% | $250,000.00 | $92,500.00 | $248,300.00 |
| $750,000 - $1,000,000 | 39.00% | $140,000.00 | $54,600.00 | $302,900.00 |
Formula
How to use this calculator
- Enter total estate value at fair market value at date of death. Include: real estate, investments (stocks, bonds, retirement accounts), business interests, cash, personal property, life insurance death benefits (if owned by the decedent), and any other assets.
- Enter deductions and debts: outstanding mortgages, credit card debt, medical bills, funeral expenses, administrative costs of settling the estate (legal fees, executor fees, accounting). The marital deduction (unlimited for property left to spouse) and charitable deduction (unlimited for property left to qualifying charities) are separate from this input.
- Select filing status. "Single" applies one individual exemption. "Married with portability" applies up to double the exemption if the predeceased spouse's exemption was properly preserved via timely-filed Form 706.
- Review the calculated estate tax. For most estates (under the exemption), the result is $0.
- For estates approaching or above the exemption, the calculator output is a starting point — real estate planning involves trusts, gifting strategies, life insurance owned by an ILIT, and other techniques that can substantially reduce tax. Always work with an estate planning attorney for estates above $5-10 million.
- Don't forget state estate tax. Many states (Massachusetts, Oregon, Washington, Hawaii, several others) have estate tax with much lower exemptions — sometimes as low as $1-3 million. Federal exemption being high doesn't mean state-level tax doesn't apply.
- Consider the upcoming exemption sunset. Under current law, the doubled exemption from TCJA reverts to roughly $7M/person starting 2026. Estate planning urgency for high-net-worth families increases dramatically if you're close to the post-sunset exemption.
Worked examples
Modest estate — no federal tax
$5,000,000 estate, $200,000 debts, single. No spouse. Taxable estate: $4,800,000 Federal exemption: $13,990,000 Tax: $0 (estate is well under exemption) Most U.S. estates fall into this category. With the high current exemption, less than 1% of estates owe federal estate tax. State estate tax may still apply — check your state.
Wealthy single decedent — meaningful tax
$25,000,000 estate (entrepreneur, business sale proceeds), $500,000 debts, single. Taxable estate: $24,500,000 Federal exemption: $13,990,000 Taxable amount: $10,510,000 Federal Estate Tax: $10,510,000 × 0.40 = $4,204,000 Net to heirs: $24,500,000 − $4,204,000 = $20,296,000 Substantial tax (17% of estate). Planning strategies that could reduce this include: lifetime gifting (using annual exclusions and lifetime gift exemption), Irrevocable Life Insurance Trust (ILIT) to remove life insurance proceeds from estate, charitable bequests, family limited partnership discounts on business interests. With multi-year planning, a $25M estate could potentially pay far less tax.
Married couple — full portability
$22,000,000 combined estate. Husband dies first with $11M of assets, leaves all to wife. Wife dies later when assets have grown to $24M. Husband's death: marital deduction makes $11M transfer tax-free. His $13.99M exemption is unused. Estate files Form 706 to elect portability — his unused exemption ($13.99M) is preserved. Wife's death: combined exemption available = her $13.99M + his unused $13.99M = $27.98M. Taxable estate: $24,000,000 Combined exemption: $27,980,000 Taxable amount: $0 (estate under combined exemption) Federal Estate Tax: $0 Net to heirs: $24,000,000 The portability election allows married couples to effectively double the exemption. Critically: the surviving spouse's estate gets the deceased spouse's unused exemption ONLY if Form 706 was timely filed at the first death — even when no tax was due. This is a common estate-planning oversight that costs millions in some cases.
When to use this calculator
Use this calculator if your estate or your parents' estate approaches or exceeds the federal exemption ($13.99M individual / $27.98M married in 2025). For most Americans, federal estate tax is not a concern, but for the wealthy minority, the planning stakes are high.
If your estate is below $5 million, federal estate tax is unlikely to be relevant under current law. State estate tax may still apply in some states. Focus other estate planning energy on probate-avoidance, asset protection, and orderly succession rather than tax minimization.
