Taxes
Estate Tax Calculator
The federal estate tax exemption is very high, so the vast majority of estates owe nothing federally. But a dozen-odd states levy their own estate tax at far lower thresholds, and a large estate above the federal exemption is taxed at 40% on the excess.
Formula shown below · Tested against worked examplesHow we verify
Everything you own — property, investments, business interests, life insurance you control.
Mortgages, funeral and administration costs, deductible from the estate.
Anything left to a US-citizen spouse passes estate-tax-free.
Per person for 2026 — confirm the current figure, it has changed with recent law.
0 if your state has no estate tax.
0 if your state has no estate tax. Rates run roughly 10–20%.
Estimated estate tax: $3,900,000
Estimated estate tax
$3,900,000
An effective 19.5% of the gross estate.
Estate tax is highly reducible with planning: the unlimited marital deduction, lifetime gifting, irrevocable trusts, and charitable bequests all shrink the taxable estate. These figures are a starting point for a conversation with an estate attorney, not a settled bill.
- Taxable estate
- $19,500,000
- Above the federal exemption
- $4,500,000
- Federal estate tax (40%)
- $1,800,000
- State estate tax
- $2,100,000
- Net to heirs
- $15,600,000
Compare scenariosTry three values of one input
| Gross estate | |||
|---|---|---|---|
| Estimated estate tax | $2,860,000 | $3,900,000+$1,040,000 | $4,940,000+$2,080,000 |
| Taxable estate | $17,500,000 | $19,500,000+$2,000,000 | $21,500,000+$4,000,000 |
| Above the federal exemption | $2,500,000 | $4,500,000+$2,000,000 | $6,500,000+$4,000,000 |
| Federal estate tax (40%) | $1,000,000 | $1,800,000+$800,000 | $2,600,000+$1,600,000 |
| State estate tax | $1,860,000 | $2,100,000+$240,000 | $2,340,000+$480,000 |
| Net to heirs | $14,640,000 | $15,600,000+$960,000 | $16,560,000+$1,920,000 |
Every other input stays at the value you set above — currently $20,000,000 for gross estate. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
The taxable estate is the gross estate minus debts, expenses, and anything left to a spouse. Federal tax is 40% of the amount above the federal exemption; state tax applies your state's rate to the amount above its own, lower exemption. Net to heirs is the gross estate less debts and total tax.
The federal exemption and state figures are inputs because they change with legislation and vary by state — verify the current amounts. The federal tax is modelled as a flat 40% on the excess, which is close to the true graduated schedule at the top. Gift-tax history, generation-skipping tax, and trust structures are not modelled; this is a planning estimate.
Formula
Taxable estate = Gross − Debts − Marital deduction
Federal tax = max(0, Taxable − Exemption) × rate
State tax = max(0, Taxable − State exemption) × state rate- Gross
- Everything owned at death, at fair market value
- Marital deduction
- Transfers to a surviving spouse, generally unlimited
- Exemption
- The federal exclusion amount in force
Portability between spouses is not applied automatically — it requires a timely filed return. Several states levy their own estate or inheritance tax at thresholds far below the federal one.
What this assumes
- The federal exemption as entered. It is scheduled to change, and several states levy their own estate or inheritance tax at far lower thresholds.
- Portability between spouses is not applied automatically — it requires a timely filed return to claim.
- Trusts, gifting strategies and business valuation discounts are excluded. This is an estimate of exposure, not a plan.
What changes this number
- The exemption in force at death
- Not knowable in advance, and the single largest uncertainty in any estate projection.
- State of residence
- Several states tax estates far below the federal threshold, which catches families who assumed they were well under.
- Lifetime gifting
- Reduces the taxable estate, and annual exclusion gifts do not consume the lifetime exemption.
A worked example
Take the $20m estate, taxable state scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Gross estate
- $20,000,000
- Federal exemption
- $15,000,000
- State exemption
- $2,000,000
- State estate tax rate
- 12%
What it returns
- Estimated estate tax
- $3,900,000
- Taxable estate
- $19,500,000
- Above the federal exemption
- $4,500,000
- Federal estate tax (40%)
- $1,800,000
- State estate tax
- $2,100,000
Estate tax is highly reducible with planning: the unlimited marital deduction, lifetime gifting, irrevocable trusts, and charitable bequests all shrink the taxable estate. These figures are a starting point for a conversation with an estate attorney, not a settled bill.
Sources
This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.
Calculator last reviewed August 9, 2026. How we verify
Try an example
Frequently asked questions
How much can you inherit without paying estate tax?
Federally, a great deal — the exemption is in the eight-figure range per person and portable between spouses, so most estates owe nothing. But a dozen-plus states impose their own estate or inheritance tax at thresholds as low as $1–2 million, which catches far more families.
What is the federal estate tax rate?
40% on the amount above the exemption. It is a flat top rate applied to the excess, not the whole estate — an estate a million dollars over the exemption owes roughly $400,000, not 40% of everything. Only the portion above the exemption is taxed.
What is the marital deduction?
Anything left to a US-citizen spouse passes free of estate tax, without limit. It defers the tax rather than eliminating it — the assets are taxed in the surviving spouse's estate later — but combined with exemption portability, it lets a couple pass roughly double the individual exemption tax-free.
Which states have an estate or inheritance tax?
Around a dozen states plus DC levy an estate tax, and a handful impose an inheritance tax paid by the recipient. Thresholds and rates vary widely, and some are far below the federal exemption. Because this is where most estate tax is actually owed, your state rules matter more than the federal ones for typical estates.
How can estate tax be reduced?
Through the marital deduction, annual and lifetime gifting that moves assets out of the estate, irrevocable trusts, charitable bequests, and life insurance held in a trust so it is not counted. These are the province of an estate attorney — the potential savings on a taxable estate far exceed the planning cost.
Is the federal exemption permanent?
It has changed repeatedly with legislation and is indexed for inflation, so the figure moves. This calculator takes the exemption as an input for that reason — enter the current amount rather than assuming, since a large change can flip an estate from taxable to exempt or back.
Related calculators
Net Worth Calculator
Calculate your net worth the way advisors do: everything you own minus everything you owe, with your debt-to-asset ratio as a health check.
Life Insurance Needs Calculator
How much life insurance do you need? Add up income replacement, the mortgage, debts, and education, subtract what you already have, and see the coverage gap.
Capital Gains Tax Calculator
Estimate the tax on an investment sale and what you keep — and compare the long-term rate against the far higher one that applies if you sell too soon.
Umbrella Insurance Calculator
Size an umbrella liability policy against what a lawsuit could actually reach — your net worth plus future income — above the limits your auto and home policies carry.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.