How to use the estate tax calculator
- 1 Enter the gross estate: home, investments, retirement accounts, business interests and life insurance owned.
- 2 Enter debts and settlement costs.
- 3 Enter what is left to a spouse and to charity.
- 4 Add lifetime taxable gifts and any ported exclusion, then read the tax.
Worked example
A $20 million estate with $500,000 of debts and costs and $1 million left to charity. The taxable estate is $18.5 million. That is $3.5 million above the $15 million exclusion, so estate tax is about $1,400,000. With a spouse's ported exclusion, there would be no federal tax at all.
Estate tax, gift tax and inheritance tax
Estate tax is paid by the estate before heirs receive anything. In 2026 each person can leave or give $15 million in total without federal estate or gift tax, and a married couple can pass on $30 million using portability. The excess is taxed at 40%.
- Annual gifts of up to $19,000 per recipient in 2026 do not count against the $15 million.
- Portability is not automatic: the executor must file Form 706 after the first death to keep the unused exclusion.
- State taxes: about a dozen states and DC have their own estate tax, often with much lower exemptions, and a few states charge inheritance tax on heirs instead.
Heirs get a stepped-up cost basis, which can wipe out capital gains on inherited assets; compare with the Capital Gains Tax Calculator. Life insurance owned by the deceased counts toward the estate; size cover with the Life Insurance Calculator.
Features
$15 million exclusion
The 2026 basic exclusion set by the One Big Beautiful Bill Act, indexed for inflation from 2027.
Deductions
Unlimited marital and charitable deductions.
Portability
Adds a late spouse's unused exclusion (DSUE).
Lifetime gifts
Taxable gifts above the annual exclusion count against the same exclusion.
When to use it
Estate planning
See whether federal estate tax is a concern at all. Add up the estate with the Net Worth Calculator.
Married couples
Check how portability can shelter up to $30 million. Size cover with the Life Insurance Calculator.
Charitable giving
See how bequests to charity cut the tax. Heirs selling assets? See the Capital Gains Tax Calculator.
Business owners
Estimate tax on a family business or farm. Plan IRA withdrawals with the RMD Calculator.
Related Tax tasks
Frequently asked questions
What is the estate tax exemption for 2026?
$15 million per person, or $30 million for a married couple using portability. It is set permanently by the 2025 tax law and adjusts for inflation from 2027.
What is the estate tax rate?
Graduated rates reach 40% quickly, so in practice the amount above the exclusion is taxed at 40%.
What is the annual gift exclusion?
$19,000 per recipient in 2026. Gifts up to that amount do not use any of your lifetime exclusion.
What is portability?
A surviving spouse can use the deceased spouse's unused exclusion if the executor files an estate tax return, Form 706, on time.
Is life insurance part of the estate?
Yes, if the deceased owned the policy. An irrevocable life insurance trust can keep it out.
Do states have estate taxes?
Yes. About a dozen states and DC have estate or inheritance taxes with much lower exemptions, some around $1 million to $2 million.
Do heirs pay income tax on what they inherit?
Generally no, and inherited assets get a stepped-up cost basis. Traditional IRAs and 401(k)s are an exception: withdrawals are taxable income.
Who must file an estate tax return?
Estates with gross assets plus taxable gifts above the exclusion, and any estate electing portability for a surviving spouse, even if no tax is due.
When is the estate tax due?
Nine months after death, with a six-month extension available for filing but not normally for payment.
Do trusts avoid estate tax?
Revocable living trusts do not. Some irrevocable trusts can remove assets from the estate, but they involve giving up control.
Do I owe tax on a gift?
Rarely. Gifts above $19,000 per person require a gift tax return, but tax is owed only after lifetime gifts pass the $15 million exclusion.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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