finance calculator
Estimate federal and state estate and gift tax liabilities, applicable exemptions, and net inheritance passed on to heirs.
The taxable estate is the gross estate minus liabilities and charitable bequests. Federal estate tax is 40% of the amount above the exclusion, $15,000,000 per person in 2026 and doubled for a married couple; state tax applies its own rate above a separate exemption. A $20,000,000 estate with $1,000,000 of debts and $1,000,000 left to charity is $18,000,000 taxable: $1,200,000 federal tax, plus $1,560,000 at a 12% state rate above $5,000,000.
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Net Estate to Heirs
$15,240,000
Total Estate Taxes Owed
$2,760,000
Tip
Estate tax exclusions and state tax rules adjust annually. Save this page to recalculate liabilities and exemption utilization when asset values or tax laws are updated.
Summary
Net to Heirs
$15,240,000
After-tax inheritance.
Total Taxes
$2,760,000
Combined federal & state liabilities.
Taxable Estate
$18,000,000
Gross minus liabilities & deductions.
Federal Exemption
$15,000,000
Effective exclusion limit used.
Breakdown
Tax liabilities vs. net distribution to heirs.
| Item | Value |
|---|---|
| Net to Heirs | $15,240,000 |
| Federal Estate Tax | $1,200,000 |
| State Estate Tax | $1,560,000 |
Guide
The federal estate tax is a levy on the transfer of a deceased person's estate to their heirs, applicable when the total taxable estate value exceeds the lifetime exclusion limit.
The federal gift tax applies to transfers made during an individual's lifetime, sharing a unified credit with the estate tax. This means that taxable gifts made during your lifetime reduce the remaining exclusion limit available at death.
Enter your gross estate value (the total market value of real estate, investments, business interests, retirement accounts, and life insurance you own), outstanding liabilities, any charitable bequests, and your marital status.
The calculator applies the federal exclusion limit (and doubles it automatically for married filers claiming portability), layers in a state estate tax if applicable, and returns the federal tax, state tax, total tax, and net amount passed to your heirs.
To determine the estate tax liability, we first calculate the Gross Estate (market value of all assets, including real estate, investments, business interests, and life insurance policies).
The Taxable Estate is calculated by subtracting allowable deductions from the Gross Estate:
Taxable Estate = Gross Estate - Liabilities - Funeral & Admin Expenses - Marital Deductions - Charitable Bequests
Where Marital Deductions allow unlimited tax-free transfers to a surviving spouse who is a US citizen.
Gross estate $20,000,000, liabilities $1,000,000, charitable bequests $1,000,000, single filer, federal exclusion $15,000,000, state exemption $5,000,000, state estate tax rate 12%.
Taxable estate: $20,000,000 − $1,000,000 − $1,000,000 = $18,000,000.
Effective federal exclusion (single, no portability): $15,000,000, 100% utilized.
Federal estate tax: applied to the taxable estate above the federal exclusion at 40%, so ($18,000,000 − $15,000,000) × 40% = $1,200,000.
State estate tax: applied to the taxable estate above the $5,000,000 state exemption at 12%, so ($18,000,000 − $5,000,000) × 12% = $1,560,000.
Total estate taxes: $1,200,000 + $1,560,000 = $2,760,000.
Net estate passed to heirs: $18,000,000 − $2,760,000 = $15,240,000, meaning roughly 13.8% of the original gross estate value goes to federal and state estate taxes combined in this scenario. Note that this calculator applies the federal and state taxes independently; a filed return deducts state estate tax paid from the federal taxable base, which would lower the federal figure.
The federal lifetime estate tax exclusion (default $15,000,000, the IRS basic exclusion amount for deaths in 2026) represents the amount an individual can transfer to heirs tax-free.
Under current tax laws, exemption portability allows a surviving spouse to utilize any unused portion of their deceased spouse's exclusion limit (DSUE), effectively doubling the exclusion limit for married couples to $30,000,000:
Effective Exclusion = Federal Exclusion, if Single; 2 × Federal Exclusion, if Married
Running the same $20,000,000 estate as married with full portability (effective exclusion $30,000,000) instead of single would eliminate the federal estate tax entirely, since the taxable estate of $18,000,000 falls under the doubled exclusion, leaving only the state estate tax as a liability. Marital status alone can be worth well over a million dollars in federal tax exposure.
In addition to federal estate taxes, many states levy their own estate or inheritance taxes. State estate tax exemptions are typically much lower than the federal limit (often starting at $1,000,000 to $5,000,000).
State estate tax paid is generally deductible against the federal gross estate, reducing the federal taxable estate balance:
Federal Estate Tax = max(0, Taxable Estate - State Estate Tax - Federal Exemption) × Federal Tax Rate
Heirs typically receive a stepped-up cost basis on inherited assets. Model what a later sale would owe with the capital gains calculator, and fold this estate plan into a broader retirement projection with the retirement calculator.
Exemption Portability
The transfer of unused estate tax exemption to a surviving spouse.
Unified Credit
The tax credit combining lifetime gift and estate tax exemptions.
Gross Estate
The total fair market value of all assets owned by an individual at death.
Charitable Bequest
A gift of assets to a qualified charity made through a will or estate plan, fully deductible from the taxable estate.
Formula
Taxable Estate = Gross Estate - Liabilities - BequestsTaxable estate is gross asset value minus liabilities and charitable allocations.
Step by step
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Last updated . This is the date the calculator or its guidance last changed, taken from our revision history rather than from the last time the site was deployed.
This calculator implements published formulas. Each source below is the primary reference for a specific part of the calculation, so you can verify the result independently.
Internal Revenue Service
The $15,000,000 basic exclusion amount for deaths in 2026, used as the default federal exemption. The calculator doubles it for a married couple, which assumes the surviving spouse's executor elects portability of the unused exclusion.
Legal Information Institute, Cornell Law School (text of the Internal Revenue Code)
The rate schedule in subsection (c), whose top bracket taxes amounts over $1,000,000 at 40 percent. The exclusion's credit absorbs every lower bracket, so the tax on an estate above the exclusion is 40% of the excess, which is how the calculator applies it.
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