SamCalculator

Estate Tax Calculator

Estimate federal estate tax liability by entering estate assets, debts, deductible expenses, and lifetime gifts. Compare your taxable estate against current federal estate tax exemptions and rates.

Modify the values and click Calculate

All amounts in USD. Defaults are $0.

Assets

Fair-market value of everything owned at death

$
$
$
$
$
$

Death-benefit payable to the estate

$

Collectibles, business interests, etc.

Liability, Costs, and Deductibles

Reduce the gross estate before the exemption is applied

$
$
$
$

Lifetime Gifted Amount

Counts against the unified lifetime gift & estate tax exemption

$

$0

Total Assets

$0

Total Deductions

$0

Net Estate

$15,000,000

2026 Exemption

U.S. Estate and Gift Tax Exemptions and Tax Rates

Lifetime exemption and top federal estate tax rate by year

YearLifetime ExemptionTax Rate
2001$675,00055%
2002$1 million50%
2003$1 million49%
2004$1.5 million48%
2005$1.5 million47%
2006$2 million46%
2007$2 million45%
2008$2 million45%
2009$3.5 million45%
2010Repealed0%
2011$5 million35%
2012$5.12 million35%
2013$5.25 million40%
2014$5.34 million40%
2015$5.43 million40%
2016$5.45 million40%
2017$5.49 million40%
2018$11.18 million40%
2019$11.4 million40%
2020$11.58 million40%
2021$11.7 million40%
2022$12.06 million40%
2023$12.92 million40%
2024$13.61 million40%
2025$13.99 million40%
2026SELECTED$15 million40%

The lifetime exemption is the cumulative amount you can transfer (during life or at death) free of federal estate and gift tax. The estate tax was repealed for 2010 deaths only. Rates shown are the top federal estate tax rate; lower estates may face graduated rates below the top bracket. Sources: IRS Estate & Gift Tax pages, Form 706 instructions, CRS report R42959.

What Is Estate Tax?

The federal estate tax is a transfer tax imposed on the right to pass property at death. It applies to the fair-market value of everything you own or have certain interests in on the date you die — real estate, investments, retirement accounts, life-insurance death benefits payable to the estate, business interests, and personal property. Only the portion of the taxable estate that exceeds the federal lifetime exemption is taxed, and the top federal rate is currently 40%.

Because the U.S. estate and gift tax system is unified, taxable lifetime gifts above the annual exclusion count against the same lifetime exemption that protects your estate at death. That is why this calculator asks for both estate values and the total amount you have gifted tax-free during your lifetime.

How Estate Tax Works

Add up the gross estate

All assets at fair-market value as of the date of death (or the alternate valuation date six months later) — real estate, securities, business interests, retirement accounts, vehicles, collectibles, and certain life-insurance proceeds.

Subtract allowable deductions

Debts of the decedent, funeral and administration expenses, claims against the estate, charitable bequests, state estate or inheritance taxes, and the unlimited marital deduction for transfers to a U.S. citizen spouse.

Add taxable lifetime gifts

Lifetime gifts above the annual exclusion (and previously reported on Form 709) are added back so the IRS can apply a single, unified lifetime exemption across both regimes.

Apply the lifetime exemption

The taxable estate is reduced by the federal lifetime exemption for the year of death. Only the amount that exceeds the exemption is subject to estate tax.

Tax at graduated rates

Form 706 applies a graduated rate schedule up to a top marginal rate (40% currently). This calculator uses the top rate as a simplified estimate and is intended for planning, not return preparation.

State taxes apply separately

About a dozen U.S. states impose their own estate tax and a few impose an inheritance tax. State exemptions are usually lower than the federal exemption, so a moderate estate can owe state tax even with no federal tax.

Federal Estate Tax Explained

The federal estate tax is administered by the IRS through Form 706 (United States Estate and Generation-Skipping Transfer Tax Return). For 2026 deaths, the federal lifetime exemption is $15 million per individual, and married couples can effectively double that via portability (DSUE) and proper planning. The top federal estate tax rate has been 40% since 2013.

Because the exemption is so high, only a very small percentage of U.S. estates pay federal estate tax in a given year. The Tax Policy Center has estimated fewer than 0.1% of estates owe federal estate tax annually under current law. State estate or inheritance taxes are a much more common concern for middle-market estates.

What Assets Are Included In An Estate?

01

Real estate

Primary residence, vacation homes, rental and commercial property — at fair-market value on the date of death.

