Estate Tax Calculator
Estimate federal estate tax by entering the total estate value and applicable exemption amount to find the taxable estate and estimated tax.
Estate tax (also called inheritance tax or death duty depending on jurisdiction) is levied on the transfer of assets from a deceased person to their heirs. In the United States, only estates exceeding the federal exemption threshold are taxed — and the tax applies only to the amount above the exemption, not the entire estate.
Federal estate tax formula: Taxable Estate = Gross Estate − Deductions − Exemption Estate Tax Owed = Taxable Estate × Applicable Tax Rate
Federal exemption (2024): $13,610,000 per individual (indexed annually for inflation) For married couples: $27,220,000 using “portability” election.
Federal estate tax rate schedule (on amounts above exemption):
- Up to $10,000 over threshold: 18%
- $10,001–$20,000: 20%
- $20,001–$40,000: 22%
- … (progressive brackets)
- Over $1,000,000 above threshold: 40% (the effective rate for large estates)
Gross estate includes:
- All real estate (fair market value)
- Financial accounts, investments, retirement accounts
- Life insurance proceeds (if you own the policy)
- Business interests
- Personal property, vehicles, art, jewelry
Allowable deductions:
- Debts and mortgages
- Marital deduction (unlimited — assets to surviving spouse)
- Charitable deduction (unlimited)
- Funeral and administration expenses
State estate taxes: 12 US states plus DC have their own estate taxes with lower exemptions (as low as $1,000,000 in Oregon and Massachusetts).
Worked example: Gross estate: $15,000,000. Mortgage: $400,000. Charitable gift: $500,000.
- Deductions = $400,000 + $500,000 = $900,000
- Net estate = $15,000,000 − $900,000 = $14,100,000
- Federal exemption (2024) = $13,610,000
- Taxable amount = $14,100,000 − $13,610,000 = $490,000
- Approximate federal tax = $490,000 × 40% = $196,000
Below the federal exemption threshold? $0 in federal estate tax. The exemption covers 99.9% of all US estates.