AtlasCalcsUtility Calculation Suite
2026-08-07 9 min

Estate Tax Calculator

Estimate federal and state estate tax on a decedent's estate using deductions, the 2024 $13.61M federal exemption, lifetime gifts, state exemption and rate, plus the effective tax rate and net to beneficiaries.

Calculator

Gross Estate Value ($)
Debts & Funeral Expenses ($)
Administration Costs ($)
Charitable Deductions ($)
Marital Deduction ($)
State Estate Tax Exemption ($)
Federal Estate Tax Exemption ($)
State Estate Tax Rate (%)
Lifetime Gifts Total ($)
Estate Tax Summary
Gross Estate Value:$15,000,000.00
Total Deductions:$4,550,000.00
Adjusted Gross Estate:$14,650,000.00
Federal Exemption Available:$13,110,000.00
Taxable Estate (Federal):$0.00
Taxable Estate (State):$13,650,000.00
Federal Estate Tax:$0.00
State Estate Tax:$1,638,000.00
Total Estate Tax:$1,638,000.00
Effective Tax Rate:10.92%
Remaining for Beneficiaries:$8,312,000.00
No Federal Tax DueState Tax Due
CategoryAmount% of Gross
Gross Estate$15,000,000.00100.00%
Debts & Funeral Expenses-$300,000.002.00%
Administration Costs-$50,000.000.33%
Charitable Deductions-$200,000.001.33%
Marital Deduction-$4,000,000.0026.67%
Total Deductions$4,550,000.0030.33%
Federal Estate Tax$0.000.00%
State Estate Tax$1,638,000.0010.92%
Total Estate Tax$1,638,000.0010.92%
Net to Beneficiaries$8,312,000.0055.41%

Results

Caution

Total Estate Tax

$1,638,000.00

Combined federal and state estate tax on the estate

Federal Estate Tax

$0.00

40% top rate on taxable estate above the federal exemption

State Estate Tax

$1,638,000.00

State rate applied to taxable estate above the state exemption

Taxable Estate (Federal)

$0.00

Gross estate minus deductions and available exemption

Effective Tax Rate

10.92%

Total tax divided by gross estate value

Net to Beneficiaries

$8,312,000.00

What is left for heirs after taxes and deductions

Estimates use the 2024 $13.61M exemption and a flat 40% top federal rate. State rates and exemptions are your input; the graduated schedule, GST tax, and deferral elections are not modeled.

Visualizations

Estate Value Breakdown

15,000,000Gross
4,550,000Deductions
0Federal Tax
1,638,000State Tax
8,312,000Remaining

Estate Tax Bracket Progress

Taxable0%

Formula

The gross estate is reduced by debts, funeral costs, administration, charitable bequests, and the marital deduction to reach the taxable amount, and further reduced by the available exemption (federal exemption less lifetime gifts). The remainder is taxed at the 40% top federal rate, and a separately computed state tax is added.

Federal = max(0, GE − Deductions − (FedExemption − Gifts)) × 40%

Alternative Form

State = max(0, (GE − Debts − Admin) − StateExemption) × StateRate

Variables

SymbolNameUnitDescription
GEGross estateUSDFair market value of all assets owned at death
AGEAdjusted gross estateUSDGross estate minus debts and administration (state base)
DTotal deductionsUSDDebts, admin, charitable, and marital deduction total
EAvailable exemptionUSDFederal exemption reduced by lifetime gifts
TETaxable estateUSDEstate exposed to the 40% top federal rate
sState exemption & ratemixedThe state threshold and its top rate

Explanation

The estate tax is a transfer tax on wealth left at death. Because the exemption is huge, only very large estates owe anything. The flat 40% on the excess, plus a state layer on the adjusted gross estate, is the essence of the math.

Derivation

Taxable estate(TE) = max(0, GE − D − E). Federal Tax = TE × 0.40. State Tax = max(0, AGE − StateExemption) × rate. Effective rate = Total / GE.

