The inheritance tax calculator helps you estimate federal estate tax and state inheritance or estate tax obligations for 2026. The federal estate tax only applies to estates above $15,000,000, but many states have much lower exemptions. Understanding both levels is essential for estate planning.
Federal Estate Tax Calculation
Assets passing to spouse (unlimited deduction)
Lifetime gifts above annual exclusion (Form 709)
State Inheritance Tax
For informational purposes only. Estate and inheritance tax laws are complex and subject to change. Consult an estate planning attorney for personalized advice.
Understanding Estate and Inheritance Taxes
Estate and inheritance taxes are among the most complex areas of US tax law. This calculator provides estimates for both the federal estate tax and state-level inheritance taxes.
Federal Estate Tax
The federal estate tax only affects very wealthy estates — those above approximately $15,000,000 (2026). The tax is paid by the estate before assets are distributed to heirs. Key deductions include the unlimited marital deduction (assets to a US citizen spouse) and charitable bequests. After deductions, the taxable estate above the exemption is taxed at rates from 18% to 40%.
State Inheritance Tax
Unlike the federal estate tax which applies to the estate as a whole, state inheritance taxes are paid by the beneficiary based on what they receive. Six states have inheritance taxes: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Rates and exemptions vary by state and by the beneficiary's relationship to the deceased — spouses are almost always exempt, and many states exempt children.
Estate Planning Strategies
Common strategies to reduce estate taxes include: gifting assets during your lifetime (using the annual $19,000 exclusion per recipient), charitable giving, irrevocable life insurance trusts (ILITs), and family limited partnerships. Always work with an estate planning attorney for strategies specific to your situation.
FAQ
Is this inheritance tax calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
Is my data private?
Absolutely. All calculations happen in your browser. No data is sent to any server.
What is the federal estate tax exemption for 2026?
For 2026, the federal estate tax exemption is approximately $15,000,000 per individual. Estates below this threshold owe no federal estate tax. The exemption is shared with the lifetime gift tax exemption.
Which states have inheritance or estate tax?
About 17 states plus Washington D.C. have their own estate or inheritance taxes. Some states tax the estate (before distribution), while others tax the inheritor. State exemptions are often much lower than the federal exemption.
What is the difference between estate tax and inheritance tax?
Estate tax is levied on the total estate before distribution and is paid by the estate. Inheritance tax is levied on what each beneficiary receives. A few states have inheritance tax; most that tax estates use estate tax.
Do spouses pay inheritance tax?
Generally no. Assets passed to a surviving US citizen spouse are exempt from federal estate tax through the unlimited marital deduction. Many states also exempt spousal inheritance.