Estate Tax Calculator - Free Online Tool

Calculate your federal and state estate tax liability with full deductions, portability elections, and 10-year growth projections

The Estate Tax Calculator helps you estimate the federal and state estate tax that may be owed when an estate passes to heirs. Estate taxes are among the most complex areas of U.S. tax law, involving progressive rate schedules, annual exemption amounts, spousal portability elections, generation-skipping transfer taxes, and an entirely separate layer of state-level estate taxes in 13 jurisdictions. This free tool brings together all of these elements in one place so families, estate planners, financial advisors, and executors can understand their exposure and plan accordingly. The federal estate tax applies to the taxable estate of a U.S. citizen or resident who passes away. The taxable estate is the gross estate — the fair market value of everything the decedent owned — minus deductions for debts, funeral and administration expenses, qualifying transfers to a surviving U.S. citizen spouse (the unlimited marital deduction), and qualifying charitable bequests. The net figure is then combined with prior taxable lifetime gifts, because the estate tax and gift tax share a unified lifetime exemption under Internal Revenue Code Section 2001. For 2024, that unified exemption is $13,610,000 per individual. It rises to $13,990,000 in 2025. The One Big Beautiful Bill Act (OBBBA) extended and expanded the exemption to $15,000,000 for 2026, indexed for inflation going forward. This was a critical development because the exemptions enacted by the Tax Cuts and Jobs Act (TCJA) of 2017 were scheduled to sunset back to approximately $6–7 million at the end of 2025. The OBBBA's passage eliminated that sunset for the foreseeable future, though future Congresses could revisit these limits. For married couples, portability allows the executor of the first spouse's estate to file a Form 706 estate tax return and elect to transfer the deceased spouse's unused exclusion (DSUE) to the surviving spouse. This can effectively double the surviving spouse's exemption. For example, if a spouse with a $13,990,000 exemption passes with a $3,000,000 taxable estate, the DSUE of $10,990,000 can be added to the surviving spouse's own exemption, giving the survivor up to $27,980,000 in combined exemption. Portability is not available for the generation-skipping transfer (GST) tax exemption, which remains individual only. The generation-skipping transfer (GST) tax applies at a flat 40% rate to transfers made to grandchildren or more remote descendants (called skip persons) in excess of the GST exemption, which equals the federal estate tax exemption for the same year. GST can apply to transfers made directly during life or through trusts structured to benefit multiple generations. Our calculator incorporates GST if you enter a generation-skipping transfer amount. Thirteen U.S. jurisdictions have their own separate estate taxes: Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Their exemptions range from $1,000,000 (Oregon) to $15,000,000 (Connecticut in 2026, mirroring the federal level). New York has a unique 'cliff' effect: if the taxable estate exceeds 105% of the state exemption, the entire estate is subject to state estate tax rather than just the excess, which can produce a sudden large increase in liability. In addition to estate taxes, five states impose a separate inheritance tax paid by the heirs rather than the estate: Iowa, Kentucky, Maryland, Nebraska, and New Jersey. Maryland is the only state that imposes both. Inheritance tax rates and exemptions vary widely by the heir's relationship to the decedent. Estate planning strategies can significantly reduce or eliminate estate tax exposure. These include making annual exclusion gifts ($19,000 per recipient in 2025 and 2026), transferring assets to a surviving spouse using the unlimited marital deduction, making charitable bequests, using irrevocable life insurance trusts (ILITs) to keep life insurance proceeds out of the taxable estate, establishing grantor retained annuity trusts (GRATs) to shift appreciation out of the estate, and applying valuation discounts on closely-held business or family limited partnership (FLP) interests. Our tool lets you model many of these inputs directly. Remember that this calculator provides educational estimates. Estate tax law is highly complex and individual circumstances vary significantly. Always work with a qualified estate planning attorney and CPA to ensure your estate plan is properly structured and legally documented.

Understanding Estate Tax

The federal estate tax is a tax on the transfer of property at death. It applies to estates exceeding the lifetime exemption threshold after deductions.

