Inheritance Tax Calculator

Estate tax is paid by the deceased person's estate before any assets are distributed to heirs. It is computed on the total taxable estate, owed by the executor, and settled out of estate funds. Inheritance tax is paid by each heir after they receive their share, with the rate often varying by the heir's relationship to the deceased (closer relatives like children pay less than distant relatives or non-relatives). The US federal government levies an estate tax only. Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) levy an inheritance tax, and Maryland is the one state that imposes both. This calculator models the estate tax view, which is the federal default and the structure used by the 12 states plus DC with state-level estate taxes.

Approximately $14 million per decedent for 2026, with a 40% top marginal rate. The unified estate and gift tax exemption was $13.99 million for 2025 (IRS Rev. Proc. 2024-40), and the One Big Beautiful Bill Act (OBBBA, signed July 2025) replaced the scheduled TCJA sunset and kept the exemption at the high level permanently, indexed for inflation. That means an estate of $14 million or less generally owes zero federal estate tax. Above that threshold, the excess is taxed at the 40% top rate, since every lower bracket in the IRC Section 2001 schedule is fully consumed by the unified credit that produces the exemption itself.

The unlimited marital deduction (IRC Section 2056) lets a decedent leave any amount to a surviving US citizen spouse with zero federal estate tax, no matter how large the estate. The catch is timing: the assets are still taxable in the surviving spouse's estate when they later die, so without portability planning the second death can produce a much larger bill. The unlimited charitable deduction (IRC Section 2055) does the same for bequests to qualifying 501(c)(3) charities, private foundations, and similar public-purpose entities. Many large estates use a combination: leave the federal exemption to children or a credit shelter trust, then leave the remainder to the spouse and to charity to wipe out federal liability.

Twelve states plus the District of Columbia levy an estate tax: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and DC. State exemptions are far lower than the federal $14 million: Massachusetts and Oregon both start at $1 to $2 million, and top rates range from 12% (Connecticut, Maine) to 20% (Hawaii, Washington). Six states levy an inheritance tax instead: Iowa (being phased out by 2025), Kentucky, Maryland (which has both), Nebraska, New Jersey, and Pennsylvania. Inheritance tax rates depend on the heir's relationship to the deceased and typically range from 0% for a surviving spouse and children to 15% or more for unrelated beneficiaries.

Portability lets a surviving spouse inherit any unused portion of the deceased spouse's federal estate and gift tax exemption, called the deceased spousal unused exclusion (DSUE). For a married couple, that means up to roughly $28 million can pass free of federal estate tax across two deaths in 2026, instead of being limited to $14 million each. To claim DSUE the executor must file a timely IRS Form 706 (United States Estate Tax Return) for the first spouse to die, even when no tax is otherwise owed, and check the box electing portability. The form is due 9 months after death (with a 6-month extension available on Form 4768). Missing the election permanently forfeits the first spouse's unused exemption, which is a common and costly estate planning mistake for surviving spouses with growing estates.