Estate Tax Calculator — US Federal Estate Tax Estimator
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Taxable Estate
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Estate Tax Bracket Breakdown
How Federal Estate Tax Is Calculated
The federal estate tax is a tax on the transfer of property at death, applying to estates that exceed the lifetime exemption threshold. Unlike a flat rate, the U.S. estate tax uses a progressive bracket system with rates ranging from 18% to 40%, as defined in IRS estate tax guidelines. This calculator estimates your liability using the full bracket schedule, accounting for deductions, the marital deduction, and the applicable exemption amount for your selected tax year.
The Tax Cuts and Jobs Act of 2017 roughly doubled the exemption, bringing it to $13.99 million per individual in 2025 ($27.98 million for married couples using portability). When these TCJA provisions sunset at the end of 2025, the exemption is projected to revert to approximately $7 million per individual, inflation-adjusted from the pre-TCJA $5.49 million. According to Tax Policy Center analysis, the number of taxable estates could roughly quadruple after the 2026 reversion, affecting an estimated 10,000-20,000 estates annually versus approximately 4,100 under the higher exemption. Our Estate Planning Calculator provides a simplified exposure estimate for quick reference.
The Estate Tax Formula and Brackets
The estate tax calculation follows these steps:
1. Gross Estate = all assets at death2. Net Estate = Gross Estate - Deductions - Marital Deduction3. Taxable Estate = Net Estate - Exemption4. Tax = apply progressive brackets (18%-40%) to Taxable Estate
For example, a single individual in 2026 with a $10 million net estate and a $7 million exemption has a $3 million taxable estate. The first $1 million is taxed at graduated rates from 18-39%, and the remaining $2 million is taxed at 40%. The total tax would be approximately $1,145,800 -- an effective rate of about 11.5% on the entire estate.
Key Terms You Should Know
- Gross Estate: The total fair market value of everything you own or have certain interests in at death, including real estate, investments, retirement accounts, life insurance, and business interests.
- Marital Deduction: An unlimited deduction allowing you to transfer any amount to a surviving U.S. citizen spouse without estate tax. This defers tax until the surviving spouse's death.
- Portability: Allows the surviving spouse to use the deceased spouse's unused exemption by filing Form 706, even when no tax is owed.
- Unified Credit: The tax credit that offsets estate tax on the exemption amount. The exemption and unified credit are two sides of the same coin.
- State Estate Tax: Twelve states and DC impose separate estate taxes with exemptions as low as $1 million (Oregon, Massachusetts). These are in addition to federal estate tax.
Federal Estate Tax Brackets (2025/2026)
The bracket structure remains the same regardless of the exemption amount. The exemption determines how much of the taxable estate escapes taxation.
| Taxable Amount | Rate | Cumulative Tax |
|---|---|---|
| $0 - $10,000 | 18% | $1,800 |
| $10,001 - $20,000 | 20% | $3,800 |
| $20,001 - $40,000 | 22% | $8,200 |
| $40,001 - $60,000 | 24% | $13,000 |
| $60,001 - $80,000 | 26% | $18,200 |
| $80,001 - $100,000 | 28% | $23,800 |
| $100,001 - $150,000 | 30% | $38,800 |
| $150,001 - $250,000 | 32% | $70,800 |
| $250,001 - $500,000 | 34% | $155,800 |
| $500,001 - $750,000 | 37% | $248,300 |
| $750,001 - $1,000,000 | 39% | $345,800 |
| Over $1,000,000 | 40% | $345,800 + 40% of excess |
Practical Examples
Example 1 -- Single individual, 2026: A single person dies with a $10 million gross estate, no deductions, and no marital deduction. With the 2026 exemption of ~$7 million, the taxable estate is $3 million. Estate tax: $345,800 (on the first $1M) + $800,000 (40% of the remaining $2M) = $1,145,800. Effective rate: 11.5%.
Example 2 -- Married couple, 2025 vs. 2026: A married couple with a $20 million estate uses portability. In 2025, their combined exemption is $27.98 million, so no tax is owed. In 2026, the combined exemption drops to ~$14 million, creating a $6 million taxable estate and approximately $2,345,800 in tax. This $2.3 million difference illustrates why the TCJA sunset is critical for high-net-worth families.
