Federal Estate Tax Calculator

Start with the gross estate, the fair-market value of everything you own, then subtract deductions like debts, funeral and administration costs, and any marital or charitable bequests to get the taxable estate. Subtract your lifetime exemption (the basic exclusion amount, 15,000,000 dollars per person in 2026). Whatever remains is taxed at the 40 percent top rate. So a 20,000,000 dollar estate with a 15,000,000 dollar exemption is taxed on 5,000,000 dollars, for 2,000,000 dollars of estate tax.

The federal estate tax technically runs on a graduated schedule from 18 to 40 percent, but the unified credit cancels out the tax on every dollar up to the exemption. Because the 2026 exemption of 15,000,000 dollars is far above the roughly 1,000,000 dollar point where the 40 percent bracket begins, every taxable dollar that exceeds the exemption lands in the top bracket. A flat 40 percent on the amount above the exemption gives the same result as the full table.

Estate tax is paid by the estate itself, out of the total assets, before anything passes to heirs. Inheritance tax is paid by each person who receives assets, and the rate often depends on how closely related they were to the deceased. The federal government levies only an estate tax, with no federal inheritance tax. A small number of states charge an inheritance tax, and a few charge their own estate tax with lower exemptions, so check your state rules separately.

When the first spouse dies, any unused portion of their exemption can transfer to the surviving spouse through portability, called the deceased spousal unused exclusion or DSUE. This lets a married couple shield up to two full exemptions, about 30,000,000 dollars in 2026, from federal estate tax. Choosing the married option in this calculator applies two exemptions; portability is not automatic and must be elected on a timely filed Form 706 for the first spouse.

The gross estate includes nearly everything you own or control at death: real estate, bank and investment accounts, business interests, retirement accounts, vehicles, and personal property. It also includes the full death benefit of any life insurance policy you own, plus certain gifts and trust assets. Enter that combined fair-market value as the gross estate, then use the deductions field for debts and amounts left to a spouse or charity.

No. This calculator gives an estimate for planning and education only and is not financial, legal, or tax advice. Estate tax depends on exact asset valuations, the year's exemption amount, state-level taxes, prior taxable gifts, and elections like portability, all of which change over time. Confirm any figure with a qualified estate attorney or tax professional before making decisions.