Estate Tax Calculator
Estimate your federal estate tax liability using 2026 exemption amounts, marital & charitable deductions, and progressive tax brackets from 18% to 40%.
Federal Estate Tax Estimator
🏠 Gross Estate Assets
📄 Deductions & Debts
🛡️ Exemption & Filing
📊 Estate Tax Analysis
📊 Estate Breakdown
📈 Tax Bracket Breakdown
| Bracket Range | Rate | Taxable in Bracket | Tax from Bracket |
|---|
Understanding Federal Estate Tax
The federal estate tax is a tax on the transfer of property at death. It applies to estates whose value exceeds the lifetime exemption amount. Only about 0.1% of estates owe federal estate tax, but for those that do, proper planning can save millions.
- Gross Estate: The total fair market value of everything you own at the time of death — real estate, investments, retirement accounts, life insurance, personal property, and business interests.
- Deductions: Debts, mortgages, funeral expenses, administration costs, marital deductions (unlimited for U.S. citizen spouses), and charitable bequests reduce the gross estate.
- Taxable Estate: Gross estate minus deductions. The unified credit (lifetime exemption) is then applied before calculating the tax owed.
- Portability: A surviving spouse can elect to use their deceased spouse's unused exemption (DSUE), effectively doubling the exemption for married couples.
- Unified Credit: The estate and gift tax share a single lifetime exemption. Taxable gifts made during life reduce the exemption available at death.
2026 Federal Estate Tax Brackets
The federal estate tax uses a progressive rate structure ranging from 18% to 40%. The tax is computed on the full taxable estate, then the unified credit is subtracted:
| Taxable Amount Over | But Not Over | Base Tax | Rate on Excess |
|---|---|---|---|
| $0 | $10,000 | $0 | 18% |
| $10,000 | $20,000 | $1,800 | 20% |
| $20,000 | $40,000 | $3,800 | 22% |
| $40,000 | $60,000 | $8,200 | 24% |
| $60,000 | $80,000 | $13,000 | 26% |
| $80,000 | $100,000 | $18,200 | 28% |
| $100,000 | $150,000 | $23,800 | 30% |
| $150,000 | $250,000 | $38,800 | 32% |
| $250,000 | $500,000 | $70,800 | 34% |
| $500,000 | $750,000 | $155,800 | 37% |
| $750,000 | $1,000,000 | $248,300 | 39% |
| $1,000,000 | — | $345,800 | 40% |
Note: The unified credit offsets tax on the first $13.61M (2026). Only estates exceeding the exemption actually owe tax. The effective rate is typically well below the top 40% marginal rate.
Estate Tax Calculation Formula
The estate tax is computed in several steps:
Where Taxable Estate = Gross Estate − Deductions (marital, charitable, debts, expenses)
Estate Tax FAQ
What is the 2026 estate tax exemption?
+For 2026, the federal estate tax exemption is $13.61 million per individual (indexed for inflation). Married couples using portability can shield up to $27.22 million. However, if the TCJA sunsets, this could drop to approximately $7 million per person.
Is estate tax the same as inheritance tax?
+No. Estate tax is paid by the estate before distribution. Inheritance tax (levied by some states but not the federal government) is paid by the recipients. Six states currently have inheritance taxes: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
What is portability?
+Portability allows a surviving spouse to use their deceased spouse’s unused estate tax exemption (called DSUE). This effectively doubles the exemption for married couples. To elect portability, the executor must file an estate tax return (Form 706) for the first spouse to die, even if no tax is owed.
How do lifetime gifts affect the estate tax?
+The estate and gift taxes share one unified exemption. Taxable gifts (those above the annual exclusion of $18,000/person in 2024) reduce your available estate tax exemption at death. The tax is calculated on the combined total of lifetime taxable gifts plus the taxable estate.
What happens when the TCJA sunsets?
+The Tax Cuts and Jobs Act (TCJA) roughly doubled the estate tax exemption. If it sunsets after 2025 without extension, the exemption could revert to approximately $7 million (inflation-adjusted from the pre-TCJA $5.49M). This would expose millions more estates to the tax. Use the “2026+ Sunset” option in this calculator to model that scenario.
How can I reduce my estate tax?
+Common strategies include: charitable giving, irrevocable life insurance trusts (ILITs), annual gift exclusions ($18K/person), spousal lifetime access trusts (SLATs), grantor retained annuity trusts (GRATs), family limited partnerships, and simply leaving everything to your spouse (unlimited marital deduction). Consult an estate planning attorney for strategies specific to your situation.