Example 3 -- Estate with charitable deduction: A $15 million estate includes a $2 million charitable bequest. The charitable deduction reduces the net estate to $13 million. With a 2026 exemption of $7 million, the taxable estate is $6 million, and the tax is approximately $2,345,800. Without the charitable bequest, the taxable estate would be $8 million with tax of $3,145,800, so the charitable giving saves $800,000 in estate tax.
Strategies to Minimize Estate Tax
- Maximize the marital deduction: Leave assets to your surviving spouse tax-free. Combined with portability, this provides maximum flexibility.
- Make lifetime gifts: Use the $19,000 annual gift exclusion (2025) to systematically reduce your estate. A couple gifting to 5 beneficiaries removes $190,000/year without using any lifetime exemption.
- Use irrevocable trusts: Transfer assets out of your estate permanently through various trust structures (ILITs, GRATs, QPRTs) to reduce the taxable estate.
- Increase charitable giving: Charitable bequests receive an unlimited estate tax deduction. Use our Charitable Giving Calculator to explore lifetime giving options with income tax benefits.
- Plan for state estate taxes: States like Oregon ($1M exemption), Massachusetts ($2M), and Washington ($2.193M) have much lower thresholds. A Tax Policy Center analysis maps all state-level estate and inheritance taxes.
Frequently Asked Questions
What is the federal estate tax exemption for 2026?
The 2026 federal estate tax exemption is expected to revert to approximately $7 million per individual (adjusted for inflation) when the Tax Cuts and Jobs Act provisions expire at the end of 2025. For context, the 2025 exemption is $13.99 million per individual ($27.98 million for married couples using portability). This means estates between $7 million and $14 million that are currently exempt could face significant tax bills. The IRS will publish the final inflation-adjusted 2026 figure before January 2026. According to the Tax Policy Center, this change could quadruple the number of taxable estates annually.
How does the marital deduction work for estate tax?
The unlimited marital deduction allows you to leave any amount to a surviving spouse who is a U.S. citizen without incurring estate tax. This effectively defers estate tax until the surviving spouse passes away. It applies automatically to assets passing to the spouse outright or through qualifying trusts (such as a QTIP trust). Combined with portability -- where the surviving spouse inherits the deceased spouse's unused exemption -- married couples can shield up to $27.98 million (2025) or approximately $14 million (2026) from estate tax. For non-citizen spouses, a Qualified Domestic Trust (QDOT) is required to claim the marital deduction.
What is the difference between federal estate tax and state inheritance tax?
Federal estate tax is paid by the deceased person's estate before assets are distributed, using the progressive bracket system (18-40%). Inheritance tax is a state-level tax paid by individual beneficiaries based on how much they inherit and their relationship to the deceased. Six states impose inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Rates vary by state and relationship -- spouses are typically exempt, while unrelated beneficiaries may pay 10-18%. Maryland is the only state that imposes both an estate tax and an inheritance tax. Twelve states and DC also have their own estate taxes with lower exemptions ($1-5.85 million).
What assets are included in the gross taxable estate?
The gross estate includes virtually everything you own or have beneficial interests in at death: real estate, bank accounts, stocks and bonds, mutual funds, retirement accounts (IRAs, 401(k)s), life insurance proceeds (if you owned the policy), business interests, vehicles, jewelry, art, and certain gifts made within three years of death. Jointly owned property is included proportionally. Allowable deductions include outstanding debts, funeral expenses, administrative costs, charitable bequests, and the unlimited marital deduction. The net estate after deductions is then reduced by the exemption to determine the taxable amount.
How can I estimate my estate tax liability using this calculator?
Enter your total gross estate value (sum of all assets at fair market value), any deductions (debts, expenses, charitable bequests), the marital deduction if applicable, your filing status (single or married with portability), and the tax year (2025 or 2026). The calculator applies the full progressive bracket schedule to the taxable amount above the exemption, showing you the estimated tax, effective rate, and a bracket-by-bracket breakdown. For comprehensive estate planning, combine this with our Estate Planning Calculator to model the impact of life insurance, ILITs, and charitable strategies.