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Estate Tax Calculator

Calculate federal estate tax & exemptions

Federal Estate Tax

$470,000

Net to Heirs

$14,315,000

Effective Rate

3.2%

2024 Federal Estate Tax

Exemption: $13.61M (single) / $27.22M (married with portability) • Tax Rate: 40%

$

Real estate, investments, business interests, life insurance, etc.

$
$
$
$
Estate Tax
$470,000
Net to Heirs
$14,315,000
Estate Tax Calculation
Gross Estate$15,000,000
Less: Deductions-$215,000
Taxable Estate$14,785,000
Less: Exemption Used-$13,610,000
Amount Subject to Tax$1,175,000
Estate Tax (40%)$470,000

Estate Breakdown

Exemption Used$13,610,000
Taxable Amount$1,175,000
Estate Tax$470,000

Frequently Asked Questions

Q

What is the 2024 estate tax exemption?

For 2024, the federal estate tax exemption is $13.61 million per individual. Married couples can combine exemptions through portability for a total of $27.22 million. Estates below these thresholds owe no federal estate tax.

  • Individual exemption: $13.61 million (2024)
  • Married couple with portability: $27.22 million combined
  • Less than 0.1% of estates owe federal estate tax
  • Exemption scheduled to drop to ~$7 million in 2026 if TCJA expires
  • Portability must be elected on first spouse's estate tax return (Form 706)
Filing StatusExemption AmountEstate Tax on $20MEstate Tax on $30M
Single / Widowed$13,610,000$2,556,000$6,556,000
Married (with portability)$27,220,000$0$1,112,000
Q

What is the federal estate tax rate?

The federal estate tax rate is 40% on amounts exceeding the exemption. For example, a $15 million estate (single) would owe 40% on $1.39 million ($15M - $13.61M exemption) = $556,000.

Estate Value (Single)Amount Over ExemptionEstate Tax (40%)Effective Rate
$14,000,000$390,000$156,0001.1%
$16,000,000$2,390,000$956,0006.0%
$20,000,000$6,390,000$2,556,00012.8%
$30,000,000$16,390,000$6,556,00021.9%
$50,000,000$36,390,000$14,556,00029.1%
Q

What is the unlimited marital deduction?

Assets left to a surviving U.S. citizen spouse are not subject to estate tax, regardless of amount. This allows deferral of estate taxes until the surviving spouse's death.

  • Unlimited amount can pass to a surviving U.S. citizen spouse tax-free
  • Non-citizen spouses: limited to $185,000 annual exclusion (2024)
  • Qualified Domestic Trust (QDOT) required for non-citizen spouses
  • Defers tax only — survivor's estate may owe tax at their death
  • Consider using bypass/credit shelter trust to preserve both exemptions
Q

What qualifies for estate tax deductions?

Deductible items include: debts and mortgages, funeral expenses, estate administration costs, charitable bequests, and amounts left to a surviving spouse.

  • Debts and mortgages: reduce gross estate dollar-for-dollar
  • Funeral expenses: typically $7,000-$15,000 deductible
  • Charitable bequests: unlimited deduction for qualified charities
  • Administrative costs: attorney fees, executor fees, appraisals
  • State estate taxes paid are deductible on the federal return
Q

Do states have separate estate taxes?

Yes, 12 states and DC have state estate taxes with lower exemptions (often $1-5 million). States include: WA, OR, HI, MN, IL, MD, VT, CT, NY, MA, ME, and RI. Check your state's specific rules.

StateExemptionTop RateNotes
Massachusetts$2,000,00016%Lowest exemption in US
Oregon$1,000,00016%Lowest exemption in US
New York$6,940,00016%Cliff: lose exemption if estate > 105%
Washington$2,193,00020%Highest state rate in US
Connecticut$13,610,00012%Matches federal exemption
DC$4,710,80016%Adjusted annually
Q

How can I reduce estate taxes?

Strategies include: annual gift exclusion ($18,000/person in 2024), irrevocable life insurance trusts (ILIT), charitable trusts, family limited partnerships, and using the full exemption during lifetime.

  • Annual gift exclusion: $18,000/person/year (2024) — tax-free to unlimited recipients
  • ILIT: removes life insurance proceeds from taxable estate
  • Charitable Remainder Trust: income stream + tax deduction + charity benefit
  • Grantor Retained Annuity Trust (GRAT): transfer appreciation tax-free
  • Family Limited Partnership: 20-35% valuation discounts on transferred interests
  • Lifetime gifts using exemption: lock in current $13.61M before potential 2026 sunset

Example Calculations

1Single Estate of $15,000,000

Inputs

Gross Estate Value$15,000,000
Filing StatusSingle / Widowed
Debts & Mortgages$200,000
Funeral Expenses$15,000
Charitable Gifts$0
Spouse Bequest$0

Result

Federal Estate Tax$470,000
Taxable Estate$14,785,000
Exemption Used$13,610,000
Amount Over Exemption$1,175,000
Net to Heirs$14,315,000

Total deductions = $200,000 + $15,000 = $215,000. Taxable estate = $15,000,000 - $215,000 = $14,785,000. Amount over exemption = $14,785,000 - $13,610,000 = $1,175,000. Estate tax = $1,175,000 x 40% = $470,000. Net to heirs = $15,000,000 - $215,000 - $470,000 = $14,315,000.