02

Financial accounts

Brokerage accounts, mutual funds, ETFs, bonds, savings accounts, checking accounts, CDs, and money-market funds.

03

Retirement accounts

Traditional and Roth IRAs, 401(k), 403(b), 457, SEP and SIMPLE IRAs, and pension lump sums payable to the estate.

04

Life insurance

Death benefits payable to the estate, and policies on which the decedent retained incidents of ownership.

05

Business interests

Closely held businesses, partnership interests, LLC membership interests, and farm or ranch operations.

06

Personal property

Vehicles, boats, art, jewellery, collectibles, intellectual property, and household goods of meaningful value.

What Can Be Deducted From An Estate?

  • •Debts of the decedent — mortgages, personal loans, credit-card balances, business obligations, and other enforceable claims against the estate.
  • •Funeral & administration — burial, cremation, headstone, executor fees, attorney fees, court fees, accounting fees, and appraisal costs.
  • •Charitable bequests — the full value of gifts to qualifying 501(c)(3) charities under the unlimited charitable deduction.
  • •Marital deduction — unlimited transfers to a surviving U.S. citizen spouse (limited marital deduction with a QDOT for non-citizen spouses).
  • •State death taxes — estate or inheritance taxes paid to U.S. states.
  • •Casualty & theft losses — uncompensated losses suffered during estate administration.

Core Formulas

Net Estate

Net Estate = Assets − Liabilities − Deductible Expenses

Total fair-market value of assets minus debts and allowable deductions such as funeral, administration, and charitable contributions.

Taxable Estate

Taxable Estate = Net Estate + Lifetime Gifts

Adds back taxable lifetime gifts so the unified gift and estate tax exemption can be applied to a single combined base.

Estate Tax Due

Estate Tax = max(0, Taxable Estate − Exemption) × Applicable Rate

The amount above the exemption is taxed at the federal rate for the year of death. This calculator uses the top marginal rate as a planning estimate.

Estate Tax vs Inheritance Tax

Estate tax

Levied on the estate before assets are distributed. Paid by the estate's executor from estate funds. The federal government and several U.S. states impose estate taxes.

Inheritance tax

Levied on the heir who receives the inheritance. Rates often depend on the heir's relationship to the decedent. Only a few states (Iowa is phasing out, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) impose an inheritance tax.

How Lifetime Gifts Affect Estate Taxes

The annual gift tax exclusion lets you give up to a set amount per recipient per year (indexed for inflation — $19,000 per recipient for 2025 and $20,000 for 2026) with no gift-tax reporting and no use of your lifetime exemption. Gifts above the annual exclusion are reported on Form 709 and reduce your remaining lifetime exemption dollar for dollar.

Because the system is unified, every dollar of taxable lifetime gift reduces the exemption available for your estate at death. This calculator adds your reported lifetime gifts back to the net estate before applying the year's exemption, mirroring how Form 706 reconciles the two regimes.

Historical Changes In Estate Tax Laws

The federal estate tax has shifted dramatically over the past 25 years. The 2001 exemption was just $675,000, with a top rate of 55%. After the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the exemption climbed gradually and the rate fell. The estate tax was fully repealed for 2010 deaths, then reinstated under the 2010 Tax Relief Act with a $5 million exemption and a 35% rate.

The Tax Cuts and Jobs Act of 2017 (TCJA) doubled the exemption beginning in 2018 (~$11.18M per individual), and that level has continued to be indexed for inflation. For 2026, the exemption is $15 million per individual following recent legislation that locked in the higher level. The top rate has stayed at 40% since 2013.

Use the year selector and table above to compare any year between 2001 and 2026.

Reducing Estate Tax Liability

Lifetime gifting

Use the annual exclusion to move appreciating assets out of your estate gift-tax-free.

Irrevocable trusts

ILITs for life insurance, GRATs and IDGTs for appreciating assets, and SLATs for spousal benefit.

Charitable giving

Donor-advised funds, charitable remainder trusts, and bequests use the unlimited charitable deduction.

Marital deduction

Unlimited transfers to a U.S. citizen spouse defer estate tax until the second death.

Portability (DSUE)

Elect to carry over the unused exemption from a deceased spouse on a timely Form 706.

Valuation discounts

Minority interest and lack-of-marketability discounts may apply to closely held business interests.

