Estate Tax Calculator: Federal Tax on a Taxable Estate
Work out the federal estate tax owed on a taxable estate — what the IRS takes before the heirs see anything.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Estate tax | After-tax estate |
|---|---|---|
| 40% of $5M | 2,000,000 | 3,000,000 |
| 40% of $20M | 8,000,000 | 12,000,000 |
| 32% of $2M (lower bracket) | 640,000 | 1,360,000 |
| 16% of $500k (state-only) | 80,000 | 420,000 |
How This Calculator Works
Enter the taxable estate (gross estate minus the federal exemption and deductions) and the applicable rate. The calculator multiplies the two to give the estate tax and shows the after-tax estate that passes to heirs.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
A $5,000,000 taxable estate at the 40% top federal rate owes $2,000,000 in estate tax, leaving $3,000,000 for heirs. The taxable estate is what remains after the federal exemption (over $13M per individual in 2024); estates below the exemption owe no federal estate tax.
Key Insight
The federal estate tax exemption is enormous — over $13M per person, $26M+ for married couples — so most US households pay no federal estate tax at all. Where the tax actually bites is on estates that grew to taxable size unexpectedly, often through illiquid assets like a family business or appreciated real estate. Marital deduction, lifetime gifting, and irrevocable trusts are the standard planning levers.
The 2026 exemption: made permanent by the 2025 OBBB
The Tax Cuts and Jobs Act (2017) roughly doubled the estate and gift tax exemption (inflation-adjusted to $13.61M in 2024 and $13.99M in 2025). That increase was scheduled to sunset after December 31, 2025 and revert to roughly $7M — but the One Big Beautiful Bill Act (OBBB), enacted in 2025, repealed the sunset and set the exemption at $15,000,000 per individual for 2026, indexed for inflation thereafter. The feared 2026 halving did not happen.
What this means for 2026: an individual can shield up to $15M ($30M for a married couple using both exemptions) from federal estate and gift tax; only the amount above that faces the 40% tax. The exemption is now permanent (subject to future legislation) rather than a use-it-or-lose-it cliff, so the earlier urgency to gift before year-end 2025 to 'lock in' the higher amount no longer applies.
Anti-clawback rule (Treasury Regulation §20.2010-1): gifts made under a higher exemption are never 'clawed back' even if the exemption later falls. With OBBB making $15M permanent this is less pressing than under the old sunset, but it still protects large lifetime gifts against any future reduction.
Planning still matters above $15M / $30M: outright lifetime gifts, irrevocable trusts (SLAT — Spousal Lifetime Access Trust; dynasty trusts), and generation-skipping transfers using the GST exemption. Note that state estate taxes (below) apply at far lower thresholds than the federal $15M, so state-level planning is often the binding constraint. Engage an estate-planning attorney for substantial estates.
Marital and charitable deductions
Two unlimited deductions from estate tax base. (1) MARITAL DEDUCTION — transfers to surviving U.S. citizen spouse deductible without limit. Effectively defers estate tax until second spouse's death.
(2) CHARITABLE DEDUCTION — bequests to qualifying charities deductible without limit. Charitable giving in estate plan reduces taxable estate dollar-for-dollar.
Strategy: the two deductions combined can entirely eliminate federal estate tax for many estates. A $20M estate with the $15M exemption plus the remaining $5M passing to a surviving spouse (marital deduction) = $0 federal estate tax at the first death. The surviving spouse then has their own $15M exemption plus the deceased spouse's unused exemption (DSUE via portability) = up to $30M of total exemption — enough to cover the entire estate.
Portability: requires filing Form 706 at the first spouse's death even if no tax is due, to preserve the DSUE. Many couples miss this and forfeit the deceased spouse's exemption. Cost: ~$3K-$10K in legal/CPA fees for a non-taxable estate. Benefit: up to $15M of additional exemption preserved — a strong ROI for wealthier families.
U.S. estate tax scenarios — federal (2026, $15M exemption)
Reference federal estate tax for various estate sizes using the 2026 $15,000,000 exemption and 40% top rate. Excludes state estate taxes (see note).
| Taxable estate | Exemption used | Tax above exemption (40%) | Total estate tax |
|---|---|---|---|
| $5M | $5M (within $15M) | $0 | $0 |
| $15M | $15M (full) | $0 | $0 |
| $20M | $15M | $2.0M | $2.0M |
| $30M | $15M | $6.0M | $6.0M |
| $50M | $15M | $14.0M | $14.0M |
| MFJ $30M with portability | $30M | $0 | $0 |
State estate taxes apply additionally in 12 states + DC with much lower exemptions: Massachusetts ($2M), Oregon ($1M), Washington ($2.193M), Minnesota ($3M). For wealthy residents in these states, state estate tax planning is essential alongside federal planning.
Frequently Asked Questions
How is federal estate tax calculated?
Subtract the federal exemption and allowed deductions from the gross estate to get the taxable estate, then apply the bracket rates (topping out at 40%). The calculator uses a single effective rate; brackets affect the math at the margin.
What is the federal exemption?
Over $13M per individual in 2024, indexed yearly. It is scheduled to roughly halve at the end of 2025 unless Congress extends it — major estate planning hinges on whether and when that happens.
Is there a separate state estate tax?
Some states have one (with their own exemption levels, often lower than federal); most do not. A handful (Maryland, New Jersey historically) have or had a separate inheritance tax.
What is the difference between estate tax and inheritance tax?
Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the recipient after receiving the assets. The US federal level uses estate tax; some states use inheritance tax.
Can the tax be reduced?
Yes — through the unlimited marital deduction, charitable bequests, lifetime gifting (using annual exclusion and lifetime exemption), and various trust structures. Planning matters most for estates above or near the exemption.
When is this calculator unreliable?
When not accounting for portability (surviving spouse using deceased spouse's unused exemption — requires Form 706 filing at first death). Also unreliable for state estate taxes (12 states + DC have separate state estate tax at much lower thresholds than federal $13.61M — particularly important in MA, OR, WA, MN). For estates above $7M, engage qualified estate planning attorney before 2026 sunset of higher federal exemption.
References & Authoritative Sources
- Internal Revenue Service (IRS) — Estate Tax · consulted July 4, 2026 · Federal regulator on estate tax
- American College of Trust and Estate Counsel (ACTEC) — Estate Planning Resources · consulted July 4, 2026 · Professional organization for estate planning attorneys
- Tax Policy Center — Estate and Gift Tax Resources · consulted July 4, 2026 · Academic research on estate tax policy
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source.
Methodology & Review
Federal estate tax equals (taxable estate − exemption) × applicable rate. The calculator returns estimated federal estate tax. U.S. federal estate tax 2024: exemption $13.61M per person ($27.22M MFJ); rate 40% on amount above exemption. Lifetime gift tax exemption is unified with estate tax (gifts during life count against estate exemption). State estate taxes apply in 12 states + DC at lower thresholds (range $1M Oregon to $13M Connecticut). RELIABILITY: Reliable for direct calculation given documented estate value. Less reliable for actual estate planning because (a) various deductions reduce taxable estate (marital deduction, charitable deduction); (b) portability allows surviving spouse to use deceased spouse's unused exemption; (c) state estate taxes vary substantially; (d) post-2026 sunset reduces federal exemption ~50% absent legislative action.
Updated