Estate Tax Calculator

Estimate federal estate tax liability using the 2024 exemption of $13.61 million. Calculate how much your heirs will receive after taxes.

Estate Details

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Real estate, investments, retirement accounts, life insurance, etc.

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Mortgage, loans, funeral costs, admin expenses

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Unlimited deduction for qualified charities

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Assets passing to surviving U.S. citizen spouse

Enter your estate details and click Calculate to estimate federal estate tax.

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Pro Tip

If you expect the exemption to decrease in 2026, consider making large gifts now to lock in the current $13.61 million exemption. Consult an estate planning attorney for strategies.

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Understanding Federal Estate Tax

The federal estate tax applies to the transfer of property at death. For 2024, the lifetime exemption is $13.61 million per individual ($27.22 million for married couples). Only the value above this exemption is taxed at a flat rate of 40%.

Due to the high exemption, fewer than 0.1% of estates owe federal estate tax. However, the current exemption is set to revert to approximately $7 million (adjusted for inflation) after 2025 when provisions of the Tax Cuts and Jobs Act expire.

Several deductions reduce the taxable estate: the unlimited marital deduction (transfers to a surviving U.S. citizen spouse), charitable bequests (unlimited), and debts, funeral expenses, and estate administration costs.

Some states also impose their own estate or inheritance taxes, often with much lower exemptions. States like Massachusetts and Oregon have exemptions as low as $1 million. This calculator covers federal tax only.

Federal Estate Tax Calculation

Tax = (Taxable Estate - Exemption) × 40%

Where:

Taxable Estate = Gross estate minus debts, expenses, charitable, and marital deductions

Exemption = $13.61 million for 2024 (per individual)

Rate = 40% on amount exceeding the exemption

Example

Estate valued at $15 million with $200,000 in debts:

  • • Taxable estate = $15,000,000 - $200,000 = $14,800,000
  • • Amount over exemption = $14,800,000 - $13,610,000 = $1,190,000
  • • Federal tax = $1,190,000 x 40% = $476,000
  • • Net to heirs = $15,000,000 - $200,000 - $476,000 = $14,324,000

Frequently Asked Questions

What is the federal estate tax exemption for 2024?
The 2024 federal estate tax exemption is $13.61 million per individual. Married couples can effectively shield up to $27.22 million using portability of the deceased spouse's unused exemption. Only estates exceeding these thresholds owe federal estate tax.
Will the estate tax exemption decrease?
Yes, the current elevated exemption is scheduled to sunset after December 31, 2025. Without new legislation, it will revert to approximately $7 million per individual (adjusted for inflation) starting in 2026.
What is the unlimited marital deduction?
Assets transferred to a surviving spouse who is a U.S. citizen are fully exempt from estate tax, regardless of the amount. However, this only defers the tax -- the surviving spouse's estate will include those assets at their death.
Do all states have estate taxes?
No. Currently about 12 states and the District of Columbia impose their own estate taxes, often with lower exemptions ($1-5 million). Six states have inheritance taxes (paid by beneficiaries, not the estate). Maryland has both.
Does life insurance count in the estate?
Yes, if you own the policy. Life insurance proceeds are included in your gross estate if you had any incidents of ownership in the policy. An irrevocable life insurance trust (ILIT) can remove the proceeds from your taxable estate.