Estate Tax Calculator — US Federal Estate Tax Estimator
Estimated Estate Tax
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Taxable Estate
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Exemption Used
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Effective Tax Rate
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Estate Tax Bracket Breakdown
How to Calculate Estate Tax
The federal estate tax applies to the transfer of property upon death for estates exceeding the exemption threshold. This calculator estimates your potential federal estate tax liability using the progressive bracket system that ranges from 18% to 40%. It accounts for deductions, the marital deduction, and the applicable exemption amount based on your selected tax year.
A major change is expected in 2026: the Tax Cuts and Jobs Act doubled the estate tax exemption to roughly $13.99 million per person in 2025. When these 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). Married couples using portability can effectively double the exemption.
Estate planning strategies such as irrevocable trusts, charitable giving, annual gift exclusions ($19,000 per recipient in 2025), and life insurance trusts can help reduce your taxable estate. Since state estate taxes may also apply (with much lower exemptions in states like Oregon, Massachusetts, and Washington), consult an estate planning attorney for comprehensive guidance.
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) after the Tax Cuts and Jobs Act provisions expire at the end of 2025. The 2025 exemption was $13.99 million per individual ($27.98 million for married couples). Check IRS updates for the final 2026 figure.
How does the marital deduction work?
The unlimited marital deduction allows you to leave any amount to a surviving spouse who is a US citizen without incurring estate tax. This effectively defers estate tax until the surviving spouse passes away. Portability allows the surviving spouse to use the deceased spouse's unused exemption amount.
What is the difference between estate tax and inheritance tax?
Estate tax is a federal tax on the deceased person's estate before distribution. Inheritance tax is a state-level tax paid by the beneficiary who receives the assets. Only six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) impose an inheritance tax. Maryland is the only state with both.
What assets are included in the taxable estate?
The gross estate includes all assets owned at death: real estate, bank accounts, investments, retirement accounts, life insurance proceeds (if you owned the policy), business interests, and certain gifts made within three years of death. Deductions include debts, funeral expenses, charitable bequests, and the marital deduction.