Federal Estate Tax Calculator 2025
This calculator estimates your 2025 federal estate tax liability. The 2025 basic exclusion amount (exemption) is 13,990,000 per person, per IRS Rev. Proc. 2024-40, which means estates passing at death below this amount owe no federal estate tax. For estates above the exemption, the federal rate is a flat 40%. Enter your gross estate (all assets, real property, investments, retirement accounts, life insurance, business interests), deductions (debts, mortgages, charitable bequests, marital deduction for assets passing to a US citizen spouse), prior taxable gifts made during life, and the Deceased Spouse's Unused Exclusion (DSUE) if you are a surviving spouse. The calculator computes the taxable estate, applies the exemption, and calculates the 40% federal tax. A critical note: the 13,990,000 exemption is scheduled to sunset after December 31, 2025, reverting to approximately 7,000,000 (adjusted for inflation) unless Congress extends it. This calculator is essential for estate planning for high-net-worth individuals, married couples considering portability elections, and business owners evaluating succession strategies. State estate taxes are not included; many states have separate, lower exemptions.
With a gross estate of $5,000,000 and deductions of $500,000, the taxable estate is $4,500,000, which is below the 2025 exemption of $13,990,000. Federal estate tax owed: --.
2025 sunset notice: The $13,990,000 exemption is scheduled to be reduced to approximately $7,000,000 when Tax Cuts and Jobs Act provisions expire after December 31, 2025, unless Congress acts to extend them. Source: IRS Estate Tax.
Gross estate
Deductions
Lifetime gifts and portability
How the federal estate tax is calculated
The federal estate tax applies to the transfer of a taxable estate at death. The unified credit system integrates the estate tax with the gift tax (both governed by IRC Chapters 11 and 12 and the unified credit under IRC Section 2010). The 2025 figures are from IRS Rev Proc 2024-40.
Taxable estate = gross estate - debts - charitable bequests - marital deduction
Tentative tax base = taxable estate + prior taxable gifts
Total exemption = $13,990,000 (basic) + DSUE (portability)
Amount subject to tax = max(0, tentative tax base - total exemption)
Federal estate tax = amount subject to tax x 40%
Worked example
Gross estate $10,000,000, debts $500,000, no charitable or marital deductions, prior gifts $2,000,000, no DSUE:
- Taxable estate = $10,000,000 - $500,000 = $9,500,000
- Tentative tax base = $9,500,000 + $2,000,000 = $11,500,000
- Total exemption = $13,990,000 + $0 = $13,990,000
- Amount subject to tax = max(0, $11,500,000 - $13,990,000) = $0
- Federal estate tax owed = $0 (below the exemption)
Example with tax owed
Gross estate $20,000,000, debts $500,000, no other deductions or prior gifts, no DSUE:
- Taxable estate = $20,000,000 - $500,000 = $19,500,000
- Tentative tax base = $19,500,000 (no prior gifts)
- Amount subject to tax = $19,500,000 - $13,990,000 = $5,510,000
- Federal estate tax = $5,510,000 x 40% = $2,204,000
- Effective rate on gross estate: $2,204,000 / $20,000,000 = 11.02%
Estate tax calculator: frequently asked questions
What is the 2025 federal estate tax exemption?
The basic exclusion amount for 2025 is $13,990,000 per person, as set by IRS Rev Proc 2024-40. This is the total amount an individual can pass at death (and through lifetime taxable gifts) before the 40% federal estate tax applies. The exemption is indexed for inflation each year.
What happens to the estate tax exemption after 2025?
The $13,990,000 exemption is a product of the Tax Cuts and Jobs Act of 2017, which roughly doubled the pre-existing exemption. The TCJA provisions are currently scheduled to sunset after December 31, 2025, which would reduce the exemption to approximately $7,000,000 (the pre-TCJA level, adjusted for inflation). Congress may act to extend the higher exemption. Source: IRS, Tax Policy Center.
What is estate tax portability?
Portability allows a surviving spouse to use the Deceased Spouse's Unused Exclusion (DSUE) in addition to their own basic exclusion. For example, if one spouse dies having used only $3,000,000 of their $13,990,000 exemption, the surviving spouse may elect to carry over the remaining $10,990,000 (the DSUE) and add it to their own exemption. The election must be made on a timely filed estate tax return (Form 706). Source: IRC Section 2010(c); IRS.
What is the unlimited marital deduction?
Transfers of assets to a US citizen spouse at death are fully deductible for estate tax purposes under the unlimited marital deduction (IRC Section 2056). This means estates passing entirely to a US citizen spouse pay no federal estate tax regardless of size, though the receiving spouse's estate may be subject to tax at their death.
Do states also have an estate tax?
Yes, many states have their own estate taxes with separate, typically lower exemptions. As of 2025, about a dozen states and the District of Columbia impose a state estate or inheritance tax. State exemptions range from roughly $1,000,000 to $13,610,000, and rates vary. Check your state's department of revenue for current figures.
What assets are included in the gross estate?
The gross estate includes the fair market value of essentially all property in which the decedent had an ownership or beneficial interest at death: real estate, bank and investment accounts, retirement accounts (IRAs, 401(k)s), life insurance proceeds (if the decedent owned the policy), business interests, vehicles, and personal property. Assets held in revocable trusts are also included. Source: IRC Chapter 11; IRS Form 706 instructions.
Official sources
- 2025 estate tax exemption: IRS Rev Proc 2024-40.
- Estate tax overview: IRS Estate Tax.
- Form 706 (US Estate Tax Return): IRS Form 706.
- Portability and unified credit: IRC Section 2010(c) (26 U.S.C. 2010).
- Unlimited marital deduction: IRC Section 2056 (26 U.S.C. 2056).
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information only, not tax or legal advice. Estate planning involves complex rules; consult a qualified estate attorney and CPA for your situation.