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.
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.
Related Calculators
Methodology & Review
Estate tax is the taxable estate multiplied by the applicable rate. 'Taxable estate' means gross estate minus the federal exemption (over $13M per individual in 2024) and deductions. The calculator models a single flat rate; the federal estate tax actually runs progressive brackets — fold the effective rate into what you enter.
Written by Ugo Candido · Last updated May 17, 2026.