How the Federal Estate Tax Works

The federal estate tax applies to the net taxable estate after subtracting debts, administration costs, marital transfers, and charitable gifts from the gross estate. Prior taxable lifetime gifts are added back to determine the cumulative amount subject to the unified rate schedule. Tax is then calculated using a 12-bracket progressive schedule ranging from 18% to 40%, and the lifetime exemption (as a unified credit) is subtracted. For most large estates above the exemption, the effective marginal rate is 40% on all amounts exceeding the threshold.

The Unlimited Marital Deduction

Assets transferred to a surviving U.S. citizen spouse are fully deductible from the taxable estate — there is no dollar limit. This means a married couple can defer all estate tax until the second spouse passes away. However, the unlimited marital deduction does not apply to transfers to non-U.S. citizen spouses. Instead, a Qualified Domestic Trust (QDOT) must be used to access a deferred marital deduction for assets left to a non-citizen spouse. Annual exclusion gifts to non-citizen spouses are limited to $185,000 (2024) rather than being unlimited.

State Estate Taxes and the NY Cliff

Thirteen jurisdictions impose their own estate taxes with much lower exemptions than the federal level. Oregon and Massachusetts both have $1,000,000 exemptions, meaning estates well below the federal threshold may owe state tax. New York's unique 'cliff' rule is particularly important: if a taxable estate exceeds 105% of the state exemption ($7,717,500 for 2026), the ENTIRE taxable estate is subject to state tax — not just the excess. This can create a cliff effect where having a slightly larger estate results in a significantly higher state tax bill. Careful planning near the NY threshold is critical.

Planning to Reduce Estate Tax

Several strategies can reduce estate tax exposure. Annual exclusion gifting ($19,000 per recipient in 2025/2026) reduces the taxable estate over time without consuming the lifetime exemption. Irrevocable Life Insurance Trusts (ILITs) keep life insurance proceeds outside the taxable estate. Grantor Retained Annuity Trusts (GRATs) allow appreciation above an IRS hurdle rate to pass to beneficiaries tax-free. Family Limited Partnerships (FLPs) and LLCs can achieve valuation discounts of 20-40% on business or real estate interests. Charitable Remainder Trusts (CRTs) provide an income stream during life and a charitable deduction that reduces the estate.

Formulas

Taxable Estate

Taxable Estate = Gross Estate − Debts − Funeral/Admin − Marital Deduction − Charitable Deduction − Valuation Discount

The taxable estate is the net estate after all allowable deductions. Prior taxable lifetime gifts are then added to determine the cumulative amount subject to the unified rate schedule.

Amount Subject to Federal Tax

Amount Subject to Tax = max(0, Taxable Estate + Prior Gifts − Federal Exemption)

The estate and gift taxes share a unified lifetime exemption. Prior taxable gifts consume part of the exemption, so they are added back before applying the exemption to the current estate.

Federal Estate Tax (top bracket)

Federal Tax = $345,800 + (Amount Over $1,000,000 × 40%)

For most large estates, the entire taxable amount exceeds $1,000,000 and is taxed at the top 40% marginal rate. The progressive brackets from 18%–40% apply to smaller amounts within the taxable range.

Effective Tax Rate

Effective Rate = Total Estate Tax ÷ Gross Estate × 100%

The effective tax rate measures total estate taxes (federal + state + GST) as a percentage of the gross estate, giving a clear picture of the overall tax burden.

Reference Tables

Federal Estate Tax Exemptions by Year

The unified lifetime exemption amounts that apply to the cumulative estate and gift tax base

Year	Individual Exemption	Married Couple (with Portability)	Top Rate
2024	$13,610,000	$27,220,000	40%
2025	$13,990,000	$27,980,000	40%
2026	$15,000,000	$30,000,000	40%

State Estate Tax Jurisdictions (2025)

13 U.S. jurisdictions with their own estate taxes — separate from and in addition to the federal estate tax

State	2025 Exemption	Top Rate	Portability
Connecticut	$13,990,000	12%	No
District of Columbia	$4,988,400	16%	No
Hawaii	$5,490,000	20%	Yes
Illinois	$4,000,000	16%	No
Maine	$7,000,000	12%	No
Maryland	$5,000,000	16%	Yes
Massachusetts	$2,000,000	16%	No
Minnesota	$3,000,000	16%	No
New York	$6,940,000	16%	No (cliff rule)
Oregon	$1,000,000	16%	No
Rhode Island	$1,802,431	16%	No
Vermont	$5,000,000	16%	No
Washington	$2,193,000	35%	No

Worked Examples

Example 1: Single Individual, No State Tax

A single individual in Texas (no state estate tax) passes in 2025 with a gross estate of $18,000,000, debts of $500,000, funeral/admin expenses of $30,000, and charitable bequests of $200,000. No prior taxable gifts.

