Estate Tax Calculator

Introduction

This Estate Tax Calculator estimates federal estate tax on a gross estate minus debts, expenses, and charitable bequests, after applying lifetime gift exclusion already used and the federal estate tax exemption in effect for planning years such as 2026. Enter total assets, liabilities, prior taxable gifts, and marital or charity transfers if the form supports them. Output shows taxable estate and estimated tax at top marginal estate rates. It is for high-net-worth planning conversations, not probate filing or state inheritance tax.

Who this calculator is for

Families with estates approaching or exceeding federal exemption who need a ballpark tax before meeting estate counsel. Financial advisers illustrating impact of $18 million gross estate with debts and prior gifts use it in meetings. Spouses exploring portability of deceased spouse unused exemption want baseline numbers before Form 706 filing deadlines.

Typical retirees below exemption can skip this tool and focus on Retirement Calculator and RMD Calculator. Income tax during life belongs in the Tax Calculator. State estate or inheritance tax is separate and often hits at lower thresholds.

What it estimates

Gross estate includes real estate, investments, business interests, retirement accounts, and life insurance owned by decedent. Subtract debts, funeral and administration expenses, and qualified charitable deductions. Apply unified credit from remaining lifetime exemption after taxable gifts already made. Taxable estate above zero faces progressive rates topping at 40% on amounts above exemption.

Unlimited marital deduction for assets passing to U.S. citizen spouse defers tax until second death if modeled. Portability election from prior spouse DSUE adds to exemption if Form 706 filed timely. Generation-skipping transfer tax not modeled in simple versions.

Inputs explained

Use fair market value at date of death conceptually, not cost basis.

• Gross estate value: Sum of assets includible in federal gross estate.
• Debts and expenses: Mortgages, loans, final expenses, estimated administration costs.
• Lifetime taxable gifts: Prior gifts that consumed exclusion, such as $1 million used of unified credit.
• Charitable bequests (optional): Amounts passing to qualified charities.
• Marital bequest (optional): Assets passing outright to citizen spouse.
• Exemption amount: Federal estate tax exemption for planning year, conceptually mid-teens millions per person in 2026 discourse.

How to read the results

Taxable estate after exemption drives tax. Effective rate is tax divided by gross estate. If marital deduction applies to most assets, taxable estate may be near zero at first death with tax deferred. Second death planning must include prior DSUE and growth of inherited assets.

Lifetime gifting reduces gross estate if gifts are completed and not pulled back. Irrevocable trust transfers may remove assets if properly structured; calculator only sees numbers you enter, not legal characterization.

Worked example

Gross estate $18.2 million, debts and expenses $400,000, net $17.8 million. Lifetime taxable gifts $1 million already used against unified credit. Assume exemption about $13.6 to $14 million per person conceptually for mid-decade planning if law unchanged; remaining exemption might be $12.6 to $13 million after prior gifts depending on indexing. Taxable estate roughly $17.8 million minus exemption near $4.5 to $5.2 million if no marital or charity deduction.

Tax on $5 million taxable at 40% marginal above exemption slice might near $2.0 million before state tax. If $10 million passes to surviving spouse via marital deduction, taxable estate at first death drops toward gifts and non-marital assets only. Charitable bequest $2 million further reduces taxable estate dollar for dollar.

Practical use cases

Annual gifting program: reduce gross estate by $18,000 per donee annual exclusion times family size. Life insurance trust: exclude death benefit from estate if owned properly, remove insurance face from gross field. Business valuation discount planning not automatic in simple gross entry.

Coordinate with tax planning strategies 2026 for exemption sunset legislative risk. Income tax basis step-up at death affects heirs; not estate tax but related planning topic.

Limitations and related tools

State estate tax, GST tax, qualified domestic trust, closely held business discounts, and fractional interest valuations require professionals. Exemption amounts change by law; 2026 figures are planning assumptions.

Related: Tax Calculator, Retirement Calculator, RMD Calculator, tax planning strategies 2026.

How It Works

1. Enter gross estate and debts. Sum asset fair market values and subtract debts and administration expenses.
2. Add lifetime gifts used. Enter taxable gifts that already consumed unified exclusion.
3. Apply marital or charity transfers. Subtract bequests to spouse or charity if applicable to your scenario.
4. Read taxable estate and tax. Calculate estimated federal estate tax after exemption. Stress-test lower exemption law change.

Formula and methodology

The Estate Tax Calculator uses this identity for the scenario you enter. A bank, payroll system, or tax program may round on a 360-day year or average daily balance, so a statement can differ by a small amount.