Estate Tax Calculator

Free 2026 estate tax calculator. Estimate federal estate tax with the $15M basic exclusion amount, graduated 18-40% rates, portability election, and taxable estate breakdown.

About the Estate Tax Calculator

The Estate Tax Calculator estimates the federal estate tax that may apply when assets are transferred after death. For 2026, the basic exclusion amount is $15 million per individual ($30 million for married couples using portability).

The federal estate tax uses graduated rates from 18% to 40%, but the unified credit effectively shelters the first $15 million of cumulative transfers. Estates above this threshold face a marginal rate of 40% on the excess.

Enter the gross estate value, deductions, and prior gifts to see whether your estate would owe federal estate tax and how much. This calculator also illustrates how the unlimited marital deduction, charitable deductions, and portability of unused exemption between spouses can significantly reduce or eliminate estate tax liability.

Why Use This Estate Tax Calculator?

Estate tax planning can save families millions of dollars. This calculator helps you estimate whether your estate will exceed the exemption, how much tax might be owed, and how portability between spouses can be leveraged. It's useful for high-net-worth individuals, trustees, and estate planning attorneys who need a quick current-law estimate.

How to Use This Calculator

  1. Enter the gross value of the estate (all assets at date of death).
  2. Enter deductions such as debts, funeral expenses, charitable bequests, and the marital deduction.
  3. Enter any prior taxable gifts that reduce the lifetime exemption.
  4. Select whether portability election applies (using a deceased spouse's unused exemption).
  5. View the taxable estate, applicable tax, and effective estate tax rate.

Formula

Taxable Estate = Gross Estate − Deductions Tentative Tax = Graduated rates on (Taxable Estate + Adjusted Taxable Gifts) Estate Tax = Max(0, Tentative Tax − Unified Credit − Gift Tax Paid) Unified Credit (2026) ≈ $5,940,800 (exempts $15M)

Example Calculation

Result: Estimated estate tax: $1,800,000

Gross estate $20M minus $1M deductions = $19M taxable estate. Adding $500K prior gifts gives $19.5M for tentative tax. Tax at graduated rates minus the 2026 unified credit leaves approximately $1.8M in estate tax due. The effective rate is about 9.5% of the taxable estate.

Tips & Best Practices

The Unified Credit System

The estate and gift tax share a single unified credit. This means any taxable gifts you make during your lifetime reduce the exclusion available at death. For 2026, the IRS basic exclusion amount is $15 million per individual, and the calculator applies the statutory rate schedule to the cumulative taxable base before subtracting the unified credit.

Estate Tax Planning Strategies

Common strategies include irrevocable life insurance trusts (ILITs), grantor retained annuity trusts (GRATs), charitable remainder trusts (CRTs), and family limited partnerships. Each reduces the taxable estate in different ways — by removing assets, discounting values, or leveraging the exclusion.

Portability

Portability lets a surviving spouse use a deceased spouse's unused exclusion after a timely Form 706 election. That can materially raise the amount sheltered from federal estate tax for married couples.

Sources & Methodology

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Methodology

This calculator uses the IRS 2026 basic exclusion amount of $15 million and the statutory 18% to 40% federal estate tax rate schedule. It computes tentative tax on taxable estate plus adjusted taxable gifts, subtracts the unified credit equivalent to the 2026 exclusion, and adds any portability amount entered as deceased spousal unused exclusion (DSUE).

The model is intentionally simplified. It does not reproduce every Form 706 adjustment, state death tax deduction, or gift-tax edge case, so it should be treated as a planning estimate rather than a return-preparation tool.

Sources

Frequently Asked Questions

What is the estate tax exemption for 2026?

The federal estate tax basic exclusion amount for 2026 is $15 million per individual. This means estates valued at less than $15 million (after deductions) owe no federal estate tax. Married couples can combine exclusions for up to $30 million using portability.

What are the estate tax rates?

Federal estate tax rates are graduated from 18% on the first $10,000 of taxable amount to 40% on amounts over $1 million. However, the unified credit effectively shelters the first $15 million, so the marginal rate on taxable estates above the exclusion is 40%.

What is portability?

Portability allows a surviving spouse to add the deceased spouse's unused estate tax exemption to their own. This effectively gives a married couple a combined $30 million exclusion in 2026. It requires filing IRS Form 706 after the first spouse's death, even if no tax is owed.

Do all states have estate taxes?

No. Some states and the District of Columbia impose their own estate taxes, often with much lower exemptions. Some states also have inheritance taxes, which are paid by the recipient rather than the estate.

How do lifetime gifts affect estate tax?

Taxable lifetime gifts (above the annual exclusion) reduce your available estate tax exemption. They are added back to the estate for calculating tentative tax, with credit for any gift tax paid. The unified credit system ensures you can't use the exemption twice.

Do I still need estate planning if I am below the 2026 exclusion?

Often yes. The federal estate tax is only one part of the picture. Beneficiary designations, probate avoidance, state estate taxes, liquidity needs, and basis planning can still matter even when no federal estate tax is due.

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