Step-by-Step Calculation

Follow each step to understand how the result is calculated from your inputs.

Step 1

Value the gross estate: everything the decedent owned at fair market value.

GE = Σ asset values
Gross Estate:$15,000,000.00
Intermediate: Homes, investments, retirement, business interests, and personal property
Result: Gross estate = $15,000,000.00
Step 2

Total the deductions: debts, funeral costs, administration, charity, and marital deduction.

D = Debts + Admin + Charitable + Marital
Debts:$300,000.00
Admin:$50,000.00
Charity:$200,000.00
Marital:$4,000,000.00
Intermediate: $300,000.00 + $50,000.00 + $200,000.00 + $4,000,000.00
Result: Total deductions = $4,550,000.00
Step 3

Compute the adjusted gross estate used by the state layer.

AGE = GE − Debts − Admin
Gross:$15,000,000.00
Debts:$300,000.00
Admin:$50,000.00
Intermediate: $15,000,000.00 − $300,000.00 − $50,000.00
Result: Adjusted gross estate = $14,650,000.00
Step 4

Derive the available federal exemption after lifetime gifts.

E = FedExemption − LifetimeGifts
Federal Exemption:$13,610,000.00
Lifetime Gifts:$500,000.00
Intermediate: $13,610,000.00 − $500,000.00
Result: Available exemption = $13,110,000.00
Step 5

Compute the federal taxable estate and apply the 40% top rate.

Federal = max(0, GE − D − E) × 40%
Taxable Estate:$0.00
Top Rate:40%
Intermediate: max(0, $15,000,000.00 − $4,550,000.00 − $13,110,000.00)
Result: Federal estate tax = $0.00
Step 6

Compute the state estate tax on the adjusted gross estate above the state exemption.

State = max(0, AGE − StateEx) × Rate
AGE:$14,650,000.00
State Exemption:$1,000,000.00
Rate:12%
Intermediate: max(0, $14,650,000.00 − $1,000,000.00) × 12%
Result: State estate tax = $1,638,000.00
Step 7

Summarize the total tax, effective rate, and net to beneficiaries.

Net = GE − D − TotalTax − Gifts
Total Tax:$1,638,000.00
Effective Rate:10.92%
Intermediate: $15,000,000.00 − $4,550,000.00 − $1,638,000.00
Result: Net to beneficiaries = $8,312,000.00
Final Answer
$1,638,000.00

Worked Examples

See how the calculator works with different scenarios.

Scenario

A $5,000,000 estate with $100,000 of debts, $30,000 of administration, and $50,000 of charitable bequests in a state with a $1M exemption at 12%.

Inputs

Gross:$5,000,000
Debts:$100,000
Admin:$30,000
Charity:$50,000
Fed Exemption:$13.61M

Calculation

Deductions = 100k + 30k + 50k = 180k AGE = 5M − 130k = 4.87M Federal: 5M − 180k − 13.61M → 0 → $0 State: (4.87M − 1M) × 12% = $464,400 Total = $464,400

Result

$0 federal; $464,400 state tax; 9.3% effective; ~$4.36M to beneficiaries

Interpretation

Fully below the $13.61M federal threshold the IRS takes nothing — but a state with a $1M exemption still collects roughly a half-million. State exposure is the real lever for this wealth tier.

Understanding Your Result

Your Result: Total Estate Tax: $1,638,000.00

Typical range: With the 2024 exemption, estates under ~$13.6M usually owe nothing federally. Above it, the marginal federal rate is essentially always 40%, and state tax adds 0-20% depending on the state table.

What This Means

The primary result is your total estate tax (federal plus state), the two parts, the effective rate, and the net your heirs actually receive.

Why It Matters

The federal exemption is $13.61M per person for 2024 and portable to $27.22M for couples, so most families never pay a dollar of federal estate tax. For those above the line, the flat 40% and every state layer multiply on tens of millions of dollars.

