Federal Estate Tax Calculator 2026
This calculator estimates your 2026 federal estate tax liability. The 2026 basic exclusion amount (exemption) is 15,000,000 per person, per IRS Rev. Proc. 2025-32, 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 key change for 2026: the One Big Beautiful Bill Act made the 15,000,000 exclusion permanent (indexed for inflation after 2026), replacing the previously scheduled sunset to approximately 7,000,000. 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 2026 exemption of $15,000,000. Federal estate tax owed: $0.00.
2026 exclusion update: The One Big Beautiful Bill Act made the $15,000,000 basic exclusion permanent from January 1, 2026, with inflation indexing in later years. The previously scheduled reduction to approximately $7,000,000 after December 31, 2025 no longer applies. 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 2026 figures are from IRS Rev. Proc. 2025-32.
Taxable estate = gross estate - debts - charitable bequests - marital deduction
Tentative tax base = taxable estate + prior taxable gifts
Total exemption = $15,000,000 (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 = $15,000,000 + $0 = $15,000,000
- Amount subject to tax = max(0, $11,500,000 - $15,000,000) = $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 - $15,000,000 = $4,500,000
- Federal estate tax = $4,500,000 x 40% = $1,800,000
- Effective rate on gross estate: $1,800,000 / $20,000,000 = 9.00%
The 40% rate that almost no estate actually pays
The number that surprises people is not the 40% rate but how few estates ever reach it. With the 2026 basic exclusion set at $15,000,000 per person (and effectively $30,000,000 for a married couple that plans well), the federal estate tax touches a small fraction of one percent of deaths. The flat 40% applies only to the dollars above the exemption, so an estate of $20,000,000 does not owe 40% of $20,000,000; it owes 40% of the roughly $5,000,000 that exceeds the exclusion, an effective rate closer to 9%.
Two mechanics catch families out. First, the estate and gift taxes share a single lifetime exemption. Every taxable gift you made during life (the amounts above the annual exclusion, reported on Form 709) reduces the exemption left at death, which is why this calculator asks for prior taxable gifts. Second, portability is not automatic. To let a surviving spouse inherit the deceased spouse's unused exclusion (the DSUE), the estate must file Form 706 and make the election, even when no tax is due. Miss that filing and the unused exemption is simply lost.
One caution the federal figure hides: many states levy their own estate or inheritance tax with far lower thresholds, some near $1,000,000, so an estate that owes nothing to the IRS can still face a sizeable state bill. Treat this as a federal estimate and check your state department of revenue before assuming there is nothing to pay.
Estate tax calculator: frequently asked questions
What is the 2026 federal estate tax exemption?
The basic exclusion amount for 2026 is $15,000,000 per person, set by the One Big Beautiful Bill Act and confirmed in IRS Rev. Proc. 2025-32. This is the total amount an individual can pass at death (and through lifetime taxable gifts) before the 40% federal estate tax applies. The exclusion is indexed for inflation in years after 2026.
What happens to the estate tax exemption after 2026?
The One Big Beautiful Bill Act (OBBBA), enacted in 2025, set the basic exclusion amount at $15,000,000 from January 1, 2026 and made it permanent, with inflation indexing in years after 2026. The reduction to approximately $7,000,000 that had been scheduled under the Tax Cuts and Jobs Act sunset never took effect. Source: IRS Rev. Proc. 2025-32; IRS Estate Tax.
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 $15,000,000 exemption, the surviving spouse may elect to carry over the remaining $12,000,000 (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
- 2026 estate tax exemption: IRS Rev. Proc. 2025-32.
- 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, 11 July 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.