2Married Estate of $20,000,000 With Charitable Gifts

Inputs

Gross Estate Value$20,000,000
Filing StatusMarried (with portability)
Debts & Mortgages$500,000
Funeral Expenses$20,000
Charitable Gifts$1,000,000
Spouse Bequest$0

Result

Federal Estate Tax$0
Taxable Estate$18,480,000
Exemption Used$18,480,000
Amount Over Exemption$0
Net to Heirs$18,480,000

Total deductions = $500,000 + $20,000 + $1,000,000 = $1,520,000. Taxable estate = $20,000,000 - $1,520,000 = $18,480,000. Married exemption with portability = $27,220,000. Since $18,480,000 is below the $27,220,000 exemption, estate tax = $0. Net to heirs = $18,480,000.

3High-Value Single Estate of $25,000,000 With Charitable Gifts

Inputs

Gross Estate Value$25,000,000
Filing StatusSingle / Widowed
Debts & Mortgages$300,000
Funeral Expenses$25,000
Charitable Gifts$2,000,000
Spouse Bequest$0

Result

Federal Estate Tax$3,626,000
Taxable Estate$22,675,000
Exemption Used$13,610,000
Amount Over Exemption$9,065,000
Effective Rate16.0%
Net to Heirs$19,049,000

Total deductions = $300,000 + $25,000 + $2,000,000 = $2,325,000. Taxable estate = $25,000,000 - $2,325,000 = $22,675,000. Amount over exemption = $22,675,000 - $13,610,000 = $9,065,000. Estate tax = $9,065,000 x 40% = $3,626,000. Effective rate = $3,626,000 / $22,675,000 = 16.0%. Net to heirs = $25,000,000 - $2,325,000 - $3,626,000 = $19,049,000. The $2M charitable gift saved $800,000 in estate taxes.

Formulas Used

Taxable Estate

Taxable Estate = Gross Estate - Debts - Funeral Costs - Charitable Gifts - Marital Deduction

Calculates the estate value subject to potential tax after all allowable deductions.

Where:

Gross Estate= Total value of all assets (real estate, investments, business interests, life insurance, etc.)
Marital Deduction= Unlimited deduction for assets left to surviving U.S. citizen spouse

Federal Estate Tax

Estate Tax = Max(0, Taxable Estate - Exemption) x 40%

The federal estate tax rate is a flat 40% on the amount exceeding the exemption.

Where:

Exemption= $13,610,000 per individual; $27,220,000 for married couples with portability (2024)
40%= Federal estate tax rate applied to amounts over the exemption

Net to Heirs

Net to Heirs = Gross Estate - Total Deductions - Estate Tax

The amount beneficiaries actually receive after deductions and taxes.

Where:

Total Deductions= Sum of debts, funeral costs, charitable gifts, and marital deduction
Estate Tax= Federal estate tax owed (if any)

Federal Estate Tax: Exemptions, Rates, and Planning Strategies

1

How the Federal Estate Tax Works

Fewer than 0.1% of U.S. estates — roughly 4,000 per year — owe any federal estate tax under the current $13.61 million exemption. The tax applies only to the portion of a taxable estate that exceeds this threshold, at a flat rate of 40%. For a single filer with a $15 million taxable estate, only $1.39 million is subject to tax, producing a bill of $556,000 — an effective rate of just 3.7%.

The taxable estate is calculated by subtracting allowable deductions from the gross estate. Gross estate includes real property, bank accounts, investment portfolios, business interests, life insurance proceeds, and retirement accounts. Deductions include debts, funeral expenses ($7,000–$15,000 typical), charitable bequests, and the unlimited marital deduction for assets left to a surviving U.S. citizen spouse.

Married couples can effectively double their exemption to $27.22 million through portability — but only if the executor files Form 706 for the first spouse’s estate, even when no tax is due. Missing this filing permanently forfeits the unused exemption.

*Based on 2024 federal exemption of $13.61M per individual
Estate Value (Single)Taxable AmountEstate Tax (40%)Effective Rate
$14,000,000$390,000$156,0001.1%
$16,000,000$2,390,000$956,0006.0%
$20,000,000$6,390,000$2,556,00012.8%
$30,000,000$16,390,000$6,556,00021.9%
$50,000,000$36,390,000$14,556,00029.1%
2

The 2026 Sunset: Why Planning Now Matters

The Tax Cuts and Jobs Act (TCJA) doubled the estate tax exemption from roughly $5.5 million to $11.18 million in 2018, and annual inflation adjustments pushed it to $13.61 million by 2024. Unless Congress acts, this provision sunsets on January 1, 2026, reverting the exemption to approximately $7 million per individual ($14 million for couples).

