Estate Tax Calculator

The United States federal estate tax is an excise transfer tax levied on the net fair market value of property transferred upon an individual's death under Chapter 11 of the Internal Revenue Code. Administered by the Internal Revenue Service (IRS), the estate tax operates within a unified transfer tax framework alongside the federal gift tax and generation-skipping transfer tax (GSTT).

Under current statutory provisions, estates are protected by a historically high basic exclusion amount of $13.61 million per decedent (or $27.22 million for a married couple electing the Deceased Spousal Unused Exclusion, or DSUE, portability on IRS Form 706). Only net worldwide assets exceeding this statutory threshold are subject to taxation. For taxable amounts exceeding the exemption, the federal estate tax rate begins at 18% and rapidly climbs to a top statutory marginal rate of 40% on amounts exceeding $1,000,000 over the basic exclusion.

In addition, an unlimited marital deduction shields transfers between citizen spouses from immediate estate tax. Non-resident aliens holding US-situs property (such as US real estate or US corporate stock) receive a far lower statutory exemption of only $60,000, creating severe cross-border exposure. Explore our detailed Federal Estate Planning & Form 706 Guide, review beneficiary tax impacts in our Inheritance & Beneficiary Income Tax Guide, and inspect gift limits in our Federal Tax Brackets Guide.

Estimate your gross estate value, applied basic exclusion, and potential estate tax liability:

1. Enter Gross Estate Value: Input the estimated fair market value of all worldwide assets (real estate, cash accounts, publicly traded securities, closely held businesses, retirement balances, life insurance proceeds owned by decedent, and personal property) in US Dollars ($).
2. Select Marital Status:
   • Single Decedent: Applies the individual basic exclusion amount of $13.61 million.
   • Married Couple: Applies the combined basic exclusion amount of $27.22 million (reflecting DSUE spousal portability election).
3. Click Calculate: Instantly view your taxable estate excess, estimated federal estate tax liability, and effective tax rate across your entire estate.

The calculation output provides an itemized summary under Form 706 computation rules:

Federal estate tax applies under Section 2001 of the Internal Revenue Code:

Examine three realistic estate profiles evaluated under current IRS exclusion thresholds:

• Substantial Exclusion Cushion: The $13.61M per individual ($27.22M married) basic exclusion ensures that over 99.8% of American estates owe zero federal estate tax.
• Spousal Portability (DSUE): Surviving spouses can claim the unused exemption of the deceased spouse simply by filing a timely informational IRS Form 706, doubling family wealth protection.
• Step-Up in Basis: Inherited assets (such as stocks and real estate) receive a stepped-up fair market value basis at death under IRC Section 1014, completely eliminating built-in lifetime capital gains tax for heirs.
• Annual Gift Tax Exclusion: Individuals can gift up to $18,000 per recipient per year ($36,000 for married couples splitting gifts) without reducing their lifetime estate exclusion.

• 2026 TCJA Sunset Risk: Unless Congress extends current legislation, the TCJA doubled estate exclusion will sunset on December 31, 2025, cutting the basic exclusion approximately in half (to ~$7 million per individual, adjusted for inflation).
• State Estate & Inheritance Taxes: 12 states plus the District of Columbia impose separate state estate taxes with much lower exemption thresholds (e.g., Oregon $1M, Massachusetts $2M, New York ~$6.94M).
• Non-Citizen Spouse Restrictions: The unlimited marital deduction does not apply to non-citizen surviving spouses unless assets are placed in a Qualified Domestic Trust (QDOT).

The statutory basic exclusion and rate brackets enforced by the IRS are outlined below:

• Failing to File Form 706 for Portability: Even if no tax is owed on the first spouse's death, failing to file Form 706 within statutory deadlines forfeits the deceased spouse's unused $13.61M exclusion.
• Owning Life Insurance Personally: Life insurance proceeds from policies owned by the decedent are included in the gross estate for estate tax purposes, often pushing an estate over the exclusion limit (solvable with an Irrevocable Life Insurance Trust / ILIT).
• Ignoring State-Level Exemption Cliffs: Failing to plan for state-level estate taxes in states like Washington, New York, or Massachusetts can result in surprise six-figure state tax bills despite zero federal tax owed.

• IRS Estate Tax Portal — Official Basic Exclusion Guidelines & Deadlines
• About Form 706 — United States Estate (and Generation-Skipping Transfer) Tax Return
• IRS Estate Tax FAQs — Portability, Marital Deductions & Valuation Rules