Estate Tax Calculator
Estimate the U.S. federal estate tax for a given year. Enter the gross value of the estate, any deductions, and prior taxable gifts to calculate the potential tax liability. This calculator is for informational purposes only and does not constitute legal or financial advice.
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Enter the estate details above and click "Calculate".
Understanding Estate Taxes: A Comprehensive Guide
Estate taxes can significantly impact the wealth you pass on to your heirs. Our free estate tax calculator helps you estimate potential federal and state estate tax liabilities based on current laws. The calculator considers the 2025 federal estate tax exemption of $12.92 million, as well as state-specific exemptions and rates for the 12 states that impose their own estate taxes.
What is the Estate Tax?
The estate tax is a federal (and sometimes state) tax on the transfer of property after death. It applies to the net value of all assets you own at death, minus allowable deductions and exemptions. The federal estate tax rate ranges from 18% to 40% on taxable amounts above the exemption threshold.
Key Factors Affecting Estate Taxes:
- Gross Estate Value: Includes all assets you own (real estate, investments, business interests, life insurance proceeds, etc.)
- Deductions: Funeral expenses, debts, charitable bequests, and administrative costs reduce your taxable estate
- Exemption Amount: The 2025 federal exemption is $12.92 million per individual ($25.84 million for married couples using portability)
- State Variations: 12 states and DC impose their own estate taxes with lower exemptions than federal
- Marital Status: Transfers to surviving spouses are generally tax-free (unlimited marital deduction)
Estate Tax Planning Strategies:
If your estate approaches or exceeds the exemption amount, consider these strategies to minimize taxes:
- Annual Gift Tax Exclusion: Gift up to $18,000 per recipient per year (2025) tax-free
- Irrevocable Life Insurance Trusts (ILIT): Remove life insurance proceeds from your taxable estate
- Charitable Giving: Donations to qualified charities reduce your taxable estate
- Family Limited Partnerships: Can provide valuation discounts for estate tax purposes
- Portability Election: For married couples, file IRS Form 706 to preserve both spouses' exemptions
State Estate Tax Considerations
States with estate taxes typically have much lower exemptions than federal law. For example:
- Oregon taxes estates over $1 million
- Massachusetts and New York have $2 million exemptions
- Washington state taxes estates over $2.193 million at rates up to 20%
Some states also have inheritance taxes (paid by beneficiaries) rather than estate taxes (paid by the estate).
Frequently Asked Questions
Q: When is estate tax due?
A: Federal estate tax returns (Form 706) are due 9 months after death, with possible 6-month extension. Payment is generally due at the same time.
Q: How does portability work?
A: Portability allows a surviving spouse to use their deceased spouse's unused exemption amount by filing Form 706.
Q: Are retirement accounts subject to estate tax?
A: Yes, the fair market value of retirement accounts (IRA, 401k, etc.) is included in your taxable estate.
Q: What's the difference between estate tax and inheritance tax?
A: Estate tax is levied on the estate before distribution, while inheritance tax is paid by beneficiaries on what they receive.
Note: Estate tax laws change frequently. The Tax Cuts and Jobs Act of 2017 doubled the federal exemption through 2025, but this provision is scheduled to sunset after 2025 unless Congress acts. Always consult with a qualified estate planning attorney or tax professional for advice specific to your situation.
Use our estate tax calculator above to estimate your potential tax liability based on current laws. For estates approaching or exceeding exemption amounts, professional estate planning can help preserve wealth for your heirs while minimizing tax burdens.