Professional Interpretation

Real filings replace the flat 40% estimator with the graduated 18%-40% schedule (identical result above $1M taxable), support Section 6161 business deferral, and choose the alternate valuation date when values fall. Treat this as a high-level model, not a replacement for ESTR/TRM work.

Exemption is the whole ballgame

Because the 2024 exemption sits at $13.61M and most estates are under it, the most useful planning outcome is simply staying under the number while still gifting wealth.

Marital + charity work hardest

The marital and charitable deductions are unlimited; push the value that must avoid tax into a spouse, trust, or qualified charity with technique and tempo.

Effective rate stays small

Even big taxable estates pay their 40% only on the excess, so true, reported effective rates on gross are usually in the mid-teens or less.

Recommendations

  • •Use the unlimited marital deduction to time assets across two deaths
  • •Fund an ILIT or bypass trust so life insurance never inflates the gross
  • •Portability: file Form 706 even with no dollars owed to bank the unused exemption
  • •Model each state separately before relocating north of the estate threshold
  • •Annual gifting of up to 10 friendly limits telescopes decades of exemption
  • •Start planning when net worth approaches half the exemption, not later

Educational Content

Introduction

Estate tax is a transfer tax paid on wealth at death. This calculator models the federal and state layers with the 2024 exemption of $13.61M, the marital/charitable deductions, lifetime gifts, and the 40% top rate—the shape that defines most American estate rows.

Concept Explanation

The gross estate minus legitimate deductions (debts, admin, charity, marital) minus the available exemption is the taxable estate; it is charged 40%. A parallel state computation on the adjusted gross estate above the state exemption adds a second bill.

Applications

▸Estimating whether your estate would file Form 7 06
▸Comparing married filing strategies with marital deduction
▸Planning state taxes before a domicile move
▸Weighing lifetime gifts against the schedule
▸Deciding whether an ILIT or bypass trust is needed
▸Budgeting executor and administration cash flow
▸Explaining why huge estates pay tiny effective rates

Benefits

  • •Live federal and state split, instantly
  • •Lifetime gifts and marital deduction built-in
  • •Full deduction & exemption stack transparent
  • •Effective rate and net-to-bene direct
  • •Visual flow of estate through the tax

Limitations

  • •Flat 40% federal, not the full graduated 18.5-40 schedule
  • •State rate tables are per-state; our flat % is your input
  • •No GSTT and no business deferral mechanics
  • •Does not consider foreign assets or GDT treats

Best Practices

  • •Value assets annually and keep appraisals on file
  • •Structure the marital deduction before the first death
  • •Use a trust instead of an estate that will grow
  • •Review the plan at every marriage, divorce, and move
  • •File portability within the 6-month extension window

Common Misconceptions

Myth: Estate tax falls on everyone after a certain income.
Truth: It is a wealth transfer tax — under $13.61M federally (with the 2024 number) no federal estate tax is owed at all.
Myth: Trusts avoid all estate tax.
Truth: Trusts only avoid the tax if they actually remove ownership; revocable trusts still count as owned and stay taxable.
Myth: The estate tax is double-counted
Truth: The estate tax is separate from income tax; assets that appreciated in life may be hit by both taxes on the same unrealized gain at death.

Practical Tips

  • •Run you under the bday exemptions both ways to see how slow the 2024 line is.
  • •If you are above the federal exemption, leave $100k for the funeral and pay nothing on it — the marital deduction backs to zero.
  • •A state with a $1M exemption is a wealth bond; moving within network can cost more than keeping a trust.
  • •Push gifts below the annual exclusion every single year, not in one lump.
  • •Keep life insurance in an ILIT: it wipes the death benefit out of the gross from day one.
  • •The effective rate is what the IRS actually keeps — quote that number, not 40%.