Common Estate Tax Mistakes

  • ×Forgetting that life insurance is included in the estate when the decedent owned the policy.
  • ×Ignoring state estate or inheritance taxes — many states have exemptions well below the federal threshold.
  • ×Failing to file Form 706 to elect portability of the unused spousal exemption (DSUE).
  • ×Not updating beneficiary designations on retirement accounts and life insurance — they override the will.
  • ×Making large gifts without filing Form 709 to document the use of the lifetime exemption.
  • ×Assuming the current high exemption will stay in place — laws change with each new Congress.

Important disclaimer

This calculator provides estimates only. Federal and state estate-tax laws change frequently, and actual estate tax liability depends on estate structure, trusts, deductions, legal planning strategies, and applicable jurisdiction. Users should consult a qualified estate planning attorney or tax professional before relying on any number produced here. Nothing on this page is legal, tax, or financial advice.

Built for U.S. residents planning intergenerational transfers.

Methodology cross-checked against IRS Form 706 instructions, the IRS Estate & Gift Tax pages, and CRS report R42959. See our methodology and editorial policy. Pair this estimate with our retirement calculator and investment calculator for a fuller wealth plan.

Frequently Asked Questions

Estate tax is a federal transfer tax on the fair-market value of property owned at death. It is paid by the estate before assets are distributed to heirs. The current top federal rate is 40%, and only the portion of the taxable estate that exceeds the federal lifetime exemption is taxed. Most U.S. states do not impose a separate estate tax, but about a dozen do, often with much lower exemption thresholds than the federal $15 million 2026 amount.

The gross estate includes everything the decedent owned or had certain interests in: real estate, brokerage and bank accounts, retirement accounts (traditional/Roth IRA, 401(k), 403(b)), life-insurance death benefits payable to the estate, business interests, vehicles, collectibles, intellectual property, and personal property. Assets are valued at fair-market value on the date of death (or the alternate valuation date six months later).

The federal lifetime exemption is the cumulative amount you can transfer free of federal estate and gift tax — during your life or at death. For 2026 it is $15 million per individual under current law. A surviving spouse may add the unused exemption of a deceased spouse (portability / DSUE) by filing Form 706 on time, effectively doubling protection for married couples with proper planning.

The U.S. system is unified: lifetime taxable gifts (gifts above the annual exclusion) and estate transfers share one lifetime exemption. Gifts above the annual exclusion are reported on Form 709 and reduce the exemption available at death dollar for dollar. This calculator adds your reported lifetime gifts back to the net estate before applying the year's exemption, mirroring how Form 706 reconciles the two.

Taxable estate value is the gross estate minus allowable deductions (debts, funeral, administration, charitable bequests, marital deduction, state death taxes) plus adjusted taxable lifetime gifts. The taxable estate is the base against which the lifetime exemption is applied. Only the amount above the exemption is subject to federal estate tax at graduated rates up to a top marginal rate (40% currently).

Common deductions include debts of the decedent (mortgages, loans, credit cards), funeral and administration expenses (executor and attorney fees, court costs, appraisals), claims against the estate, charitable bequests under the unlimited charitable deduction, transfers to a U.S. citizen spouse under the unlimited marital deduction, and state estate or inheritance taxes paid. Casualty and theft losses during administration may also be deductible.

No. Estate tax is paid by the estate before distribution and is based on the value of the estate. Inheritance tax is paid by the heir who receives the inheritance and often varies with the heir's relationship to the decedent — closer relatives typically pay lower rates. The U.S. federal government imposes only an estate tax, but a few states (e.g., Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) impose an inheritance tax.

No. With the federal lifetime exemption at $15 million per individual for 2026, only a very small fraction of U.S. estates owe federal estate tax — historically fewer than one in a thousand. State estate or inheritance taxes are far more common for middle-market estates because state exemptions are usually much lower (Oregon's is $1 million, Massachusetts and Washington start at $2 million).

The exemption is indexed annually for inflation, so it ticks up most years. Bigger changes happen when Congress passes legislation — EGTRRA in 2001, the 2010 Tax Relief Act, the Tax Cuts and Jobs Act of 2017 (which doubled the exemption), and recent legislation that locked the exemption at $15 million for 2026 are all examples. The historical table above shows the full year-by-year history from 2001 to 2026.

Yes — for any estate near or above the federal or state exemption, or for any household that wants a will, trust, beneficiary review, or tax-efficient gifting strategy. A qualified estate planning attorney or CPA can model state-specific rules, design trusts (ILITs, GRATs, SLATs, charitable trusts), coordinate Form 706 portability filings, and integrate estate planning with retirement, gifting, and charitable goals. This calculator is an educational starting point, not a substitute for professional advice.

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