Disclaimer: This calculator provides estimates for educational purposes only and is not financial, investment, tax, or legal advice. Projections rely on assumptions about contributions, rates of return, inflation, and tax law that are uncertain and subject to change, and actual results will differ. Past performance does not guarantee future results, and no specific investment outcome is implied or guaranteed. Tax figures shown are estimates only and are not a substitute for official IRS guidance, current tax tables, or a properly filed tax return. Consult a licensed financial advisor, certified public accountant, or tax professional for guidance specific to your financial situation before making any decisions.
Frequently Asked Questions
Q
What is the 2026 estate tax exemption?
For 2026, the federal estate tax exemption is $15 million per individual. Married couples can combine exemptions through portability for a total of $30 million. Estates below these thresholds owe no federal estate tax.
Individual exemption: $15 million (2026), indexed for inflation from 2027
Married couple with portability: $30 million combined
Less than 0.1% of estates owe federal estate tax
The scheduled 2026 drop to ~$7 million was repealed - the $15M exclusion is permanent
Portability must be elected on first spouse's estate tax return (Form 706)
Filing Status
Exemption Amount
Estate Tax on $20M
Estate Tax on $40M
Single / Widowed
$15,000,000
$2,000,000
$10,000,000
Married (with portability)
$30,000,000
$0
$4,000,000
Q
What is the federal estate tax rate?
The federal estate tax rate is 40% on amounts exceeding the exemption. For example, a $20 million estate (single) would owe 40% on $5 million ($20M - $15M exemption) = $2,000,000.
Estate Value (Single)
Amount Over Exemption
Estate Tax (40%)
Effective Rate
$14,000,000
$0
$0
0.0%
$16,000,000
$1,000,000
$400,000
2.5%
$20,000,000
$5,000,000
$2,000,000
10.0%
$30,000,000
$15,000,000
$6,000,000
20.0%
$50,000,000
$35,000,000
$14,000,000
28.0%
Q
What is the unlimited marital deduction?
Assets left to a surviving U.S. citizen spouse are not subject to estate tax, regardless of amount. This allows deferral of estate taxes until the surviving spouse's death.
Unlimited amount can pass to a surviving U.S. citizen spouse tax-free
Non-citizen spouses: limited to a $194,000 annual exclusion (2026)
Qualified Domestic Trust (QDOT) required for non-citizen spouses
Defers tax only — survivor's estate may owe tax at their death
Consider using bypass/credit shelter trust to preserve both exemptions
Q
What qualifies for estate tax deductions?
Deductible items include: debts and mortgages, funeral expenses, estate administration costs, charitable bequests, and amounts left to a surviving spouse.
Debts and mortgages: reduce gross estate dollar-for-dollar
Funeral expenses: typically $7,000-$15,000 deductible
Charitable bequests: unlimited deduction for qualified charities
State estate taxes paid are deductible on the federal return
Q
Do states have separate estate taxes?
Yes, 12 states and DC have state estate taxes with lower exemptions (often $1-5 million). States include: WA, OR, HI, MN, IL, MD, VT, CT, NY, MA, ME, and RI. Check your state's specific rules.
State
Exemption
Top Rate
Notes
Massachusetts
$2,000,000
16%
Lowest exemption in US
Oregon
$1,000,000
16%
Lowest exemption in US
New York
~$7M, indexed annually
16%
Cliff: lose exemption if estate > 105%
Washington
$2,193,000
20%
Highest state rate in US
Connecticut
$15,000,000
12%
Matches the federal exclusion
DC
$4,710,800
16%
Adjusted annually
Q
How can I reduce estate taxes?
Strategies include: annual gift exclusion ($19,000/person in 2026), irrevocable life insurance trusts (ILIT), charitable trusts, family limited partnerships, and using the full exemption during lifetime.
Annual gift exclusion: $19,000/person/year (2026) — tax-free to unlimited recipients
ILIT: removes life insurance proceeds from taxable estate
Grantor Retained Annuity Trust (GRAT): transfer appreciation tax-free
Family Limited Partnership: 20-35% valuation discounts on transferred interests
Lifetime gifts using exemption: the $15M exclusion is permanent, so gift on your own timetable
Example Calculations
1Single Estate of $18,000,000
Inputs
Gross Estate Value$18,000,000
Filing StatusSingle / Widowed
Debts & Mortgages$200,000
Funeral Expenses$15,000
Charitable Gifts$0
Spouse Bequest$0
Result
Federal Estate Tax$1,114,000
Taxable Estate$17,785,000
Exemption Used$15,000,000
Amount Over Exemption$2,785,000
Net to Heirs$16,671,000
Total deductions = $200,000 + $15,000 = $215,000. Taxable estate = $18,000,000 - $215,000 = $17,785,000. Amount over exemption = $17,785,000 - $15,000,000 = $2,785,000. Estate tax = $2,785,000 x 40% = $1,114,000. Net to heirs = $18,000,000 - $215,000 - $1,114,000 = $16,671,000.