Common Mistakes

Believing the 40% applies to the whole $13.61M
Only the portion above the exemption is taxed; most estates pay exactly $0.
Ignoring the state layer
The state exemption is usually far lower and can out-force the federal bill — always model it.
Forgetting lifetime gifts eat the exemption
Every taxable gift during life decreases the remaining exemption, so model the combined plan.
Leaving the estate in the exact tens of millions
Structure the gross (ILIT, trusts, gifting) so the value stays neatly within the exemption.
Waiting until death to plan
Retitling, trusts, and gifting must happen years before the taxable event — early planning is the only medicine.

Assumptions

This calculator makes the following assumptions to provide estimates:

2024 exemption: Uses the 2024 per-person $13.61M unlimited exemption; later years inflate it.
Flat 40% federal: All taxable estate over the exemption is taxed at 40%; departures from the graduated basis rarely change the top-line on large estates.
State rate is your own: The state rate and exemption you type are applied; real states use their own schedules.
Gifts lower exemption: Lifetime taxable gifts reduce the available federal exemption dollar for dollar.
No income side: Inherited income-taxable accounts are modeled as gross only — beneficiary income tax is separate.

Limitations

Be aware of these limitations when using this calculator:

Simplified schedule: Uses the 40% top rate rather than the graduated bracket legs below $1M taxable.
GST ignored: Generation-skipping transfer tax is not computed — it sits on top for grandchild gifts.
6101 elections out: Section 6161 deferral and special-use valuation are not modeled.
No credit & portability math: The full credit stack and the actual after-death portability percentages are per-plan steps.
State table single flat: Real states are progressive even above their exemption.

Frequently Asked Questions

Answers to common questions about this calculator.

