Estate Tax Liability Estimator
Estimate your potential federal estate tax liability based on your gross estate, allowable deductions, and the current unified credit exemption.
Total fair market value of all assets owned at death (real estate, investments, business interests, retirement accounts, life insurance, etc.)
Outstanding mortgages, loans, and other personal debts owed at death.
Funeral costs, executor fees, attorney fees, accounting fees, and other settlement costs.
Assets passing outright to a U.S. citizen surviving spouse qualify for an unlimited marital deduction.
Bequests to qualifying charitable organizations are fully deductible.
Taxable gifts made after December 31, 1976 that exceeded the annual exclusion and were reported on Form 709.
The Tax Cuts and Jobs Act (TCJA) doubled the exemption through 2025; it is scheduled to revert in 2026.
Formula & Methodology
Federal Estate Tax (IRC §§ 2001–2058):
- Adjusted Gross Estate = Gross Estate − Mortgages & Debts − Administration Expenses
- Taxable Estate = Adjusted Gross Estate − Marital Deduction − Charitable Deduction
- Tentative Tax Base = Taxable Estate + Prior Taxable Gifts (post-1976)
- Tentative Tax = Apply unified rate schedule (18%–40%) to Tentative Tax Base
- Net Tentative Tax = Tentative Tax on Base − Tentative Tax on Prior Gifts
- Unified Credit = Tentative Tax computed on the applicable exemption amount
- Federal Estate Tax Due = max(0, Net Tentative Tax − Unified Credit)
Unified Rate Schedule (IRC § 2001(c)):
$0–$10K: 18% | $10K–$20K: 20% | $20K–$40K: 22% | $40K–$60K: 24% | $60K–$80K: 26% |
$80K–$100K: 28% | $100K–$150K: 30% | $150K–$250K: 32% | $250K–$500K: 34% |
$500K–$750K: 37% | $750K–$1M: 39% | Over $1M: 40%
State Estate Tax: Simplified estimate using the state's top marginal rate applied to the amount of the taxable estate exceeding the state exemption. Actual state calculations use their own progressive brackets and deduction rules.
Assumptions & References
- Federal exemption for 2024 is $13,610,000 per individual (IRS Rev. Proc. 2023-34); married couples may effectively double this via portability (IRC § 2010(c)).
- The Tax Cuts and Jobs Act (TCJA) doubled the exemption through December 31, 2025. Without Congressional action, it reverts to ~$5–6M (inflation-adjusted) in 2026.
- The unlimited marital deduction (IRC § 2056) applies only to assets passing to a U.S. citizen surviving spouse. A Qualified Domestic Trust (QDOT) is required for non-citizen spouses.
- The unlimited charitable deduction (IRC § 2055) applies to bequests to qualifying 501(c)(3) organizations.
- Life insurance proceeds are included in the gross estate if the decedent held any incidents of ownership (IRC § 2042). An Irrevocable Life Insurance Trust (ILIT) can remove them.
- Retirement accounts (IRAs, 401(k)s) are generally included in the gross estate at fair market value.
- This tool does not account for the Generation-Skipping Transfer (GST) Tax (IRC § 2601), special use valuation (§ 2032A), or installment payment elections (§ 6166).
- State estate tax figures are simplified estimates. Twelve U.S. states and D.C. impose a separate estate tax as of 2024.
- This calculator is for educational and planning purposes only. Consult a qualified estate planning attorney and CPA for advice specific to your situation.
- References: IRC §§ 2001–2058; IRS Form 706; IRS Publication 559; Rev. Proc. 2023-34.