Estate Tax Calculator

The federal estate tax is a tax on the transfer of a deceased person's assets to their heirs. It is imposed on the estate itself — not on the individuals who receive inheritances — before assets are distributed. The tax applies only to the portion of the taxable estate that exceeds the lifetime exemption amount, which is $13,610,000 per person in 2024. Assets below that threshold pass to heirs entirely free of federal estate tax.

Despite its political prominence, the estate tax affects a very small fraction of estates. The Tax Policy Center estimates that fewer than 0.2% of all deaths in 2023 resulted in an estate tax filing — roughly 7,600 taxable estates out of approximately 3.9 million deaths. The high exemption threshold means the tax is largely a concern for high-net-worth individuals and families with illiquid assets such as closely held businesses, farms, or real estate that may be difficult to liquidate to pay the tax.

The tax is sometimes called the "death tax" in political discourse, but is formally titled the United States Estate Tax under Chapter 11 of the Internal Revenue Code. It is separate from the gift tax (levied on transfers during your lifetime) and the generation-skipping transfer tax (an additional tax on transfers to grandchildren and more remote descendants that skip a generation). All three taxes share the same unified lifetime exemption, which is why gifts made during life reduce the exemption available at death.

This calculator estimates federal estate tax using the 2024 flat 40% rate above the exemption. Actual federal estate tax uses a graduated rate schedule (18%–40%), but estates large enough to owe tax almost always face rates near 40% due to the structure of the brackets. Consult an estate planning attorney or CPA for your specific situation.

The estate tax calculation on Form 706 (United States Estate Tax Return) follows eight sequential steps:

Gross Estate = Fair Market Value of All Assets at Date of Death

Includes: real estate, bank/brokerage accounts, retirement accounts, life insurance proceeds
(if estate owns the policy), business interests, personal property, annuities,
jointly owned property (proportionate share), and prior taxable gifts.

Taxable Estate = Gross Estate
  − Debts and liabilities of the decedent
  − Mortgages on property included in the estate
  − Funeral and administration expenses
  − Unlimited Marital Deduction (assets passing to U.S. citizen spouse)
  − Charitable Deduction (assets passing to qualified charities)
  − State death taxes paid (deductible on federal return)

Tentative Tax Base = Taxable Estate + Post-1976 Taxable Gifts
(gifts made during lifetime in excess of the annual exclusion)

Tentative Tax = Apply graduated rate schedule (18%–40%) to the Tax Base

Rate schedule summary:
  $0 – $10,000:          18%
  $10,001 – $20,000:     20%
  $20,001 – $40,000:     22%
  ... (graduated increases) ...
  Over $1,000,000:       40%

Estate Tax Before Credits = Tentative Tax
  − Gift Tax That Would Have Been Payable on Post-1976 Gifts
  (eliminates double-counting of gifts already taxed)

2024 Unified Credit = $13,610,000 exemption equivalent
(= tentative tax on $13,610,000 under the rate schedule)

Net Estate Tax = Estate Tax Before Credits − Unified Credit

Final Tax = Net Estate Tax
  − Foreign Death Tax Credit (taxes paid on foreign assets)
  − Credit for Tax on Prior Transfers (assets taxed in a recent prior estate)

Due Date: 9 months after date of death (Form 706)
Extension: 6-month filing extension available (not a payment extension)

Installment option (IRC §6166): Qualifying closely held business
interests may be paid in installments over up to 14 years.

The IRS has confirmed (Revenue Procedure 2019-32 and related guidance) that gifts made before the sunset that exceed the post-sunset exemption will not be subject to a "clawback" — the gifts will be protected at the higher exemption level. This creates a significant planning opportunity for individuals with estates between $7M and $14M (or $14M–$28M for couples): gifts made before the sunset can permanently shelter assets from estate tax at the higher exemption level, even if the exemption later drops. Families in this range should consult an estate planning attorney promptly.

Twelve states and the District of Columbia impose their own estate taxes, separate from and in addition to the federal estate tax. Six states impose an inheritance tax — a tax paid by the beneficiary on what they receive (rather than by the estate). Maryland is the only state with both. Most states with estate taxes have much lower exemption thresholds than the federal level, meaning estates that owe no federal tax may still owe substantial state tax.

Approximate 2024 figures. State laws change frequently — verify current rules with a local estate planning attorney. Inheritance tax rates and exemptions vary by relationship to the decedent.

Trusts are the core tool of advanced estate planning. A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of beneficiaries according to the terms of a trust document. Whether and how assets in a trust are included in your taxable estate depends entirely on the type of trust and how it is structured.