What is an estate tax calculator?
An estate tax calculator estimates the federal and state estate tax liability on a decedent's estate based on the gross estate value, deductions, exemptions, and applicable tax rates.
How is federal estate tax calculated?
Federal estate tax is calculated by subtracting allowable deductions from the gross estate to get the taxable estate, then applying the rate schedule. The first $13.61 million (2024) is exempt.
What is the federal estate tax exemption for 2024?
The federal estate tax exemption is $13.61 million per individual. Amounts above this threshold are taxed at rates up to a top rate of 40%. The exemption is portable between spouses.
What is the current estate tax rate?
The federal rate is a graduated schedule starting at 18% on the first $10,000 and reaching 40% on amounts over $1 million. Most taxable estates end up on the top 40% cliff.
What states have an estate tax?
Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia impose their own estate tax.
How does portability work?
Portability lets a surviving spouse use the unused federal exemption of the deceased spouse, effectively doubling a couple's exemption to over $27 million.
What is the adjusted gross estate?
The adjusted gross estate is gross assets minus funeral expenses, administration costs, debts, and losses during administration. The state tax layer usually starts from this number.
What deductions are allowed from the gross estate?
Funeral expenses, administration costs, debts, charitable bequests, the marital deduction, and state estate taxes are all deductible in computing the federal taxable estate.
What is the marital deduction?
The marital deduction lets an unlimited amount pass to a surviving spouse free of federal estate tax, which is the single largest planning lever for couples.
What is the charitable deduction?
Unlimited bequests to qualified charities are deducted from the gross estate, removing both the assets and any income tax on the gain from the estate.
How do lifetime gifts affect estate tax?
Taxable gifts made during life reduce the remaining estate exemption dollar-for-dollar because the exemption is unified between estate and gift tax.
What is the estate tax rate schedule?
It is progressive: 18% on the first $10,000 rising to 40% above $1 million. Because the exemption primes the schedule, almost everything taxable is at 40%.
What is an estate tax return (Form 706)?
Form 706 is filed for estates whose gross assets exceed the filing threshold. It is due within 9 months of death, with an automatic 6-month extension.
Who is responsible for paying estate tax?
The executor pays the tax from estate assets before distribution, and files Form 706 claiming the deductions and elections.
What is the effective estate tax rate?
Total tax divided by gross estate value. It is far lower than the 40% marginal rate because so much value is shielded by the exemption and deductions.
How do state estate taxes differ from federal?
State exemptions are much lower (commonly $1M-$7M) and their schedules flatter; some states compute on the adjusted gross estate rather than the taxable estate.
What is the generation-skipping transfer tax?
GSTT applies an extra tax to transfers that skip a generation, using its own exemption matched to the estate exemption.
How are retirement accounts taxed for estate?
IRAs and 401(k)s are included at their fair market value, and the beneficiary may also owe income tax on later withdrawals — a potential double tax.
What is a bypass trust?
A credit-shelter (bypass) trust uses one spouse's exemption on the first death so those assets pass to children, avoiding the survivor's estate.
What is a QTIP trust?
A qualified terminable interest property trust qualifies for the marital deduction while letting the first spouse decide who receives the remainder.
How is life insurance treated?
Life insurance is includible if the decedent held any incidents of ownership (e.g., a place in a policy, whether the power to change the beneficiary).
What is the alternate valuation date?
If the value has fallen, the estate can choose to value assets six months after death to reduce the tax.
What is a GRAT?
A Grantor Retained Annuity Trust moves asset appreciation to beneficiaries at a low gift-tax cost, a favored strategy with volatile assets.
How are jointly owned assets taxed?
Since 1982, for spouses a fractional share (the proportion of contribution) is includible; for non-spouses the decedents share is included.
What is an ILIT?
An Irrevocable Life Insurance Trust buys and is the owner of an insurance policy, so death proceeds stay out of the insured's estate.
How does the tax affect family businesses?
Section 2032A allows special-use valuation of farmland/ family business recently held, and Section 6161 lets the estate defer payment.
What is the Section 6161 election?
It allows estates with closely held business interests to pay the estate tax in installments over up to 14 years instead of all at once.
What is a qualified disclaimer?
Within 9 months a beneficiary can disclaim (refuse) an inheritance in writing; the asset then passes as if they had died — a planning lever, done early.
How are non-citizen spouses treated?
The marital deduction is unavailable unless assets pass through a Qualified Domestic Trust (QDOT) that will collect US tax on later distributions.
What is the GSTT exemption?
The generation-skipping exemption ($13.61M in 2024) can be allocated to trusts or written directly to grandchildren.
What strategies are available?
Annual gifting, irrevocable trusts, GRATs, ILITs, QPRTs, charitable trusts, and family limited partnerships are the usual toolkit.
When should I start estate planning?
Start when net worth approaches the exemption, and re-review at each major asset, marriage, or move to a new state.
Can estate taxes be avoided entirely?
With exemptions, the marital deduction, charitable bequests, and trusts, many estates erase state and federal estate tax completely.
How do I know if my estate must file Form 706?
Roughly, file if gross estate plus adjusted taxable gifts exceeds the filing threshold — $13.61M in 2024, $27.22M for a couple claiming portability.

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Glossary

Technical terms used in mortgage calculations explained in plain language.

Gross Estate
Everything the decedent owned at fair market value at death.
Adjusted Gross Estate
Gross estate minus debts and funeral/administration costs.
Federal Exemption
The 2024 $13.61M amount excluded before the estate tax computes.
Portability
The survivor spouse inherits the unused exemption.
Marital Deduction
Unlimited transfer to a spouse free of federal estate tax.
Charitable Deduction
Bequests to qualified charities reduce the taxable estate.
Taxable Estate
Gross estate minus deductions and exemption — what is charged.
Effective Tax Rate
Total estate tax divided by gross estate value.
Form 706
The federal estate tax return.
ILIT
Irrevocable Life Insurance Trust — policy owned by trust.
QTIP
Trust that qualifies for the marital deduction with control.
GRAT
Grantor Annuity Trust for moving appreciation.

Authoritative References

Trusted sources and standards referenced by this calculator.

Applicable Standards

IRC Chapter 11IRS Form 706Uniform Probate Code

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Page Information

Last Updated:

2026-08-07

Version:

2.0.0

License:

Free to use for educational and professional purposes.