Federal Estate Tax Calculator

Quick summary

The Federal Estate Tax Calculator answers the only question that matters in estate planning: how much of my estate goes to heirs vs. the IRS?

It applies the brand-new $15 million per person OBBBA exclusion (permanent, indexed), the 40% federal rate on amounts above, the unlimited marital and charitable deductions, the DSUE portability election that lets a surviving spouse use a deceased spouse's unused exclusion (effectively $30M per couple in 2026), and the 13 state estate taxes that have separate, much lower thresholds — Oregon kicks in at $1M, Massachusetts at $2M.

Use it to model bypass trusts, lifetime gifts, marital portability elections, and charitable bequests before probate. The OBBBA's permanent $15M exclusion eliminated federal estate tax for 99% of US households — but the surviving 1% still face 40% federal + up to 20% state on amounts above.

Gross estate (FMV at death)

All real estate, investments, business interests, retirement accounts, life insurance proceeds you control

Debts & expenses

Prior taxable gifts (post-1976)

To surviving spouse

Unlimited marital deduction

Charitable bequests

Ported DSUE from prior spouse

State estate tax (decedent residence)

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How to use

1 Enter the gross estate value — fair market value at date of death, including real estate, retirement accounts, life insurance proceeds owned by decedent, business interests, securities, art.
2 Enter debts and admin expenses (mortgages, loans, funeral costs, executor fees, legal fees) — deductible from gross estate.
3 Enter marital transfer (unlimited deduction to US-citizen spouse) and charitable bequests (unlimited deduction to qualified 501(c)(3) charities).
4 Enter prior taxable gifts after 1976 (eats into your $15M exclusion 1-for-1) and any DSUE inherited from a deceased spouse via portability election on Form 706.
5 Select your state — calculator adds state estate tax if you're in one of the 13 jurisdictions that impose it. Click Calculate to see federal tax, state tax, and net to heirs.

2026 Federal Estate Tax — OBBBA Made $15M Permanent

The One, Big, Beautiful Bill Act (OBBBA, signed July 4, 2025) increased the federal estate and gift tax exclusion to $15 million per person permanently, indexed for inflation. This eliminates the December 31, 2025 sunset that would have rolled the exclusion back to ~$7M.

Year	Exclusion (Single)	Couple (Portability)	Top Rate
2025	$13,990,000	$27,980,000	40%
2026 (OBBBA)	$15,000,000	$30,000,000	40%
2027 estimate	~$15,400,000	~$30,800,000	40%

Key Federal Estate Tax Deductions

Deduction	Amount	Notes
Marital Deduction	Unlimited	To US-citizen surviving spouse only. Non-citizen requires QDOT trust.
Charitable Deduction	Unlimited	Qualified 501(c)(3) public charities and CRTs/CLTs
Debts & Admin	Actual cost	Mortgages, funeral, executor fees, attorney fees, taxes
State Death Tax	Pre-2005 only	Replaced by state-by-state credit; now most states have own tax
DSUE (Portability)	Up to deceased spouse's unused exclusion	Must elect on Form 706 within 5 years of death

13 States + DC With Their Own Estate Tax (2026)

Several states impose estate tax with thresholds far below the federal $15M, catching middle-class families:

State	Exclusion Threshold	Top Rate
Oregon	$1,000,000	16%
Massachusetts	$2,000,000	16%
Rhode Island	$1,800,000 (approx)	16%
Washington	$2,193,000	20% (raised 2025)
Minnesota	$3,000,000	16%
Illinois	$4,000,000	16%
DC	$4,873,200	16%
Maryland	$5,000,000	16%
Vermont	$5,000,000	16%
Hawaii	$5,490,000	20%
Maine	$7,000,000	12%
New York	$7,160,000	16%
Connecticut	$15,000,000 (matches federal)	12%

6 states impose inheritance tax (paid by heirs, not estate): Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania. Maryland is the only state with both estate AND inheritance tax.

Why Form 706 Matters Even Below the Exclusion

If your estate is below the $15M federal exclusion, you generally don't owe federal estate tax — but the surviving spouse should still file Form 706 within 9 months of death (with 6-month extension available) to elect portability. This preserves the unused exclusion (DSUE) for the surviving spouse, effectively doubling the household exclusion to $30M. Without portability election, the unused exclusion is lost forever.

FAQ

Q What is the federal estate tax exclusion in 2026?

$15 million per person, made permanent by the One, Big, Beautiful Bill Act (OBBBA) signed July 4, 2025. Married couples can effectively double this to $30 million via portability election on Form 706. Indexed for inflation each year going forward.

Q Do I have to pay federal estate tax?

Only if your taxable estate exceeds $15 million in 2026. About 99% of US estates fall below this threshold. The federal rate above $15M is 40%. State estate tax (13 states + DC) often kicks in much lower — Oregon at $1M, Massachusetts at $2M.

Q What is portability and DSUE?

Portability lets a surviving spouse use the deceased spouse's unused exclusion (DSUE — Deceased Spousal Unused Exclusion). To claim it, the executor must file Form 706 within 9 months of death (with extension up to 5 years for late portability). Without filing, DSUE is lost forever.

Q Which states have estate tax?

12 states + DC: Oregon ($1M), Massachusetts ($2M), Washington ($2.193M, raised 2025), Rhode Island ($1.8M), Minnesota ($3M), Illinois ($4M), DC ($4.87M), Maryland ($5M), Vermont ($5M), Hawaii ($5.49M), Maine ($7M), New York ($7.16M), Connecticut ($15M).

Q What is the difference between estate tax and inheritance tax?

Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the heirs after they receive assets. 12 states + DC have estate tax; 6 states (IA, KY, MD, NE, NJ, PA) have inheritance tax. Maryland has BOTH. Federal has only estate tax, no inheritance tax.

Q Are life insurance proceeds taxable in an estate?

They are includable in the gross estate if the decedent owned the policy or had "incidents of ownership" (could change beneficiary, borrow against, etc.). Unlimited income tax exemption for beneficiaries — but ESTATE tax can still apply. Solution: have the policy owned by an Irrevocable Life Insurance Trust (ILIT).

Q How does the marital deduction work?

Unlimited transfers to a US-citizen surviving spouse are estate-tax-free under IRC §2056. This pushes all federal estate tax to the second spouse's death — combined with portability, allows up to $30M per couple to pass tax-free in 2026. Non-citizen spouse requires a Qualified Domestic Trust (QDOT).

Q When is Form 706 required?

Required if (a) gross estate > $15M federal exclusion in 2026, OR (b) executor wants to elect portability of DSUE for the surviving spouse, OR (c) state estate tax applies. Filed within 9 months of death; 6-month extension available via Form 4768. Late portability allowed up to 5 years.

Official resources

IRS — Estate Tax Overview

Internal Revenue Service official guide to federal estate tax, exclusion amounts, Form 706 filing, and portability election.

IRS Form 706 — United States Estate (and GST) Tax Return

Official IRS Form 706 used to file federal estate tax returns and elect DSUE portability for the surviving spouse.

IRS Rev. Proc. 2025-32 — 2026 Inflation Adjustments

Official IRS Revenue Procedure setting the $15 million 2026 estate exclusion under the OBBBA.

Tax Foundation — State Estate and Inheritance Taxes

Tax Foundation comprehensive map of all 12 states + DC with estate tax and 6 states with inheritance tax thresholds.

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