Tax

Estate Tax Calculator

Estimate your 2026 federal estate tax liability with the $13.61M exemption, graduated rates from 18% to 40%, and common deductions.

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Disclaimer: This calculator provides estimates only and does not constitute tax advice. Consult a qualified tax professional. Estate tax laws are complex and vary by state.

About This Tool

The Estate Tax Calculator estimates your 2026 federal estate tax using the current exemption amount and graduated rate schedule. The federal estate tax applies to the transfer of property at death when the estate value exceeds the exemption threshold. For 2026, the exemption is approximately $13.61 million per individual, meaning only estates above this value are subject to federal estate tax.

The calculator accounts for the most common estate tax deductions: the unlimited marital deduction for transfers to a surviving U.S. citizen spouse, charitable deductions for bequests to qualified organizations, and deductions for debts and administration expenses. These deductions reduce the gross estate to arrive at the net estate, from which the federal exemption is then subtracted.

Federal Estate Tax Rate Structure

The federal estate tax uses a graduated rate structure ranging from 18% on the first $10,000 of taxable estate to 40% on amounts exceeding $1 million. However, due to the unified credit (which effectively exempts the first $13.61 million), most estates that owe tax will be paying primarily at the higher brackets. The effective tax rate on the entire estate is typically much lower than the top marginal rate.

Portability and the Unlimited Marital Deduction

The portability provision allows a surviving spouse to use the deceased spouse's unused exemption amount, effectively doubling the exemption for married couples to approximately $27.22 million. This is claimed by filing an estate tax return (Form 706) for the first spouse to die, even if no tax is owed. When combined with the unlimited marital deduction, married couples have substantial flexibility in estate planning.

Estate Planning Considerations

Beyond the federal estate tax, estate planners must consider state estate and inheritance taxes, generation-skipping transfer taxes, and income tax on inherited assets. The step-up in basis at death can significantly reduce capital gains taxes for heirs. Irrevocable life insurance trusts (ILITs), grantor retained annuity trusts (GRATs), and qualified personal residence trusts (QPRTs) are common tools for reducing taxable estate values for high-net-worth individuals.

Frequently Asked Questions

What is the 2026 federal estate tax exemption?
The 2026 federal estate tax exemption is approximately $13.61 million per individual, adjusted for inflation. This means estates valued below this threshold owe no federal estate tax. Married couples can effectively shield up to $27.22 million through portability of the unused exemption. Note: this exemption is set to sunset after 2025 under the Tax Cuts and Jobs Act, potentially reverting to approximately $7 million (adjusted for inflation), but as of 2026 projections it remains at the higher level.
How does the marital deduction work for estate tax?
The unlimited marital deduction allows you to leave any amount to a surviving spouse who is a U.S. citizen without incurring federal estate tax. This effectively defers estate tax until the surviving spouse passes away. However, it does not eliminate the tax -- it merely postpones it. Proper estate planning often involves using trusts to maximize both spouses' exemptions rather than relying solely on the marital deduction.
What is the estate tax rate in 2026?
Federal estate tax rates are graduated from 18% to 40%. However, because of the $13.61 million exemption, the effective rate on the entire estate is much lower than 40%. The 40% rate applies only to the portion of the taxable estate exceeding $1 million above the exemption. For very large estates, the effective rate approaches but never reaches 40%.
Do states have separate estate taxes?
Yes, several states impose their own estate or inheritance taxes with much lower exemption thresholds. States like Massachusetts and Oregon have exemptions as low as $1 million. Washington state has the highest top rate at 20%. Some states have inheritance taxes that are paid by the recipient rather than the estate. This calculator focuses on federal estate tax only; consult a local attorney for state-specific estate tax obligations.
What reduces the value of a taxable estate?
Several deductions reduce the taxable estate: the marital deduction (unlimited transfers to a surviving U.S. citizen spouse), charitable deductions (bequests to qualified charities), debts owed by the decedent, funeral expenses, estate administration costs, and certain losses during estate administration. Life insurance proceeds paid to named beneficiaries generally bypass the estate, but policies owned by the decedent are included in the gross estate.

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