π° Estate Tax Calculator
Estimate federal estate tax with the 2026 $15 million exemption at the 40% rate.
Estimated Federal Estate Tax
Estimates for planning only, not financial advice. 2026 exemption: $15M per person ($30M married with portability), 40% top rate. State taxes not included.
How to Use This Calculator
Enter the total value of the gross estate, subtract debts and settlement expenses, account for any lifetime taxable gifts that already used exemption, and choose marital status. The calculator applies the 2026 federal exemption and shows the taxable amount, the tax at 40 percent, and the effective rate on the estate.
Enter the Gross Estate Value: everything owned at death, including real estate, accounts, business interests, and owned life insurance.
Enter Debts and Expenses: mortgages, loans, funeral costs, and administration expenses that reduce the taxable estate.
Enter Lifetime Taxable Gifts Already Used, the portion of the unified exemption consumed by gifts above the annual exclusion in prior years.
Choose Marital Status. Married with portability doubles the exemption to $30 million, but portability requires a timely Form 706 election.
The Estate Tax Formula
Technically the IRS computes the tax on the whole estate with the unified rate schedule and then subtracts the credit for the exemption, but at 2026 levels that collapses to a flat 40 percent on the excess. The key insight is the cliff shape: an $18 million estate owes $1.2 million, while a $15 million estate owes nothing.
Worked Example
A single person dies in 2026 with a gross estate of $18,000,000, no debts, and no prior taxable gifts. The available exemption is the full $15,000,000. The taxable amount is 18000000 - 15000000 = $3,000,000, and the federal estate tax is 3000000 x 0.40 = $1,200,000, an effective rate of 6.67 percent on the whole estate. If the same person were married with full portability, the $30 million combined exemption would cover the estate completely and the federal tax would be $0.
Why Most Families Owe Nothing, and Why Planning Still Matters
Well under 1 percent of estates owe any federal estate tax at a $15 million exemption. But the exemption is per person and portable only with the right filing, state taxes start far lower, and the annual gift exclusion of $19,000 per recipient lets wealth move out of the estate tax-free every year. For estates near the line, lifetime gifting, trusts, and valuation discounts do the real work, and they work best started years before they are needed.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the 2026 federal estate tax exemption?
For 2026 the basic exclusion amount is $15 million per person, or $30 million for a married couple using portability. The One Big Beautiful Bill Act, signed July 4, 2025, set the $15 million figure permanently and removed the sunset that would have cut the exemption roughly in half. Starting in 2027 the amount adjusts for inflation each year.
How is the estate tax actually calculated?
The IRS totals the gross estate, subtracts debts, expenses, and deductions like charitable bequests, then applies the tax to the full amount using the unified rate schedule and subtracts a credit equal to the tax on the exemption. At these levels the result is effectively 40 percent of every dollar above the exemption. Only the excess is taxed, never the whole estate.
What counts as part of the gross estate?
Nearly everything you own or control: real estate, bank and investment accounts, business interests, vehicles, personal property, and life insurance you owned. Some assets get special treatment, such as the marital deduction for property passing to a US citizen spouse and the charitable deduction for bequests to qualifying charities.
Do lifetime gifts reduce my exemption?
Yes. The estate and gift tax share one unified $15 million exemption. Taxable gifts above the $19,000 annual exclusion per recipient use up exemption during your life, leaving less for the estate at death. This calculator subtracts your prior taxable gifts from the exemption before computing the estate tax.
What is portability?
Portability lets a surviving spouse inherit the deceased spouse unused exemption, but only if the executor files a timely estate tax return (Form 706) electing it, even when no tax is owed. Without that filing, the second spouse keeps only their own $15 million. For couples near the threshold, that one filing is worth millions of sheltered dollars.
What about state estate and inheritance taxes?
They are completely separate and often bite much earlier: about a dozen states plus DC impose their own estate or inheritance taxes, some with exemptions as low as $1 million. This calculator covers federal tax only. If you live in or own property in one of those states, your planning threshold may be far below $15 million.