FINANCIAL · ESTATE TAX
Estate Tax Calculator
Estimate federal US estate tax using the 2026 exemption ($7,000,000) and 40% tax rate — enter gross estate, deductions, and liabilities to see your taxable estate and estimated tax. For planning only; consult an estate attorney.
About This Calculator
Estimate your federal estate tax using the 2026 federal exemption and the flat 40% marginal rate on amounts above the exemption. Enter your gross estate value, eligible deductions (marital, charitable, debts, funeral expenses), and see the taxable estate, estimated federal tax, and net amount passing to heirs. Note: the 2026 exemption (~$7M) reflects the post-TCJA sunset from the 2025 level (~$14M). State estate taxes are not modeled. Consult an estate planning attorney.
How It Works
The federal estate tax applies to the taxable estate, which is the gross estate minus allowable deductions, minus the federal exemption. The key deductions are: (1) the marital deduction — unlimited for transfers to a US citizen spouse; (2) charitable deductions — unlimited for qualified charitable bequests; (3) debts and liabilities (mortgages, loans, payables); and (4) funeral and administrative expenses. The taxable estate is taxed at a flat 40% rate. Note that the federal exemption is portable between spouses, so married couples can effectively double the exemption via a properly filed estate tax return.
The Formula
Federal Tax = max(0, Gross Estate − Deductions − Exemption) × 40%
- Gross Estate
- Total fair-market value of all assets at date of death
- Deductions
- Marital + charitable + debts + funeral/admin expenses
- Exemption
- 2026 federal basic exclusion amount (~$7,000,000)
- 40%
- Federal estate tax marginal rate on the taxable estate
Frequently Asked Questions
- What is the 2026 federal estate tax exemption?
- The 2026 federal basic exclusion amount is approximately $7,000,000 per individual (estimated, pending IRS confirmation). This is lower than the 2025 exemption of ~$13.99M because the Tax Cuts and Jobs Act's doubled exemption is scheduled to sunset after December 31, 2025, reverting to approximately the 2010 base of $5M adjusted for inflation. For 2026 planning, use ~$7M as a working estimate and confirm the exact figure with your estate attorney when the IRS publishes the official amount.
- Is the estate tax exemption portable between spouses?
- Yes, since 2013, the federal estate tax exemption is "portable" between spouses. If the first spouse to die does not use their full exemption, the surviving spouse can elect to use the remaining exemption ("DSUE" — Deceased Spouse Unused Exclusion). A timely-filed estate tax return (Form 706) is required to elect portability, even if no tax is owed.
- Do states have their own estate taxes?
- Yes, 12 US states and the District of Columbia have their own estate or inheritance taxes, often with lower exemptions than the federal threshold. States with estate taxes include Massachusetts, Oregon, and Washington (exemptions as low as $1M–$2.1M). Some states have inheritance taxes based on who inherits, not the estate size. This calculator models federal only.
- What is the marital deduction?
- The unlimited marital deduction allows a US decedent to transfer any amount to a US citizen surviving spouse with no estate tax. The assets are included in the surviving spouse's estate when they die. The deduction does NOT apply to non-citizen spouses without a Qualified Domestic Trust (QDOT).
- What assets are included in the gross estate?
- The gross estate includes all assets in which the decedent had an ownership interest at death — including real property, investment accounts, retirement accounts (IRAs, 401(k)s), life insurance proceeds (if estate is the beneficiary), business interests, and certain gifts made within 3 years of death. Assets in properly structured irrevocable trusts (like an ILIT) may be excluded.