Estate Tax Calculator
Calculate federal and state estate tax liabilities based on asset values, deductions, and exemptions
Estate Tax Calculation Results
Gross Estate Value
Taxable Estate
Federal Tax
State Tax
Tax Analysis
| Asset/Liability | Type | Value | Tax Treatment |
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How to Use the Estate Tax Calculator
- Add Assets: Enter all assets including real estate, investments, retirement accounts, and life insurance.
- Add Liabilities: Include mortgages, debts, funeral expenses, and charitable bequests.
- Select Filing Status: Choose single, married, or married with portability to optimize exemptions.
- State Selection: Select your state of residence for accurate state estate tax calculations.
- Click “Calculate Estate Tax” to see your potential federal and state tax liabilities.
Related Calculators
An estate tax calculator is more than just a number tool. It is a planning instrument that helps individuals, families, and professionals understand how estate taxes, federal estate tax exemptions, and state inheritance tax rules affect wealth transfer. Many people assume estate tax applies only to billionaires, but in reality, changing tax laws, rising property values, and lower state exemptions make estate tax planning relevant to a much wider group.
By using an estate tax calculator early, you gain visibility into estate tax liability, taxable estate value, and available deductions. This clarity allows smarter decisions around gifting, trusts, charitable planning, and long-term financial security.
What Is an Estate Tax Calculator and How Does It Work?
An estate tax calculator is an online financial tool that estimates the federal estate tax and applicable state estate or inheritance taxes owed when a person dies. It uses inputs such as gross estate value, liabilities, lifetime gifts, estate tax exemptions, and tax rates to calculate the final tax amount.
Behind the scenes, the calculator follows logic similar to IRS Form 706. It calculates the gross estate, subtracts allowable deductions and debts, adjusts for lifetime taxable gifts, applies the unified credit, and then estimates the estate tax due.
Estate tax calculators are especially useful because estate taxation depends heavily on the year of death, state of residence, and marital status, all of which are built into modern calculators.
Estate Tax vs Inheritance Tax
Estate tax is imposed on the estate itself before assets are distributed to heirs. In contrast, inheritance tax is paid by beneficiaries after they receive assets. This distinction is critical in estate planning.
Some U.S. states impose inheritance taxes based on the heir’s relationship to the deceased. For example, spouses are usually exempt, while distant relatives may pay higher rates.
Who Should Use an Estate Tax Calculator?
This calculator is useful for homeowners, investors, business owners, and retirees. It is also valuable for financial advisors, estate planning attorneys, and tax planners.
Students studying law, finance, or economics use estate tax calculators to understand real-world tax systems. Even younger individuals benefit by planning early and tracking long-term wealth growth.
Countries & Jurisdictions Covered
Most estate tax calculators focus on the United States, where estate taxation includes federal estate tax, state estate tax, and state inheritance tax systems. U.S. estate tax laws are complex and change frequently.
Other countries follow different inheritance systems, but U.S.-based estate planning requires special attention due to exemption sunsets and state-level variation.
What This Estate Tax Calculator Includes
This estate tax calculator mirrors how estate taxes are actually assessed by tax authorities. It separates assets, deductions, exemptions, and tax logic clearly.
By breaking everything into structured categories, users can see exactly how each financial component affects the final estate tax estimate.
Asset Categories You Can Calculate
The calculator includes all major estate assets. These include real estate such as a primary residence, rental property, and land, all valued at fair market value.
It also includes stocks, bonds, mutual funds, cash, savings accounts, CDs, retirement accounts like IRAs and 401(k)s, vehicles, business interests, and life insurance proceeds. Life insurance is especially important because policies owned by the deceased are often taxable.
Liabilities, Costs, and Deductions Supported
Estate taxes apply to net estate value, not gross assets. The calculator subtracts mortgages, personal loans, credit card debt, and other liabilities.
It also deducts funeral expenses, estate administration costs, charitable contributions, and state estate or inheritance taxes, which can significantly reduce taxable estate value.
Federal Estate Tax Rules Built into the Calculator
Federal estate tax rules are complex, but this calculator simplifies them while remaining accurate. It reflects IRS guidelines used in real estate tax filings.
