Estate Tax Calculator - Federal Inheritance Tax Estimator

Federal Estate Tax Estimator

Calculate the potential tax liability on your estate and maximize what you leave to your heirs.

Legacy Calculator

Current Exemption: $13,610,000
Assets (Gross Estate)
$
$
$
$
Life insurance is typically included in the gross estate.
Deductions
$
$
Gifts to charity are tax-deductible.
Estimated Federal Tax
$0
Paid to the IRS (40% Rate on Taxable Amount)
Net Estate to Heirs
$0
Gross Estate
$0
Total Deductions
$0
Taxable Value
$0
Planning for the future? Asset values usually rise over time. Use our Inflation Calculator or Investment Calculator to project your future net worth.

What is the Estate Tax?

The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. This tool estimates the US Federal Estate Tax based on current exemption limits.

The "Exemption" Threshold

The most important factor in estate tax is the exemption amount. As of 2024, the federal exemption is $13.61 million per individual.

  • Individuals: If your taxable estate is below $13.61 million, you typically owe $0 in federal estate tax.
  • Married Couples: With "Portability," a couple can combine their exemptions, effectively protecting over $27.22 million from federal taxes.

How the Tax is Calculated

The calculation follows a straightforward logic flow:

Gross Estate (Assets + Insurance)
- Deductions (Debts + Mortgages + Charity + Spousal)
= Taxable Estate
- Exemption Amount
= Value Subject to Tax

Any amount remaining after subtracting the exemption is currently taxed at a rate of 40%.

Strategies to Reduce Estate Tax

  1. Spend It: The easiest way to reduce tax is to enjoy your wealth during your lifetime.
  2. Gifting: You can gift up to $18,000 per year (2024) to as many individuals as you like without it counting against your lifetime exemption.
  3. Charity: Bequests to qualified charities are 100% deductible, reducing your taxable estate dollar-for-dollar.
  4. Trusts: Various trusts (like ILITs for life insurance) can remove assets from your taxable estate.

Disclaimer & Legal Notice

Federal Only: This calculator only estimates US Federal Estate Tax. Many states (like NY, MA, WA) have their own estate or inheritance taxes with much lower exemption thresholds. You may owe state tax even if you owe no federal tax.

Estimates: Tax laws change frequently. The exemption amounts ($13.61M) are scheduled to "sunset" (drop by half) in 2026 unless Congress acts. Long-term planning should consider this risk.

Not Legal Advice: Estate planning is complex legally and financially. This tool is for educational purposes only. Always consult an Estate Planning Attorney or CPA.