An estate tax calculator estimates the federal estate tax by subtracting the exclusion from the value of an estate and applying the tax rate to the rest. Formula: Taxable estate = max(0, gross estate – exemption). Estimated tax = taxable estate × (rate / 100). With the 2026 exclusion of $15,000,000 and a 40% rate, a $20,000,000 estate owes about $2,000,000.
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How to use the estate tax calculator
- Enter the estate’s value after deductions.
- Enter the exemption ($15,000,000 for 2026, less any taxable gifts).
- Enter the rate (40% top federal rate).
- Read the estimated tax.
How the estate tax calculator works
The federal estate tax applies to the transfer of property at death. Only the part of an estate above the basic exclusion amount is taxed. The estate tax calculator subtracts the exemption you enter from the estate’s value and applies a flat rate to the rest:
- Taxable amount = estate value − exemption (never below zero)
- Estimated tax = taxable amount × rate
For deaths in 2026, the IRS lists a basic exclusion amount of $15,000,000, set by Public Law 119-21, and the top rate is 40%. Because the unified credit wipes out tax on the graduated brackets below the exclusion, the amount above the exclusion is effectively taxed at 40%.
Estate tax calculator worked example
An estate worth $20,000,000 with the $15,000,000 exclusion has $5,000,000 above the line. At 40%, the estimated federal estate tax is $2,000,000. An estate of $5,000,000 owes no federal estate tax.
| Taxable estate | Amount above $15M | Estimated tax at 40% |
|---|---|---|
| $5,000,000.00 | $0.00 | $0.00 |
| $15,000,000.00 | $0.00 | $0.00 |
| $16,000,000.00 | $1,000,000.00 | $400,000.00 |
| $20,000,000.00 | $5,000,000.00 | $2,000,000.00 |
| $30,000,000.00 | $15,000,000.00 | $6,000,000.00 |
| $50,000,000.00 | $35,000,000.00 | $14,000,000.00 |
Married couples and portability
Property left to a U.S. citizen spouse generally qualifies for the unlimited marital deduction, so no estate tax is due at the first death. The surviving spouse can also elect portability, adding the deceased spouse’s unused exclusion to their own. To make the election, the executor must file Form 706, even if no tax is owed. A couple using both exclusions can pass up to $30,000,000 in 2026 without federal estate tax.
What reduces the taxable estate
- Debts, mortgages and funeral expenses
- Estate administration costs
- Bequests to a surviving spouse (marital deduction)
- Bequests to qualifying charities (charitable deduction)
The gross estate includes cash, investments, real estate, business interests, retirement accounts and often life insurance you own. The estate tax calculator uses whatever value you enter, so enter the estate after deductions for a closer estimate.
Lifetime gifts
The gift and estate taxes share one lifetime exclusion. In 2026, you can give up to $19,000 per recipient without using any of it. Larger gifts require a gift tax return and reduce the exclusion available at death, although tax is not owed until lifetime gifts and the estate together exceed the exclusion. If you made large taxable gifts, subtract them from the exemption you enter.
State estate and inheritance taxes
Some states charge their own estate tax, often with exemptions far below the federal amount, and a few charge an inheritance tax paid by the people who inherit. An estate well under the federal exclusion can still owe state tax. Check your state revenue department, and run the estate tax calculator a second time with your state’s exemption and rate for a rough state estimate.
Filing and deadlines
Form 706 is generally due nine months after the date of death, with a six-month extension available for filing. The executor is responsible for filing and paying the tax from the estate. Because estate rules are complex, the estate tax calculator result is only a starting point; an estate planning attorney or tax professional can account for trusts, valuation discounts and state rules.
Estimates for education only, not financial advice. Your lender’s figures are final.
How the exclusion has changed
The exclusion has risen sharply over time. The IRS table shows $5,000,000 for deaths in 2011, $11,180,000 in 2018, $13,990,000 in 2025 and $15,000,000 in 2026. Under P.L. 119-21 the amount is indexed for inflation in later years, so check the IRS figure for the year of death before relying on an older number.
Related converters and calculators
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- Income tax calculator: income tax
- Retirement calculator: retirement
- Present value calculator: value
- ROI calculator: returns
Sources
IRS: What’s new — Estate and gift tax; IRS Rev. Proc. 2025-32 (2026 inflation adjustments).
Formula and method
Taxable estate = max(0, gross estate - exemption). Estimated tax = taxable estate × (rate / 100).
Single exemption and a flat rate you enter. Not graduated federal estate brackets, state estate/inheritance tax, or marital deduction planning.
Questions about this calculator
What is the 2026 estate tax exemption?
$15,000,000 per person.
What is the estate tax rate?
The top rate is 40%.
Can married couples combine exemptions?
Yes, through portability, up to $30,000,000 in 2026.
What is the 2026 annual gift exclusion?
$19,000 per recipient.
Do states have estate taxes?
Some do, often with lower exemptions.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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