Estate Tax Calculator (Federal & State)
Estimate federal and state estate taxes based on gross estate value, deductions, and applicable exemptions. See your potential estate tax liability instantly.
Calculate Your Estate Tax Liability
Enter your estate details to generate federal and state estate tax estimates. The calculator accounts for gross estate value (including real property, investments, retirement accounts, life insurance proceeds, and business interests), allowable deductions such as the marital deduction, charitable deductions, debts, funeral expenses, and administration costs. Select your state of residence to apply any state-level estate or inheritance tax. The tool applies the current federal graduated rate schedule (18% to 40%), the applicable unified credit exemption, and any portability election from a deceased spouse. Results show the taxable estate, tentative tax, applicable credits, and the net federal and state estate tax due. All thresholds and rates reflect 2026 values as published by the IRS and respective state revenue departments.
Estate Tax Benchmarks
How to Use This Calculator
Enter Gross Estate Value
Input the total fair market value of all assets at date of death. Include real property, bank accounts, brokerage accounts, retirement accounts (IRAs, 401ks), life insurance death benefits, business interests, and personal property. Use current fair market values, not original purchase prices.
Apply Deductions
Enter allowable deductions including the unlimited marital deduction (for assets passing to a surviving U.S. citizen spouse), charitable bequests, debts of the decedent, mortgage balances, funeral expenses, and estate administration costs. These reduce the gross estate to the taxable estate.
Select Your State
Choose the decedent's state of domicile to apply any state estate or inheritance tax. States with estate taxes include Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia. Six states impose inheritance taxes: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
Review Tax Liability
The calculator displays the federal taxable estate, tentative tax, unified credit amount, net federal tax due, applicable state tax, and total combined estate tax liability. Use these figures to evaluate planning strategies like irrevocable life insurance trusts, charitable remainder trusts, or gifting programs.
What This Calculator Helps You Do
- ✓Quickly screen new estate planning clients to determine whether estate tax is a relevant concern for their situation
- ✓Model the impact of different planning strategies such as marital deduction trusts, charitable giving, and lifetime gifting on total tax liability
- ✓Illustrate the tax impact of the 2027 exemption sunset to motivate clients toward proactive planning while the higher exemption is available
- ✓Compare federal-only versus combined federal and state tax exposure for clients in high-tax states like Massachusetts, Oregon, or Washington
- ✓Generate preliminary estimates for client presentations without manual tax table lookups and graduated rate calculations
Frequently Asked Questions
What is the estate tax exemption for 2026?
The federal estate tax exemption for 2026 is $13.99 million per individual ($27.98 million for married couples using portability). This exemption is the amount that can pass free of federal estate tax. However, under the Tax Cuts and Jobs Act of 2017, this elevated exemption is scheduled to sunset on January 1, 2027, reverting to approximately $7 million per individual (indexed for inflation from the pre-TCJA $5 million base). This sunset makes 2026 a critical year for estate planning.
What is the difference between estate tax and inheritance tax?
Estate tax is levied on the estate itself before assets are distributed to beneficiaries. It is based on the total value of the estate. Inheritance tax is levied on the beneficiaries who receive the assets, and the rate often depends on the relationship between the decedent and the beneficiary. Spouses and direct descendants typically pay lower rates or are exempt entirely. Maryland is the only state that imposes both an estate tax and an inheritance tax. Six states impose inheritance taxes only: Iowa, Kentucky, Nebraska, New Jersey, and Pennsylvania.
Does life insurance count toward the estate tax?
Yes. Life insurance death benefits are included in the gross estate if the decedent owned the policy or had any incidents of ownership at the time of death. This is one of the most commonly overlooked estate tax triggers. For example, a client with a $5 million estate and a $3 million life insurance policy has an $8 million gross estate for tax purposes. An Irrevocable Life Insurance Trust (ILIT) is the standard planning tool to remove life insurance proceeds from the taxable estate, but the policy must be transferred or purchased by the trust at least three years before death to avoid the three-year lookback rule under IRC Section 2035.
Automate Your Estate Planning Workflow
InstaThink Legal helps estate planning firms automate document generation, client intake questionnaires, and asset inventories. Produce trust documents, pour-over wills, and funding instructions in a fraction of the time.
Get Started Free