Estate Tax Calculator
How federal estate tax works
An estate may deduct debts, administration costs, and charitable bequests from its gross value. Only the portion of the remaining taxable estate that exceeds the federal exemption is taxed, at a flat 40% under current law. Most estates fall far below the exemption, so federal estate tax affects only the wealthiest households — but the exemption is set by legislation and has changed repeatedly.
State estate and inheritance taxes
A number of states impose their own estate tax with much lower exemptions than the federal one, and a few states tax heirs directly through inheritance taxes whose rates depend on the heir's relationship to the deceased. This calculator uses a single state rate you supply and applies it to the entire taxable estate as a rough planning figure — check your state's actual exemption and rate schedule.
Frequently Asked Questions
Which year’s exemption does this use?
The 2026 federal basic exclusion amount of $13.99 million per person. Congress adjusts or rewrites this figure periodically, so verify the current law for any real planning decision.
Is estate tax the same as inheritance tax?
No. An estate tax is paid out of the estate before distribution; an inheritance tax is paid by the beneficiary on what they receive, and many states exempt close relatives from it. This tool estimates estate-level tax only.