Gross Estate: $18,000,000

Less debts: −$500,000 → Adjusted Gross Estate: $17,500,000

Less funeral/admin: −$30,000

Less charitable: −$200,000

Taxable Estate: $17,270,000

Plus prior taxable gifts: $0 → Cumulative: $17,270,000

Less 2025 federal exemption: −$13,990,000

Amount subject to tax: $3,280,000

Federal Estate Tax: $345,800 + ($2,280,000 × 40%) = $345,800 + $912,000 = $1,257,800

No state or GST tax

Effective rate: $1,257,800 ÷ $18,000,000 = 6.99%

Total federal estate tax: $1,257,800. Net estate to heirs: $16,742,200. Effective rate: 6.99%.

Example 2: Married Couple with Portability in New York

A New York resident passes in 2025 with a $12,000,000 gross estate, leaving everything to their surviving spouse (unlimited marital deduction). The spouse later has an $18,000,000 estate combining both spouses' assets. The executor elected portability on the first death. Prior taxable gifts by the second spouse: $1,000,000.

First death: Taxable estate = $0 (100% marital deduction). DSUE elected = $13,990,000.

Second death: Gross estate = $18,000,000

Taxable Estate = $18,000,000 (no remaining marital deduction)

NY state tax: $18M − $6,940,000 = $11,060,000 subject to NY tax. Exceeds 105% of NY exemption ($7,287,000), so cliff applies: $18,000,000 × 16% = $2,880,000 NY tax.

Federal: Cumulative = $18,000,000 + $1,000,000 = $19,000,000

Available exemption = $13,990,000 (own) + $13,990,000 (DSUE) = $27,980,000

Amount subject to federal: max(0, $19,000,000 − $27,980,000) = $0. No federal estate tax.

Total estate tax: $0 + $2,880,000 = $2,880,000

Thanks to portability, no federal estate tax is owed on the second death. However, New York's cliff rule triggers state estate tax of $2,880,000 on the entire estate. Net to heirs: $15,120,000.

How to Use the Estate Tax Calculator

Enter Your Estate Value and Tax Year

Choose Simple mode to enter a single gross estate total, or Detailed mode to itemize assets by category (real estate, investments, retirement accounts, business interests, etc.). Select the correct tax year — 2024 ($13.61M exemption), 2025 ($13.99M), or 2026 ($15M) — as the federal exemption amount determines whether any estate tax is owed.

Add Deductions and Prior Gifts

Enter debts and liabilities (mortgages, auto loans, credit cards), funeral and administration expenses, any charitable bequests, and the marital deduction if assets pass to a surviving U.S. citizen spouse. Enter prior taxable lifetime gifts — these are added back to compute the cumulative amount subject to the unified estate and gift tax schedule.

Configure Marital Status and State

Select your marital status. If married or widowed, check whether to apply portability (the deceased spouse's unused exemption, or DSUE) and enter the DSUE amount from the first spouse's estate. Then select your state of residence — if you live in one of the 13 taxing jurisdictions, state estate tax will be calculated automatically using state-specific exemptions and rates.

Review Results and Planning Strategies

The results show your net estate to heirs (the most important number), effective tax rate, federal and state tax breakdown, exemption usage bar, and planning strategy suggestions based on your tax exposure. Toggle the 10-year projection to see how estate value and tax liability grow over time if the estate is not reduced through planning. Export to CSV or print for use with your advisors.

Frequently Asked Questions

What is the federal estate tax exemption for 2025 and 2026?

