Calculate potential federal estate tax on an estate. Accounts for the current federal exemption amount, marital deductions, and graduated tax brackets from 18% to 40%. See a bracket-by-bracket breakdown of tax owed.
The U.S. federal estate tax applies to the transfer of property at death, but only for estates exceeding the very high federal exemption — currently $13.99 million per individual in 2025 (up from $13.61 million in 2024, indexed for inflation). Married couples can effectively double the exemption through "portability" of the deceased spouse's unused exemption, sheltering up to $27.98 million combined. Above the exemption, federal estate tax rates climb to 40% on the marginal amounts.
For more than 99% of U.S. estates, no federal estate tax is owed. The exemption is set high enough that only the wealthiest decedents reach taxable territory. But the exemption isn't permanent — under current law, the doubled exemption from the 2017 Tax Cuts and Jobs Act is scheduled to revert to roughly half (estimated ~$7 million per person) starting in 2026 unless Congress extends it. The estate planning landscape for high-net-worth families changes dramatically depending on what Congress does.
This calculator estimates federal estate tax liability for estates exceeding the exemption. It applies the federal exemption (with optional portability for married couples), subtracts debts and deductions, then computes tax using the graduated estate tax brackets. State estate taxes (which have much lower exemptions in many states — sometimes as low as $1 million) are not included; check your state separately. Use the calculator to identify whether estate planning strategies (gifting, trusts, life insurance, charitable bequests) are worth pursuing for your specific situation.
$5,000,000 estate, $200,000 debts, single. No spouse. Taxable estate: $4,800,000 Federal exemption: $13,990,000 Tax: $0 (estate is well under exemption) Most U.S. estates fall into this category. With the high current exemption, less than 1% of estates owe federal estate tax. State estate tax may still apply — check your state.
$25,000,000 estate (entrepreneur, business sale proceeds), $500,000 debts, single. Taxable estate: $24,500,000 Federal exemption: $13,990,000 Taxable amount: $10,510,000 Federal Estate Tax: $10,510,000 × 0.40 = $4,204,000 Net to heirs: $24,500,000 − $4,204,000 = $20,296,000 Substantial tax (17% of estate). Planning strategies that could reduce this include: lifetime gifting (using annual exclusions and lifetime gift exemption), Irrevocable Life Insurance Trust (ILIT) to remove life insurance proceeds from estate, charitable bequests, family limited partnership discounts on business interests. With multi-year planning, a $25M estate could potentially pay far less tax.
$22,000,000 combined estate. Husband dies first with $11M of assets, leaves all to wife. Wife dies later when assets have grown to $24M. Husband's death: marital deduction makes $11M transfer tax-free. His $13.99M exemption is unused. Estate files Form 706 to elect portability — his unused exemption ($13.99M) is preserved. Wife's death: combined exemption available = her $13.99M + his unused $13.99M = $27.98M. Taxable estate: $24,000,000 Combined exemption: $27,980,000 Taxable amount: $0 (estate under combined exemption) Federal Estate Tax: $0 Net to heirs: $24,000,000 The portability election allows married couples to effectively double the exemption. Critically: the surviving spouse's estate gets the deceased spouse's unused exemption ONLY if Form 706 was timely filed at the first death — even when no tax was due. This is a common estate-planning oversight that costs millions in some cases.
Use this calculator if your estate or your parents' estate approaches or exceeds the federal exemption ($13.99M individual / $27.98M married in 2025). For most Americans, federal estate tax is not a concern, but for the wealthy minority, the planning stakes are high.
If your estate is below $5 million, federal estate tax is unlikely to be relevant under current law. State estate tax may still apply in some states. Focus other estate planning energy on probate-avoidance, asset protection, and orderly succession rather than tax minimization.
If your estate is $5-15 million, you're in a "watch and plan" zone. Current federal exemption shelters you, but: (1) the 2026 exemption sunset could bring you back into taxable territory, (2) state estate tax may apply, and (3) growth of the estate over time could push you above the post-sunset exemption. Annual review with an estate planning attorney is appropriate.
If your estate is above $15 million (especially $20M+), federal estate tax is a substantial concern even under current law. Comprehensive estate planning — including some combination of lifetime gifting strategies, Irrevocable Life Insurance Trust (ILIT), Grantor Retained Annuity Trust (GRAT), Charitable Remainder Trust (CRT), family limited partnerships, and intentionally defective grantor trusts (IDGT) — can reduce eventual tax by millions. Estate planning attorneys specializing in high-net-worth families are essential.
Pair this with the life-insurance-needs calculator (life insurance owned by an ILIT removes proceeds from estate while providing liquidity for estate tax), the net-worth calculator (for understanding total estate value), the income-tax-estimator (for comparing income tax to estate tax planning trade-offs), and the charitable-giving-tax calculator (for evaluating charitable bequests).
Key estate planning strategies (consult an attorney for implementation):
1. **Annual gift exclusion.** $18,000 per recipient per year (2024; $19,000 in 2025) can be gifted without using lifetime exemption. A couple can gift $36-38K per recipient. Multi-decade gifting can transfer millions outside the estate.
2. **Lifetime gift exemption.** The $13.99M federal exemption applies to combined lifetime gifts and estate transfers. Using exemption during life can be more valuable than at death (especially if asset is expected to appreciate — the appreciation also escapes estate tax).
3. **ILITs (Irrevocable Life Insurance Trusts).** Life insurance owned by the insured's estate is included in the estate for tax purposes. An ILIT owns the policy, removing the death benefit from the estate while providing tax-free liquidity to pay estate taxes.
4. **Charitable bequests.** Property left to qualifying charities has unlimited deduction from the taxable estate. For estate-tax-affected estates, charitable remainder trusts and charitable lead trusts can combine charitable goals with estate tax reduction.
5. **Generation-skipping planning.** Transfers to grandchildren (or further descendants) can use the GST tax exemption (same as estate tax exemption) to skip a generation of estate tax.
6. **State residency.** Some affluent families relocate before retirement from high-tax estate states (NY, MA, OR, WA) to no-estate-tax states (FL, TX, NV, etc.) for state estate tax planning.
The combination of high federal exemption + sunset risk + state estate tax variations + sophisticated planning opportunities makes estate planning for high-net-worth families one of the most consequential areas of personal financial planning.
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Taxable Estate
$0
Estate Tax Owed
$0
Effective Tax Rate
0.00%
Exemption Used
$15,000,000