Estate Tax Calculator
This calculator helps you estimate your potential estate tax liability. It is designed for individuals seeking to understand the financial implications of estate taxation.
Calculate Your Estate Tax
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Data Source and Methodology
All calculations are based on the formulas and data provided by the IRS estate tax guidelines. Visit IRS for more information.
The Formula Explained
The estate tax is calculated using the formula: Estate Tax = Estate Value × Tax Rate / 100.
Glossary of Terms
- Estate Value: Total value of the deceased's assets.
- Tax Rate (%): Percentage rate at which the estate is taxed.
- Estate Tax: Total tax liability on the estate.
How It Works: A Step-by-Step Example
Consider an estate valued at $1,000,000 with a tax rate of 40%. The estate tax would be calculated as $1,000,000 × 40% = $400,000.
Frequently Asked Questions (FAQ)
What is estate tax?
Estate tax is a tax on the transfer of the estate of a deceased person.
How is estate tax calculated?
Estate tax is calculated based on the fair market value of the deceased's assets at the time of death.
When is estate tax due?
Estate tax is generally due nine months after the date of the deceased's death.