If your estate is $5-15 million, you're in a "watch and plan" zone. Current federal exemption shelters you, but: (1) the 2026 exemption sunset could bring you back into taxable territory, (2) state estate tax may apply, and (3) growth of the estate over time could push you above the post-sunset exemption. Annual review with an estate planning attorney is appropriate.
If your estate is above $15 million (especially $20M+), federal estate tax is a substantial concern even under current law. Comprehensive estate planning — including some combination of lifetime gifting strategies, Irrevocable Life Insurance Trust (ILIT), Grantor Retained Annuity Trust (GRAT), Charitable Remainder Trust (CRT), family limited partnerships, and intentionally defective grantor trusts (IDGT) — can reduce eventual tax by millions. Estate planning attorneys specializing in high-net-worth families are essential.
Pair this with the life-insurance-needs calculator (life insurance owned by an ILIT removes proceeds from estate while providing liquidity for estate tax), the net-worth calculator (for understanding total estate value), the income-tax-estimator (for comparing income tax to estate tax planning trade-offs), and the charitable-giving-tax calculator (for evaluating charitable bequests).
Key estate planning strategies (consult an attorney for implementation):
1. **Annual gift exclusion.** $18,000 per recipient per year (2024; $19,000 in 2025) can be gifted without using lifetime exemption. A couple can gift $36-38K per recipient. Multi-decade gifting can transfer millions outside the estate.
2. **Lifetime gift exemption.** The $13.99M federal exemption applies to combined lifetime gifts and estate transfers. Using exemption during life can be more valuable than at death (especially if asset is expected to appreciate — the appreciation also escapes estate tax).
3. **ILITs (Irrevocable Life Insurance Trusts).** Life insurance owned by the insured's estate is included in the estate for tax purposes. An ILIT owns the policy, removing the death benefit from the estate while providing tax-free liquidity to pay estate taxes.
4. **Charitable bequests.** Property left to qualifying charities has unlimited deduction from the taxable estate. For estate-tax-affected estates, charitable remainder trusts and charitable lead trusts can combine charitable goals with estate tax reduction.
5. **Generation-skipping planning.** Transfers to grandchildren (or further descendants) can use the GST tax exemption (same as estate tax exemption) to skip a generation of estate tax.
6. **State residency.** Some affluent families relocate before retirement from high-tax estate states (NY, MA, OR, WA) to no-estate-tax states (FL, TX, NV, etc.) for state estate tax planning.
The combination of high federal exemption + sunset risk + state estate tax variations + sophisticated planning opportunities makes estate planning for high-net-worth families one of the most consequential areas of personal financial planning.
Common mistakes to avoid
- Assuming no estate tax issue because federal exemption is high. State estate taxes have much lower exemptions in some states (Massachusetts $2M, Oregon $1M historically). Check your state.
- Failing to file Form 706 at first spouse death for portability. Portability requires a timely-filed estate tax return at the first spouse's death — even when no tax is due. Missing this filing can cost the second-to-die estate millions in tax.
- Forgetting the 2026 exemption sunset. Under current law, the doubled TCJA exemption reverts to ~$7M/person starting 2026 unless Congress acts. Estates currently sheltered may become taxable. Plan accordingly.
- Failing to include life insurance death benefits. Life insurance owned by the decedent is included in the gross estate. Transferring ownership to an ILIT (Irrevocable Life Insurance Trust) more than 3 years before death removes the proceeds from the estate.
- Procrastinating estate planning for wealthy families. The most powerful estate planning tools (GRATs, gifting strategies, etc.) work better with more years until death. Starting at age 75+ is much less effective than starting at age 55.
- Ignoring step-up in basis as a counterweight to estate tax. Assets held until death receive a stepped-up cost basis — heirs inherit at current value with no income tax on prior appreciation. For estates below the exemption, this is enormously valuable (no estate tax, no income tax on appreciation). Strategies that move assets out of the estate to avoid estate tax may sacrifice the step-up benefit.
Frequently Asked Questions
Sources & further reading
- Estate Tax — overview and forms — U.S. Internal Revenue Service
- Frequently Asked Questions on Estate Taxes — U.S. Internal Revenue Service
- Estate Tax — Tax Foundation analysis — Tax Foundation