TopicDrill

Estate Tax Calculator

Estimate the federal estate tax an estate might owe. Enter the gross value, deductions and the lifetime exclusion, then press Calculate to see what is taxable and what reaches your heirs.

Written by TopicDrill Editorial Team·Updated June 2026

Share this calculator

Estate details

Enter the estate value and deductions, then press Calculate.

$
$
$
$
$

Estimated estate tax

$1,804,000

Taxable estate$18,500,000
Above exclusion$4,510,000
Net to heirs$16,696,000
Effective rate9.0%

Estate composition

Gross $20.0M
  • Deductions$1,500,000
  • Sheltered by exclusion$13,990,000
  • Taxable above exclusion$4,510,000
  • Estate tax due$1,804,000

Advertisement

How the estate tax calculator works

Federal estate tax is not charged on the whole value of an estate. The calculator first finds the taxable estate by taking the gross value and removing deductions: outstanding debts and settlement expenses, gifts to charity, and anything passing to a surviving spouse. It then shelters the next slice of value with the lifetime exclusion. Only what remains above the exclusion is taxed.

The bar and breakdown make the structure visible. One band is the value protected by deductions, another is the slice covered by the exclusion, and the final band is the taxable amount that drives the bill. Because the tax applies only to that last band, modest changes to deductions can swing the result sharply.

A quick example

Imagine a 20 million dollar gross estate with 500,000 in debts and expenses and a 1 million dollar charitable bequest. Deductions of 1.5 million leave a taxable estate of 18.5 million. With a 13.99 million dollar exclusion, about 4.51 million is exposed. At a 40 percent rate the estate owes roughly 1.8 million dollars, an effective rate near 9 percent of the gross estate.

Things to keep in mind

This is a planning estimate that applies a single top rate and ignores prior taxable gifts, portability of a spouse's unused exclusion and state estate taxes. Rules and the exclusion amount change, so confirm current figures with the IRS estate tax page and a qualified advisor. To gauge what heirs might keep after income taxes on inherited gains, pair this with our capital gains tax calculator.

Frequently asked questions

How is federal estate tax calculated?

You start with the gross estate, subtract deductions such as debts, funeral and administration expenses, charitable gifts and anything left to a spouse, to reach the taxable estate. Only the portion of the taxable estate above the lifetime exclusion is taxed, at the top federal rate of about 40 percent.

What is the lifetime exclusion?

The lifetime exclusion is the amount each person can pass on free of federal estate tax. Estates valued below the exclusion owe no federal estate tax at all. The figure is set by law and changes over time, so the calculator lets you enter the exclusion that applies to your situation.

Does money left to a spouse or charity get taxed?

Generally no. The unlimited marital deduction lets you pass any amount to a surviving spouse free of estate tax, and gifts to qualified charities are fully deductible. Entering those amounts in the calculator removes them from the taxable estate before the tax is figured.

Is this the same as inheritance tax?

Not quite. Estate tax is paid by the estate before assets are distributed, based on the total value of what the person left. Inheritance tax, where it exists, is paid by the people who receive the assets. This tool estimates federal estate tax and does not cover state-level inheritance taxes.

Related guides

View all →

Advertisement