Estate Tax Calculator
Calculate federal estate tax on your assets. Estimate the tax due on your estate based on 2025 exemption limits and progressive tax rates.
Table of Contents
▼ Modify the values and click the Calculate button to use
📊 Assets
Primary home, rental properties, land
Securities portfolio, mutual funds
Bank and savings accounts
Cars, boats, collectibles
Balance at death
Death benefit included in estate
Business interests, art, jewelry, etc.
💳 Liabilities, Costs, and Deductibles
Charitable bequests deductible from estate
Estimated state estate taxes
🎁 Lifetime Gifted Amount
Gifts exceeding annual exclusion ($19,000/person in 2025)
⚖️ Filing Information
2025 exemption limits
Affects exemption amount
Estate Tax Calculation Results
Total Assets:
$0.00
Total Liabilities & Deductions:
$0.00
Gross Estate (After Deductions):
$0.00
Lifetime Gifts Used:
$0.00
Applicable Exemption (2025):
$13,990,000.00
Taxable Estate:
$0.00
Federal Estate Tax Due:
$0.00
Effective Tax Rate:
0.00%
Estate Tax Calculation Formulas
Gross Estate Calculation
Gross Estate = Total Assets − Liabilities − Charitable Contributions − Funeral Expenses
Adjusted Taxable Estate
Adjusted Taxable Estate = Gross Estate + Lifetime Gifts (over exclusion)
Taxable Estate
Taxable Estate = Gross Estate − Federal Exemption
If Taxable Estate ≤ $0: No federal estate tax due
If Taxable Estate ≤ $0: No federal estate tax due
Federal Estate Tax (Progressive Brackets)
Federal Estate Tax = Tax Calculated on Each Bracket
Rates range from 18% to 40% based on taxable estate amount
Rates range from 18% to 40% based on taxable estate amount
2025 Exemption Amounts
Single Filer: $13,990,000
Married (Portability): $27,980,000
Annual Gift Exclusion: $19,000 per person per year
Married (Portability): $27,980,000
Annual Gift Exclusion: $19,000 per person per year
Effective Tax Rate
Effective Tax Rate = (Federal Estate Tax ÷ Gross Estate) × 100%
Example Calculation
Scenario: Estate of $15 million (single filer)
Exemption: $13.99 million
Taxable Estate: $15M − $13.99M = $1.01M
Tax Calculation: $345,800 + 40% of ($1,010,000 − $1,000,000)
= $345,800 + $4,000 = $349,800
Exemption: $13.99 million
Taxable Estate: $15M − $13.99M = $1.01M
Tax Calculation: $345,800 + 40% of ($1,010,000 − $1,000,000)
= $345,800 + $4,000 = $349,800
2025 Federal Estate Tax Rates & Brackets
Estate Tax Rate Schedule
| Taxable Estate Range | Base Tax | Rate on Excess |
|---|---|---|
| $0 – $10,000 | $0 | 18% |
| $10,001 – $20,000 | $1,800 | 20% |
| $20,001 – $40,000 | $3,800 | 22% |
| $40,001 – $60,000 | $8,200 | 24% |
| $60,001 – $80,000 | $13,000 | 26% |
| $80,001 – $100,000 | $18,200 | 28% |
| $100,001 – $150,000 | $23,800 | 30% |
| $150,001 – $250,000 | $38,800 | 32% |
| $250,001 – $500,000 | $70,800 | 34% |
| $500,001 – $750,000 | $155,800 | 37% |
| $750,001 – $1,000,000 | $248,300 | 39% |
| $1,000,001+ | $345,800 | 40% |
Historical Exemption Amounts
| Year | Individual Exemption | Married Exemption | Tax Rate |
|---|---|---|---|
| 2020 | $11,580,000 | $23,160,000 | 40% |
| 2021 | $11,700,000 | $23,400,000 | 40% |
| 2022 | $12,060,000 | $24,120,000 | 40% |
| 2023 | $12,920,000 | $25,840,000 | 40% |
| 2024 | $13,610,000 | $27,220,000 | 40% |
| 2025 | $13,990,000 | $27,980,000 | 40% |
| 2026+ | ~$7,000,000* | ~$14,000,000* | 40% |
*Projected post-TCJA expiration; subject to congressional action
Estate Tax Planning Strategies
Strategy 1: Maximize Lifetime Exemption in 2025
With the 2025 exemption at $13.99 million (vs. potentially ~$7 million in 2026), use lifetime gifting strategically. Consider gifting appreciated assets to lock in current valuations and exclude future growth from your taxable estate.
Strategy 2: Spousal Exemption Portability
Married couples can elect portability, allowing the surviving spouse to use any unused exemption of the deceased spouse. File Form 706 within 9 months of death to preserve unused exemption. This potentially doubles the exemption to $27.98 million.
