How to use the estate tax calculator
- Enter the gross estate: the value at death of everything the person owned or controlled, including homes, investments, retirement accounts, business interests and life insurance they owned.
- Enter debts, funeral and estate expenses: mortgages, other debts, and executor, legal and administration costs.
- Enter what passes to a US-citizen spouse and to charity. Both are deducted in full.
- Enter lifetime taxable gifts: gifts above the yearly exclusion reported on gift tax returns since 1977.
- If the person was widowed and the first spouse's executor elected portability, enter the unused exclusion (DSUE).
- Enter any gift tax already paid, then read the estate tax due.
How the federal estate tax is calculated
The "tentative tax" uses the federal rate schedule below, which runs from 18% to 40%. Subtracting the tax on the exclusion amount, the applicable credit, cancels the tax on the first $15 million. In practice every dollar of the tax base above the exclusion is taxed at 40%.
| Taxable amount over | Not over | Tax on the lower amount | Rate on the excess |
|---|---|---|---|
| $0 | $10,000 | $0 | 18% |
| $10,000 | $20,000 | $1,800 | 20% |
| $20,000 | $40,000 | $3,800 | 22% |
| $40,000 | $60,000 | $8,200 | 24% |
| $60,000 | $80,000 | $13,000 | 26% |
| $80,000 | $100,000 | $18,200 | 28% |
| $100,000 | $150,000 | $23,800 | 30% |
| $150,000 | $250,000 | $38,800 | 32% |
| $250,000 | $500,000 | $70,800 | 34% |
| $500,000 | $750,000 | $155,800 | 37% |
| $750,000 | $1,000,000 | $248,300 | 39% |
| $1,000,000 | no limit | $345,800 | 40% |
Rates from the Form 706 instructions, Table A. The One Big Beautiful Bill Act set the basic exclusion at $15,000,000 for 2026, adjusted for inflation from 2027, per IRS Rev. Proc. 2025-32; for 2025 it was $13,990,000. The annual gift exclusion for 2026 is $19,000 per recipient.
Worked example
The defaults are a $20,000,000 gross estate with $500,000 of debts and expenses, no marital or charitable bequests, and $1,000,000 of lifetime taxable gifts.
- Taxable estate: $20,000,000 − $500,000 = $19,500,000
- Tax base: $19,500,000 + $1,000,000 = $20,500,000
- Tentative tax: $345,800 + 40% × ($20,500,000 − $1,000,000) = $8,145,800
- Credit for the $15,000,000 exclusion: $345,800 + 40% × $14,000,000 = $5,945,800
- Estate tax: $8,145,800 − $5,945,800 = $2,200,000
That is 40% of the $5,500,000 above the exclusion. Leaving the $19,500,000 to a spouse would make the tax $0, and if the estate had $5,000,000 of DSUE from an earlier spouse the tax would drop to $200,000.
Who pays estate tax
Very few estates. With a $15 million exclusion per person, a married couple can pass up to $30 million free of federal estate tax if the survivor's estate claims the first spouse's unused exclusion through portability. Portability is not automatic: the first estate's executor must file a timely Form 706 to elect it, even when no tax is due.
Several states and the District of Columbia charge their own estate or inheritance tax, often with far lower exemptions than the federal one, and this calculator does not include them. Check your state's revenue department, and talk to an estate attorney before making plans that depend on these numbers.
Frequently asked questions
What is the estate tax exemption for 2026?
It is $15,000,000 per person for deaths in 2026, up from $13,990,000 in 2025. The 2025 tax law made this higher amount permanent and indexed it to inflation from 2027, instead of letting it fall by about half as earlier law would have.
Do lifetime gifts reduce the exemption?
Yes. Gifts above the yearly exclusion, $19,000 per recipient in 2026, use up part of the same exclusion. They are added back to the estate as adjusted taxable gifts, which is why the calculator asks for them. Gifts within the yearly exclusion, and payments made straight to a school or medical provider, don't count.
Is life insurance part of the taxable estate?
Life insurance is included if the person who died owned the policy or had control over it, even though the payout goes straight to the beneficiaries. Policies held in an irrevocable life insurance trust are usually outside the estate.
Do heirs pay income tax on what they inherit?
Generally no. Inherited property isn't income to the heir, and most assets get a stepped-up cost basis to their value at death. Inherited traditional IRAs and 401(k)s are the main exception: withdrawals are taxed as ordinary income.
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Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.