Estate Tax Calculator

Estimated Estate Tax Owed

$0.00

The Numbers

  • Taxable estate (above exemption): $0.00
  • Net to heirs after tax: $2,000,000.00

Compare Calculations

Downloads

Includes your inputs and results for this calculation, plus any additional calculations you've compared.

Good to Know

The federal estate tax exemption amount changes through legislation and annual inflation indexing — verify the current figure against the IRS's own published amount rather than trusting this calculator's default. This also doesn't model marital deduction/exemption portability between spouses, state-level estate or inheritance taxes (many states have their own, often with much lower exemptions), or estate-planning tools like trusts that can reduce a taxable estate.

Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

The federal estate tax only applies to the portion of an estate’s value above a large exemption amount — most estates never owe it at all. Enter the total estate value and the current federal exemption amount, and this calculator estimates the tax owed and what heirs would actually receive.

The exemption amount is set by federal law and adjusted for inflation, and it changes often enough through legislation that this calculator treats it as a plain, editable input rather than a fixed fact — always verify the current exemption amount against the IRS’s own published figures before relying on this estimate, since the number used here may not reflect the current tax year.

The Formula

Estate Tax Owed=max(0,Estate ValueExemption Amount)×40%\text{Estate Tax Owed} = \max(0, \vA{\text{Estate Value}} - \vB{\text{Exemption Amount}}) \times 40\%

The real federal estate tax technically uses a graduated bracket structure, but because the exemption amount is so large, any estate that owes federal tax at all has already cleared the brackets’ own threshold for the top 40% rate — so in practice, the amount above the exemption is taxed at a flat 40%. This is the same simplification most public estate-tax estimates use.

Worked Example

A $2,000,000 estate with a $13,990,000 exemption — a realistic scenario for a financially comfortable household, not just the ultra-wealthy:

  1. Taxable estate: max(0, $2,000,000 − $13,990,000) = $0 — the estate’s entire value falls well under the exemption, so nothing is taxable.
  2. Estate tax owed: $0 × 40% = $0.
  3. Net to heirs: $2,000,000 − $0 = $2,000,000 — the full estate passes to heirs, since it never crossed the exemption threshold in the first place.

A larger estate that does cross the exemption looks different: a $20,000,000 estate against the same $13,990,000 exemption owes tax on the $6,010,000 above it — $6,010,000 × 40% = $2,404,000 owed, leaving $17,596,000 net to heirs.

Source: IRS federal estate tax overview.

Frequently Asked Questions

Do most people need to worry about federal estate tax?

No — the federal exemption is large enough (multiple millions of dollars per person) that the vast majority of estates owe no federal estate tax at all. It's a concern primarily for high-net-worth estates.

Are state estate taxes different from federal estate tax?

Yes, and separately calculated — a number of states impose their own estate or inheritance tax with exemption amounts often far lower than the federal one, meaning an estate that owes nothing federally could still owe state tax. Check your specific state's rules.

Can a married couple combine their exemptions?

Often yes, through a concept called portability — if the first spouse to die doesn't use their full exemption, the unused portion can, with the right election, carry over to the surviving spouse's own estate. This calculator doesn't model that combined-exemption calculation directly.