Estate Tax Calculator
Calculate potential federal estate tax liability and plan your estate strategy
The estate tax calculator helps you estimate the federal estate tax that may be owed on your estate. Use this tool to understand exemptions, calculate potential tax liability, and plan effective estate transfer strategies for your beneficiaries.
Estate Assets
Estate Deductions
Lifetime Gifts
Estate Tax Calculation
Enter estate information to calculate potential tax liability
Common Estate Scenarios
Moderate Estate
$5M estate with typical assets
Large Estate
$20M estate with business interests
Married Couple
$15M estate with marital deduction
How Estate Tax Works
Estate Tax Calculation
The federal estate tax is calculated using this process:
- Gross Estate: Total value of all assets owned at death
- Deductions: Subtract debts, expenses, charitable gifts, and marital transfers
- Adjusted Gross Estate: Gross estate minus allowable deductions
- Add Lifetime Gifts: Include taxable gifts made during lifetime
- Apply Exemption: Subtract federal exemption amount
- Calculate Tax: Apply 40% rate to taxable amount
- Credits: Subtract gift tax previously paid
Key Exemptions & Deductions
Federal Exemption (2024): $13.61 million per person
Unlimited Marital Deduction: Assets passing to surviving U.S. citizen spouse
Charitable Deduction: Gifts to qualified charitable organizations
Administrative Expenses: Funeral costs, legal fees, executor compensation
Debts: Outstanding mortgages, loans, and other legitimate debts
Note: Exemption amounts are scheduled to decrease in 2026 unless extended by Congress.
Example Calculation
Estate Details
Gross Estate: $20,000,000
- Real estate: $8,000,000
- Investment accounts: $7,000,000
- Business interests: $3,000,000
- Life insurance: $2,000,000
Deductions: $1,500,000
- Outstanding debts: $1,200,000
- Funeral/admin expenses: $300,000
Tax Calculation
Adjusted Gross Estate: $18,500,000
Federal Exemption (2024): -$13,610,000
Taxable Estate: $4,890,000
Estate Tax (40%): $1,956,000
Effective Rate: 9.78% of gross estate
Frequently Asked Questions
Do most estates pay federal estate tax?
No, due to the high exemption amount ($13.61 million in 2024), less than 1% of estates owe federal estate tax. However, some states have their own estate or inheritance taxes with lower exemptions.
What happens to the exemption in 2026?
The current high exemption amounts are scheduled to "sunset" in 2026, reverting to approximately $6-7 million per person (adjusted for inflation). This makes estate planning particularly important for larger estates.
How can I reduce estate tax liability?
Common strategies include lifetime gifting, charitable giving, irrevocable life insurance trusts, family limited partnerships, and grantor retained annuity trusts (GRATs). Consult with an estate planning attorney and tax professional.
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