2Married Estate of $20,000,000 With Charitable Gifts
Inputs
Gross Estate Value$20,000,000
Filing StatusMarried (with portability)
Debts & Mortgages$500,000
Funeral Expenses$20,000
Charitable Gifts$1,000,000
Spouse Bequest$0
Result
Federal Estate Tax$0
Taxable Estate$18,480,000
Exemption Used$18,480,000
Amount Over Exemption$0
Net to Heirs$18,480,000
Total deductions = $500,000 + $20,000 + $1,000,000 = $1,520,000. Taxable estate = $20,000,000 - $1,520,000 = $18,480,000. Married exemption with portability = $30,000,000. Since $18,480,000 is below the $30,000,000 exemption, estate tax = $0. Net to heirs = $18,480,000.
3High-Value Single Estate of $25,000,000 With Charitable Gifts
Inputs
Gross Estate Value$25,000,000
Filing StatusSingle / Widowed
Debts & Mortgages$300,000
Funeral Expenses$25,000
Charitable Gifts$2,000,000
Spouse Bequest$0
Result
Federal Estate Tax$3,070,000
Taxable Estate$22,675,000
Exemption Used$15,000,000
Amount Over Exemption$7,675,000
Effective Rate13.5%
Net to Heirs$19,605,000
Total deductions = $300,000 + $25,000 + $2,000,000 = $2,325,000. Taxable estate = $25,000,000 - $2,325,000 = $22,675,000. Amount over exemption = $22,675,000 - $15,000,000 = $7,675,000. Estate tax = $7,675,000 x 40% = $3,070,000. Effective rate = $3,070,000 / $22,675,000 = 13.5%. Net to heirs = $25,000,000 - $2,325,000 - $3,070,000 = $19,605,000. The $2M charitable gift saved $800,000 in estate taxes.
Calculates the estate value subject to potential tax after all allowable deductions.
Where:
Gross Estate= Total value of all assets (real estate, investments, business interests, life insurance, etc.)
Marital Deduction= Unlimited deduction for assets left to surviving U.S. citizen spouse
Federal Estate Tax
Estate Tax = Max(0, Taxable Estate - Exemption) x 40%
The federal estate tax rate is a flat 40% on the amount exceeding the exemption.
Where:
Exemption= $15,000,000 per individual; $30,000,000 for married couples with portability (2026)
40%= Federal estate tax rate applied to amounts over the exemption
Net to Heirs
Net to Heirs = Gross Estate - Total Deductions - Estate Tax
The amount beneficiaries actually receive after deductions and taxes.
Where:
Total Deductions= Sum of debts, funeral costs, charitable gifts, and marital deduction
Estate Tax= Federal estate tax owed (if any)
Federal Estate Tax: Exemptions, Rates, and Planning Strategies
1
How the Federal Estate Tax Works
Fewer than 0.1% of U.S. estates owe any federal estate tax under the $15 million exemption that applies in 2026. The tax reaches only the portion of a taxable estate above that threshold, at a flat 40%. For a single filer with a $20 million taxable estate, $5 million is subject to tax, producing a bill of $2,000,000 — an effective rate of 10% on the estate as a whole.
The taxable estate is calculated by subtracting allowable deductions from the gross estate. Gross estate includes real property, bank accounts, investment portfolios, business interests, life insurance proceeds, and retirement accounts. Deductions include debts, funeral expenses ($7,000–$15,000 typical), charitable bequests, and the unlimited marital deduction for assets left to a surviving U.S. citizen spouse.
Married couples can effectively double their exemption to $30 million through portability — but only if the executor files Form 706 for the first spouse’s estate, even when no tax is due. Missing this filing permanently forfeits the unused exemption.
*Based on the 2026 federal exclusion of $15M per individual
Estate Value (Single)
Taxable Amount
Estate Tax (40%)
Effective Rate
$14,000,000
$0
$0
0.0%
$16,000,000
$1,000,000
$400,000
2.5%
$20,000,000
$5,000,000
$2,000,000
10.0%
$30,000,000
$15,000,000
$6,000,000
20.0%
$50,000,000
$35,000,000
$14,000,000
28.0%
2
The Sunset That Never Arrived
The Tax Cuts and Jobs Act doubled the estate tax exemption from roughly $5.5 million to $11.18 million in 2018, and inflation adjustments carried it to $13.99 million by 2025. That provision was scheduled to expire on January 1, 2026, cutting the exemption roughly in half — and for years, planning advice was built around beating that deadline. It did not happen. Section 70106 of the One Big Beautiful Bill Act set the basic exclusion at $15 million for 2026, made it permanent, and indexes it for inflation from 2027 onward.
For anyone who rushed lifetime gifts to get ahead of the deadline, nothing is lost: Treasury Regulation 20.2010-1(c) already guaranteed that gifts made under a higher exemption are never clawed back. What has changed is the urgency. An estate worth $12 million owes $0 today and would have owed roughly $2 million under the reversion, so the gifting decision can now be made on its merits and on your own timetable rather than against a clock.
