Estate Tax Calculator
Estimate your potential federal estate tax liability and explore strategies to preserve more wealth for your heirs.
Federal Estate Tax Estimate
Calculate the estimated federal estate tax based on your gross estate value and applicable deductions.
Gifting Strategy Impact
See how a systematic gifting program can reduce your taxable estate and save on estate taxes.
Married Couple Estate Tax
Calculate estate tax for married couples using portability and marital deduction strategies.
About the Estate Tax Calculator
Estate taxes can significantly reduce the wealth transferred to your heirs if proper planning is not undertaken. Our Estate Tax Calculator helps high-net-worth individuals estimate their federal estate tax liability under current law, explore the impact of various deductions and exemptions, and quantify the benefits of proactive estate planning strategies.
The current federal estate tax exemption of $13.61 million (2024) means that only estates exceeding this threshold face taxation. However, this historically high exemption is scheduled to sunset in 2026, potentially dropping to around $7 million per person. For wealthy families, this looming change makes estate planning more urgent than ever. Our calculator lets you model both current and reduced exemption scenarios.
Married couples benefit from portability, which allows the surviving spouse to use any unused portion of the deceased spouse's exemption. Combined with the unlimited marital deduction, proper planning can shelter up to $27.22 million from estate taxes. Our married couple calculator helps you optimize these provisions for maximum tax savings.
Frequently Asked Questions
What is the current federal estate tax exemption?
The 2024 federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples using portability). Estates below this threshold owe no federal estate tax. The exemption is scheduled to decrease to approximately $7 million (inflation-adjusted) in 2026 when the TCJA provisions sunset, unless Congress acts to extend them.
What is the federal estate tax rate?
The federal estate tax rate is a progressive structure with rates from 18% to 40%. However, because of the large exemption amount, the effective rate for taxable estates is 40% on the amount exceeding the exemption. For example, an estate of $20 million would pay approximately $2.56 million in estate tax (40% of the $6.39 million above the $13.61 million exemption).
How can I reduce my estate tax liability?
Common estate tax reduction strategies include gifting during your lifetime (up to $18,000 per recipient annually tax-free), establishing irrevocable trusts, using family limited partnerships, making charitable bequests, purchasing life insurance in an irrevocable life insurance trust (ILIT), and utilizing marital deduction and portability for married couples.
Do all states have an estate tax?
No, only about 12 states and the District of Columbia impose a state-level estate tax, often with lower exemption thresholds (as low as $1 million in some states). Six states impose an inheritance tax instead, which is paid by the heir rather than the estate. Some states impose both. State taxes are in addition to federal estate tax, making location planning important for wealthy families.