An estate worth $12 million would owe $0 in federal tax under the current exemption but roughly $2 million under the reverted threshold. This cliff creates urgency for high-net-worth individuals to execute lifetime gift strategies while the full $13.61 million exemption remains available. The IRS has confirmed through Treasury Regulation 20.2010-1(c) that gifts made under the higher exemption will not be "clawed back" even after the sunset.

Estate planning attorneys recommend reviewing all trusts, wills, and beneficiary designations before mid-2025 to ensure documents reflect the potential lower exemption. Couples relying on portability should confirm that Form 706 has been filed for any deceased spouse.

Tip: Lock in the current $13.61M exemption by making lifetime gifts before the potential 2026 sunset — the IRS has confirmed no clawback on gifts made under the higher limit.

3

State Estate Taxes: The Second Layer

12 states and the District of Columbia impose their own estate taxes, often with exemptions far below the federal level. Oregon and Massachusetts have the lowest exemptions at $1 million and $2 million respectively, meaning estates that owe zero federal tax can still face state bills of $100,000 or more.

Washington state levies the highest top rate at 20%, while most other states cap at 12–16%. New York applies a particularly harsh "cliff" rule: if an estate exceeds 105% of the exemption ($6.94 million in 2024), the entire amount — not just the excess — becomes taxable. A $7.3 million estate in New York could owe roughly $450,000 in state tax, while a $6.9 million estate owes nothing.

Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) also impose separate inheritance taxes, which are paid by the recipient rather than the estate. Maryland is the only state with both an estate tax and an inheritance tax. Use a budget calculator to plan for these potential liabilities when managing an inherited estate.

*State rates and exemptions as of 2024
StateExemptionTop RateKey Note
Oregon$1,000,00016%Lowest exemption in U.S.
Massachusetts$2,000,00016%No inflation adjustment
New York$6,940,00016%Cliff at 105% of exemption
Washington$2,193,00020%Highest top rate nationally
Connecticut$13,610,00012%Matches federal exemption
4

Tax Reduction Strategies by Estate Size

$18,000 per recipient per year — that is the 2024 annual gift exclusion amount, and it is the simplest estate-reduction tool available. A couple with three children and six grandchildren can transfer $324,000 annually ($18,000 × 9 recipients × 2 donors) without touching their lifetime exemption. Over 10 years, that removes $3.24 million from the taxable estate.

For estates between $7 million and $13.61 million, the priority is locking in the current exemption through lifetime gifts before the potential 2026 sunset. Irrevocable trusts — such as Grantor Retained Annuity Trusts (GRATs) and Spousal Lifetime Access Trusts (SLATs) — allow transferring appreciation tax-free while retaining some access to the assets.

Estates exceeding $20 million benefit most from Family Limited Partnerships (FLPs) and Charitable Remainder Trusts (CRTs). FLPs can achieve 20–35% valuation discounts on transferred interests, while CRTs provide an income stream to the donor, a charitable deduction, and ultimately benefit a qualified charity. An investment calculator can help model how these strategies affect long-term portfolio growth.

  • Annual gifts of $18,000/person/year — removes $324,000+/year for a couple with 9 recipients
  • Irrevocable Life Insurance Trust (ILIT) — removes life insurance proceeds from taxable estate entirely
  • Grantor Retained Annuity Trust (GRAT) — transfers asset appreciation tax-free over a 2–10 year term
  • Charitable Remainder Trust (CRT) — provides income stream + estate tax deduction + charity benefit
  • Family Limited Partnership (FLP) — achieves 20–35% valuation discounts on transferred interests
  • Spousal Lifetime Access Trust (SLAT) — uses both spouses’ exemptions while retaining indirect access
5

How to Use This Estate Tax Calculator

$13,610,000 is the single most important number in estate tax planning — and this calculator shows exactly how it applies to your situation. Start by entering the total gross estate value, including real estate, investments, business interests, life insurance, and retirement accounts.

Next, input deductions: outstanding debts and mortgages, estimated funeral expenses, charitable bequests, and any amounts left to a surviving spouse. The calculator applies the unlimited marital deduction automatically for spouse bequests. Select your filing status to determine whether the individual ($13.61M) or married with portability ($27.22M) exemption applies.

The results show the taxable estate, the amount over the exemption, the federal estate tax at 40%, the effective tax rate, and the net amount passed to heirs. Run multiple scenarios — for instance, compare the tax impact of a $2 million charitable bequest versus leaving the full estate to heirs. Use a retirement calculator to plan how estate distributions align with beneficiaries’ financial needs.

  1. 1

    Enter gross estate value

    Include all assets: real estate, investments, business interests, life insurance proceeds, and retirement accounts. A $500,000 home plus $14.5M in investments = $15M gross estate.

  2. 2

    Add deductions

    Input debts ($200,000 mortgage), funeral costs ($15,000 average), and charitable gifts. Each dollar deducted removes $0.40 in potential tax.

  3. 3

    Select filing status

    Choose single ($13.61M exemption) or married with portability ($27.22M). Portability requires Form 706 filed for the first deceased spouse.

  4. 4

    Review and compare scenarios

    Adjust charitable gifts or spouse bequests to see how different strategies affect the tax bill and net inheritance.

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Last Updated: Mar 26, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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