For 2025, the federal estate tax exemption is $13,990,000 per individual ($27,980,000 for married couples using portability). For 2026, the One Big Beautiful Bill Act (OBBBA) raised the exemption to $15,000,000 per individual ($30,000,000 for couples), indexed for inflation. This resolved the uncertainty created by the Tax Cuts and Jobs Act (TCJA), whose doubled exemptions were scheduled to sunset back to approximately $6–7 million at the end of 2025. Estates below the applicable exemption owe no federal estate tax. The 40% rate applies only to the amount exceeding the exemption after all deductions are applied. Always confirm the current exemption with an estate attorney, as Congress can change these figures.

Does the unlimited marital deduction eliminate estate tax permanently?

The unlimited marital deduction defers estate tax — it does not eliminate it permanently. When assets pass to a surviving U.S. citizen spouse, no estate tax is due at that time. However, when the surviving spouse passes, the combined estate (their own assets plus everything inherited from the first spouse) may be subject to estate tax. The key planning tool is portability: the executor of the first spouse's estate can elect to pass the unused exemption (DSUE) to the surviving spouse, which can effectively double the available exemption. Without portability or a Credit Shelter Trust, the second spouse may only have their own $13.99M–$15M exemption against a much larger combined estate. The marital deduction does not apply to non-U.S. citizen spouses without a Qualified Domestic Trust (QDOT).

Which states have estate taxes, and how are they different from the federal tax?

Thirteen U.S. jurisdictions impose their own estate taxes: Connecticut, DC, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Their exemptions range from $1,000,000 (Oregon) to the federal level (Connecticut in 2026). Top marginal rates range from 12% (Connecticut, Maine) to 35% (Washington). State estate taxes are separate from the federal tax and can be owed even when no federal tax is due — for example, a $3,000,000 estate in Oregon owes Oregon estate tax even though it is well below the federal exemption. New York has a unique cliff rule: estates exceeding 105% of the state exemption are taxed on the entire taxable estate, not just the excess.

What is the Generation-Skipping Transfer (GST) tax and when does it apply?

The generation-skipping transfer (GST) tax is a flat 40% tax on transfers made to 'skip persons' — grandchildren or more remote descendants, or unrelated individuals more than 37.5 years younger than the transferor. The GST tax has its own exemption that equals the federal estate tax exemption ($13,990,000 in 2025), but this exemption is NOT portable between spouses. GST applies to direct transfers at death, taxable terminations (when a non-skip person's interest in a trust ends), and taxable distributions from trusts to skip persons. Without proper GST planning using trusts structured to skip generations, the GST tax can be layered on top of estate tax, creating a combined marginal rate approaching 64% or more.

What estate planning strategies can reduce or eliminate estate tax?

Multiple strategies can reduce estate tax exposure. Annual exclusion gifting ($19,000 per recipient in 2025/2026) removes assets from the taxable estate without consuming the lifetime exemption. An Irrevocable Life Insurance Trust (ILIT) keeps life insurance proceeds outside the estate. A Grantor Retained Annuity Trust (GRAT) transfers asset appreciation to heirs tax-free if the asset grows faster than the IRS 7520 rate. Family Limited Partnerships (FLPs) or LLCs can achieve valuation discounts of 20–40% on business or real estate interests. Charitable Remainder Trusts (CRTs) provide income during life and a charitable deduction. Credit Shelter Trusts preserve both spouses' exemptions. Each strategy has specific requirements, costs, and legal complexity — always consult a qualified estate planning attorney before implementing.

How is life insurance treated for estate tax purposes?

If you own a life insurance policy on your own life at the time of death, the death benefit is included in your gross taxable estate at full face value, even though the proceeds pass income-tax-free to beneficiaries. This is one of the most common estate tax surprises — a $1,000,000 life insurance policy can push an estate over the state exemption threshold and trigger significant state estate tax. The solution is an Irrevocable Life Insurance Trust (ILIT): the trust owns and is the beneficiary of the policy, so the proceeds are never in your estate. You can fund premium payments through annual exclusion gifts to the trust. If you transfer an existing policy to an ILIT, the three-year look-back rule under IRC Section 2035 applies — the proceeds are still included in your estate if you die within three years of the transfer.