About this Estate Tax
The Federal Estate Tax applies only to the transfer of very large estates at death. Thanks to high exemption limits, very few people actually pay it. This tool estimates liability based on current thresholds.
How to use this calculator
- Enter the Total Estate Value (Assets - Debts).
- Select Marital Status (Married couples can combine exemptions via portability).
- The tool calculates the taxable amount and estimated tax.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Total Estate Value
The gross value of everything owned (Real estate, Stocks, Cash, Business interests) minus any debts (Mortgages).
Marital Status
Married couples effectively have double the exemption (~$27.22 Million) if the surviving spouse elects portability.
Understanding your results
Example scenarios
Below Limit
Single person with $5 Million estate. Exemption is $13.61M. Tax = $0.
Above Limit
Single person with $15 Million estate. Taxable amount is ~$1.4M. Estimated tax ~$550k.
Key Features
- 2024 Exemption Limits
- Single/Married Logic
- Flat 40% Estimate
Things to Keep in Mind
Does not calculate State Estate Taxes (which have much lower limits in states like MA, OR, WA). Does not account for complex deductions or the graduated rates on the first $1M of taxable value (simplified to 40%).
Tips & Best Practices
- Gifting assets during your lifetime (up to the annual exclusion limit) reduces your taxable estate.
- Life insurance proceeds are generally included in your taxable estate unless held in an Irrevocable Life Insurance Trust (ILIT).
Glossary of Terms
- Exemption
- The amount of money you can pass to heirs tax-free ($13.61M in 2024).
- Portability
- The ability of a surviving spouse to use the unused portion of their deceased spouse's exemption.