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Estimated Estate Tax
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Taxable Estate
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Net to Heirs
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Estimate potential federal estate tax exposure based on your estate value and lifetime exemption.
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Taxable Estate
$0
Net to Heirs
$0
Subtract the lifetime exemption from the total estate value to find the taxable estate, then apply the top estate tax rate to that remainder. If the estate value is below the exemption, no federal estate tax applies.
Estate Tax = (Estate Value − Lifetime Exemption) × Tax Rate, if positive
The federal estate tax exemption is set very high, meaning the overwhelming majority of estates in the United States fall entirely below the threshold and owe no federal estate tax whatsoever. This calculator is primarily useful for high-net-worth individuals and families whose combined assets (real estate, investments, business interests, life insurance proceeds) approach or exceed the exemption amount.
The federal estate tax exemption is adjusted periodically for inflation and has also been subject to significant legislative changes, sometimes scheduled to change substantially at a future date under existing law. Because of this, it's important to check the current exemption figure directly from the IRS rather than relying on a fixed number, especially when doing longer-term estate planning.
Through an election called "portability," a surviving spouse can claim any unused portion of a deceased spouse's federal estate tax exemption, effectively allowing a married couple to shield a combined amount close to double the individual exemption from federal estate tax. This requires filing a timely estate tax return for the first spouse to pass, even if no tax is owed, to preserve the unused exemption.
Several states impose their own estate or inheritance tax with exemption thresholds often much lower than the federal amount, meaning an estate that owes no federal estate tax could still owe state-level tax depending on where the deceased lived or where property is located. State rules vary significantly, so this calculator's federal-only estimate should be paired with state-specific research where relevant.
The federal estate tax exemption is the amount of an estate that can pass to heirs without triggering federal estate tax. It is a very large amount per person, adjusted periodically for inflation and subject to change through legislation, so only a small percentage of estates ever owe federal estate tax.
No. Because the federal exemption is very high, the vast majority of estates fall well below the threshold and owe no federal estate tax. Estate tax primarily affects high-net-worth individuals, though some states impose their own separate, often lower, estate or inheritance tax thresholds.
Yes, through 'portability.' A surviving spouse can generally use any unused portion of a deceased spouse's federal estate tax exemption, effectively doubling the exemption available to the couple, provided the necessary election is filed on a timely estate tax return.
Calculate gifting limits with the Gift Tax Exclusion Calculator, or check your overall net worth with the Net Worth Calculator.
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