The federal estate tax is a 40% tax on the taxable portion of your estate above the exemption threshold — $13.61 million per individual in 2026 ($27.22 million for married couples). Most estates owe nothing, but those above the threshold face significant tax exposure without proper planning.
Step 1: Gross Estate Assets
Step 2: Deductions
Unlimited deduction for assets passing to US citizen spouse
Estate Tax Calculation (2026)
State Estate Tax Warning
12 states and Washington DC have separate estate taxes with lower exemptions:
State estate tax rates vary from 7-20%. Consult an estate attorney if your estate exceeds your state's threshold.
No Federal Estate Tax Owed
How to Use the Federal Estate Tax Estimator
The estate tax estimator calculates whether your estate will owe federal estate tax by comparing your taxable estate to the current exemption. Most Americans owe no estate tax — but those with large estates need to plan strategically.
Step 1: List All Assets
Enter the fair market value of everything you own: real estate (use current market value, not purchase price), brokerage accounts, retirement accounts (IRAs and 401(k)s are fully included at face value — not after-tax), life insurance proceeds if you are the policy owner, business interests, and other personal property.
Step 2: Apply Deductions
The most powerful deduction is the marital deduction: assets passing to a US citizen spouse are 100% deductible with no limit. This means most married couples can effectively defer all estate tax until the second spouse dies. Also deduct outstanding debts, mortgages, funeral costs, and charitable bequests.
The 2026 Estate Tax Exemption
The 2026 federal estate tax exemption is $13.61 million per individual. For married couples, the portability election allows the surviving spouse to use the deceased spouse's unused exemption — providing up to $27.22 million combined. Only the taxable estate above the exemption is subject to the 40% tax rate.
Planning Strategies
Annual gifting: Give up to $19,000 per recipient per year (2026 gift tax annual exclusion) tax-free, reducing your taxable estate over time. Irrevocable life insurance trust (ILIT): Moving life insurance into a trust removes the proceeds from your estate. Charitable trusts: Charitable remainder trusts (CRTs) and donor-advised funds reduce the estate while providing income. Portability election: Surviving spouses must file an estate tax return to preserve the deceased spouse's unused exemption — even if no tax is owed.
FAQ
Is this estate tax estimator free?
Yes, completely free with no signup or account required. All calculations run locally in your browser. No financial data is transmitted.
What is the federal estate tax exemption for 2026?
The federal estate tax exemption for 2026 is $13.61 million per individual. For married couples, the portability provision allows a combined exemption of $27.22 million if properly elected. Assets passed to a surviving spouse qualify for an unlimited marital deduction.
What is the federal estate tax rate?
The federal estate tax rate is a flat 40% on the taxable estate — the amount above the exemption after deductions. For example, if your taxable estate is $15 million, only $1.39 million (above the $13.61M exemption) is subject to tax, resulting in approximately $556,000 in federal estate tax.
What assets are included in a gross estate?
The gross estate includes almost everything you own at death: real estate, bank and investment accounts, retirement accounts (IRAs, 401k), life insurance proceeds (if you own the policy), business interests, vehicles, jewelry, and other personal property. Jointly held property is included based on your fractional ownership.
What deductions reduce the estate tax?
Key deductions include: (1) Marital deduction — unlimited transfer to US citizen surviving spouse, (2) Charitable bequests — 100% deductible, (3) Debts and mortgages owed at death, (4) Funeral expenses, and (5) Administrative expenses of settling the estate.
Does the estate tax exemption sunset?
Yes. The current elevated exemption ($13.61M per person) was established by the Tax Cuts and Jobs Act of 2017 and is scheduled to sunset to approximately $7 million per person (inflation-adjusted) at the end of 2025 — unless Congress acts. Planning ahead is critical for estates near the lower threshold.
Do states have their own estate taxes?
Yes. Twelve states plus Washington DC have separate estate taxes with lower exemptions, ranging from $1 million (Oregon, Massachusetts) to $5.93 million (Connecticut). State estate tax rates vary from 7-20%. If you live in a state with an estate tax, your estate could owe state tax even if no federal estate tax is owed.
How is estate tax different from inheritance tax?
Estate tax is paid by the estate before assets are distributed to heirs. Inheritance tax is paid by the beneficiary who receives assets. The US has a federal estate tax but no federal inheritance tax. Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) have inheritance taxes — Maryland has both.