The planning that still matters is procedural. Couples relying on portability must confirm Form 706 was filed for any deceased spouse — that filing is what preserves the unused exemption, and the deadline for it has nothing to do with the sunset that was repealed. Trusts and beneficiary designations written to trigger at the old threshold are worth re-reading, since some of them now distribute differently than their authors intended.
Tip: The $15M exclusion is permanent and indexed from 2027, so lifetime gifting no longer races a deadline. Check instead that Form 706 was filed for a deceased spouse - that is what preserves portability.
3
State Estate Taxes: The Second Layer
12 states and the District of Columbia impose their own estate taxes, often with exemptions far below the federal level. Oregon and Massachusetts have the lowest exemptions at $1 million and $2 million respectively, meaning estates that owe zero federal tax can still face state bills of $100,000 or more.
Washington state levies the highest top rate at 20%, while most other states cap at 12–16%. New York applies a particularly harsh "cliff" rule: if an estate exceeds 105% of the state exemption — roughly $7 million, indexed each year — the entire amount, not just the excess, becomes taxable. Crossing that line by a few thousand dollars can cost hundreds of thousands in state tax, so confirm the current year's figure with New York before cutting it close.
Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) also impose separate inheritance taxes, which are paid by the recipient rather than the estate. Maryland is the only state with both an estate tax and an inheritance tax. Use a budget calculator to plan for these potential liabilities when managing an inherited estate.
*Federal figures are 2026; state exemptions are set per state and change annually
State
Exemption
Top Rate
Key Note
Oregon
$1,000,000
16%
Lowest exemption in U.S.
Massachusetts
$2,000,000
16%
No inflation adjustment
New York
~$7M, indexed annually
16%
Cliff at 105% of exemption
Washington
$2,193,000
20%
Highest top rate nationally
Connecticut
$15,000,000
12%
Matches the federal exclusion
4
Tax Reduction Strategies by Estate Size
$19,000 per recipient per year — that is the 2026 annual gift exclusion amount, and it is the simplest estate-reduction tool available. A couple with three children and six grandchildren can transfer $342,000 annually ($19,000 × 9 recipients × 2 donors) without touching their lifetime exemption. Over 10 years, that removes $3.42 million from the taxable estate.
For estates between $15 million and $30 million, the question is no longer beating a deadline — the exclusion is permanent — but whether to move appreciating assets out early. Irrevocable trusts such as Grantor Retained Annuity Trusts (GRATs) and Spousal Lifetime Access Trusts (SLATs) transfer future appreciation out of the estate while retaining some access to the assets, which matters more the faster an asset is growing.
Estates exceeding $20 million benefit most from Family Limited Partnerships (FLPs) and Charitable Remainder Trusts (CRTs). FLPs can achieve 20–35% valuation discounts on transferred interests, while CRTs provide an income stream to the donor, a charitable deduction, and ultimately benefit a qualified charity. An investment calculator can help model how these strategies affect long-term portfolio growth.
Annual gifts of $19,000/person/year — removes $342,000+/year for a couple with 9 recipients
Irrevocable Life Insurance Trust (ILIT) — removes life insurance proceeds from taxable estate entirely
Grantor Retained Annuity Trust (GRAT) — transfers asset appreciation tax-free over a 2–10 year term
Family Limited Partnership (FLP) — achieves 20–35% valuation discounts on transferred interests
Spousal Lifetime Access Trust (SLAT) — uses both spouses’ exemptions while retaining indirect access
5
How to Use This Estate Tax Calculator
$15,000,000 is the single most important number in estate tax planning — and this calculator shows exactly how it applies to your situation. Start by entering the total gross estate value, including real estate, investments, business interests, life insurance, and retirement accounts.
Next, input deductions: outstanding debts and mortgages, estimated funeral expenses, charitable bequests, and any amounts left to a surviving spouse. The calculator applies the unlimited marital deduction automatically for spouse bequests. Select your filing status to determine whether the individual ($15M) or married with portability ($30M) exemption applies.
The results show the taxable estate, the amount over the exemption, the federal estate tax at 40%, the effective tax rate, and the net amount passed to heirs. Run multiple scenarios — for instance, compare the tax impact of a $2 million charitable bequest versus leaving the full estate to heirs. Use a retirement calculator to plan how estate distributions align with beneficiaries’ financial needs.
1
Enter gross estate value
Include all assets: real estate, investments, business interests, life insurance proceeds, and retirement accounts. A $500,000 home plus $17.5M in investments = $18M gross estate.
2
Add deductions
Input debts ($200,000 mortgage), funeral costs ($15,000 average), and charitable gifts. Each dollar deducted removes $0.40 in potential tax.
3
Select filing status
Choose single ($15M exemption) or married with portability ($30M). Portability requires Form 706 filed for the first deceased spouse.
4
Review and compare scenarios
Adjust charitable gifts or spouse bequests to see how different strategies affect the tax bill and net inheritance.
This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.
