Estate Tax Calculator

Calculate federal estate tax liability for estate planning purposes.

Taxable Estate = Total Estate - Exemption; Tax = Progressive rates 18%-40% on taxable amount
$20 million estate in 2026: Exemption = $14.38M, Taxable = $5.62M, Tax ≈ $2.25M (40% rate)

What is the federal estate tax exemption?

The federal estate tax exemption for 2026 is estimated at $14.38 million per individual ($28.76 million for married couples). Estates below this amount owe no federal estate tax. This exemption is indexed for inflation annually and is scheduled to sunset in 2026, potentially reverting to $7 million (indexed).

What is the estate tax rate?

Federal estate tax rates range from 18% to 40% on the taxable portion of the estate (amount above the exemption). Most large estates pay the top rate of 40%. The tax is calculated using a progressive rate structure similar to income tax brackets.

Do all states have estate tax?

No. Only 12 states and DC have estate taxes with their own exemptions and rates: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. State exemptions range from $1 million to $13 million.

How can I reduce estate taxes?

Common strategies include: annual gift tax exclusions ($18,000/person in 2026), irrevocable life insurance trusts, charitable donations, establishing trusts (GRAT, QPRT), and lifetime gifting. Consult an estate planning attorney for personalized strategies.