Strategy 3: Annual Gift Tax Exclusion ($19,000)
In 2025, you can gift $19,000 per person per year tax-free without using any lifetime exemption. A married couple can gift $38,000 annually to multiple recipients without any estate/gift tax consequences.
Strategy 4: Charitable Giving
Charitable contributions reduce your taxable estate dollar-for-dollar. Consider Charitable Remainder Trusts (CRTs), Donor-Advised Funds (DAFs), or direct charitable bequests in your will.
Strategy 5: Irrevocable Life Insurance Trusts (ILITs)
Remove life insurance proceeds from your taxable estate by placing policies in an ILIT. The trust owns the policy, and death benefits bypass your estate, saving 40% in federal estate taxes.
Strategy 6: Grantor Retained Annuity Trusts (GRATs)
Transfer appreciated assets to a GRAT, receive annuity payments during the trust term, and remainder transfers to heirs at discounted value for estate tax purposes.
Strategy 7: Business Valuation Discounts
Use minority interest discounts and lack of marketability discounts (LMVD) when valuing closely-held businesses, real estate partnerships, or family limited partnerships for estate tax purposes.
Strategy 8: Dynasty Trusts
Establish generation-skipping transfer (GST) trusts to minimize taxes for multiple generations. Dynasty trusts can continue indefinitely in some states, protecting wealth for centuries.
⚠️ TCJA Sunset Provision: Current high exemptions expire December 31, 2025. Unless Congress acts, exemptions will drop to ~$7 million (adjusted for inflation) in 2026. This makes 2025 a critical planning year for wealthy estates.
💡 Professional Planning Recommended: Estate tax planning is complex. Consult with an estate planning attorney and CPA or tax professional to develop a strategy tailored to your specific situation, family goals, and assets.
Frequently Asked Questions
What is the federal estate tax exemption for 2025?
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The 2025 federal estate tax exemption is $13,990,000 for individuals and $27,980,000 for married couples using spousal portability. Any estate valued below these amounts owes no federal estate tax. However, this exemption is scheduled to drop to approximately $7 million (adjusted for inflation) starting in 2026 unless Congress extends the current law.
What assets are included in a taxable estate?
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Included assets: all real estate you own, bank accounts and savings, investments (stocks, bonds, mutual funds), retirement accounts (401k, IRA balances at death), life insurance death benefits (if you owned the policy), business interests, vehicles, personal property, and any other assets you own at death. Excluded: property held jointly with right of survivorship, assets with named beneficiaries (if properly designated), and certain assets transferred to trusts.
What is the federal estate tax rate?
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Federal estate tax uses a progressive rate structure ranging from 18% to 40%. The rate depends on the amount of your taxable estate (gross estate minus exemptions and deductions). For example, on a taxable estate of $1 million, you'd pay $345,800 base tax plus 40% of the amount exceeding $1 million.
Can I reduce my estate tax through gifts?
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Yes. You can gift $19,000 per person per year in 2025 without affecting your lifetime exemption. Gifts exceeding this amount use your $13.99 million lifetime exemption. Strategic gifting of appreciated assets during life locks in current valuations and removes future growth from your taxable estate, saving 40% in federal taxes. This is especially powerful for high-growth assets.
What is spousal portability?
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Portability allows married couples to combine their exemptions, effectively allowing $27.98 million in 2025 without federal estate tax. When the first spouse dies, any unused exemption can be transferred to the surviving spouse. The executor must elect portability on Form 706 within 9 months of the first death to preserve the unused exemption.
Do states have their own estate taxes?
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Yes, some states impose their own estate or inheritance taxes on top of federal taxes. States with estate taxes include New York, Illinois, Massachusetts, Connecticut, and others with exemptions ranging from $1-6.4 million and rates up to 16%. Some states have no estate tax (California, Texas, Florida). This calculator focuses on federal tax; consult a tax professional for state-specific implications.
What happens after the 2025 exemption expires?
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Unless Congress acts, the exemption will drop to approximately $7 million per individual (adjusted for inflation) starting January 1, 2026. This is the "sunset" of the Tax Cuts and Jobs Act (TCJA). The 40% federal tax rate would remain, but significantly more estates would owe taxes. This makes 2025 a critical planning year for large estates.
What deductions reduce my taxable estate?
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Deductions that reduce your taxable estate include: funeral expenses, estate administration costs, debts (mortgages, loans), charitable contributions, and state estate/inheritance taxes. Marital deductions (transfers to surviving spouse) also reduce the taxable estate. These deductions can significantly reduce or eliminate estate tax liability for some estates.
Is this calculator accurate for my specific situation?
This calculator provides general estimates using 2025 federal rates and exemptions. It's accurate for straightforward estates without complex trusts, life insurance trusts (ILITs), or generation-skipping transfers. For complex situations, high-value estates, business interests, international assets, or state-specific implications, consult an estate planning attorney and tax professional. Estate tax planning is highly individualized and requires professional guidance.