By incorporating official estate tax exemptions, marital deductions, and unified credit rules, the calculator produces realistic results.
Current Federal Exemption Handling
The calculator applies the correct federal estate tax exemption based on the selected year. Only the value above the exemption is taxable.
This is why many estates owe no federal estate tax today.
Progressive vs Flat Estate Tax Logic
Although estate taxes use brackets, the effective top rate is 40%. The calculator reflects this correctly for high-value estates.
This prevents underestimating tax exposure.
Marital Deduction and Spouse Exemption
The unlimited marital deduction allows assets transferred to a surviving spouse to pass tax-free. The calculator accounts for this and shows how tax is deferred.
This is a key concept in estate planning for married couples.
Lifetime Gifted Amount Adjustment
Taxable gifts made during life reduce the available estate tax exemption. The calculator tracks lifetime gifted amounts accurately.
This helps users understand how gifting affects future estate tax liability.
Unified Credit Concept
The unified credit links federal gift tax and estate tax into one system. The calculator automatically applies this credit correctly.
State Estate Tax & Inheritance Tax Considerations
State-level taxes often create the biggest surprises in estate planning. Many states have much lower exemption thresholds than the federal government. The calculator separates federal and state logic to give a full picture.
States with Estate Taxes
States such as New York, Massachusetts, Oregon, and Washington impose estate taxes. Their exemptions can be as low as $1 million. The calculator shows how state estate tax increases total tax liability.
States with Inheritance Taxes
Inheritance tax is paid by beneficiaries, not the estate. Rates depend on the relationship and state law. This explains why heirs may owe tax even when no federal estate tax applies.
2025–2026 Estate Tax Changes & Tax Cliff Explained
Estate tax planning is especially important right now due to upcoming law changes. Understanding the estate tax sunset helps families act before it’s too late.
2025 Federal Estate Tax Exemption
For 2025, the exemption is $13.99 million per individual and $27.98 million for married couples. This shields most estates from federal tax. The calculator reflects this exemption accurately.
2026 Tax Cliff Impact
In 2026, exemptions are expected to drop to around $7 million per person. This could suddenly make many estates taxable. Using an estate tax calculator now helps compare both scenarios.
How to Use the Estate Tax Calculator (Step-by-Step)
Using the calculator is simple and intuitive. First, enter all estate assets.
Then add liabilities and deductions, select the state of residence, choose the year of death, enter lifetime gifts, and click Calculate. Results appear instantly.
How the Calculator Determines Taxable Estate Value
The calculator first determines gross estate value using fair market prices. It subtracts deductions, adjusts for gifts, applies exemptions, and calculates the final taxable estate value.
How Estate Planning Can Reduce Estate Tax Liability
Calculating estate tax is only the first step. Planning reduces it legally.
Lifetime Gifting Strategies
Annual gift tax exclusions allow tax-free transfers each year. Over time, this reduces estate size. The calculator shows how gifts affect exemptions.
Trust-Based Planning
Revocable trusts help avoid probate. Irrevocable trusts remove assets from the taxable estate. Trusts improve tax efficiency and control.
Charitable & Spousal Transfers
Charitable deductions and spousal transfers reduce or defer estate tax while preserving wealth.
Real-Life Uses of This Estate Tax Calculator
Families use it for inheritance planning. Advisors use it for tax projections. Students use it for learning estate tax systems.
Estate Tax vs Inheritance Tax – Key Differences
The estate pays estate tax. Inheritance tax is paid by heirs.
Estate tax can be federal and state-based. Inheritance tax is state-based only.
Common Mistakes People Make When Estimating Estate Tax
Ignoring state taxes, forgetting life insurance, overlooking gifts, and ignoring the 2026 tax cliff are common mistakes. Estate tax planning is not only for the wealthy.
When to Consult an Estate Planning Professional
Professional help is needed for high-net-worth estates, business owners, multi-state assets, and changing tax laws.
Final Thoughts – Plan Early, Calculate Accurately
An estate tax calculator gives clarity, control, and confidence. It turns complex estate tax rules into actionable insight.
Early calculation creates more options. Late planning creates regrets.
FAQs About Estate Tax Calculator
Can estate tax be reduced legally?