Free Estate Tax Calculator (2026)
Federal and state estate death tax estimates. Calculate instantly — no signup required. Updated for 2026.
What Is an Estate Tax Calculator?
An estate tax calculator is a specialized wealth-planning tool designed to estimate potential federal and state tax liabilities on the transfer of an estate upon the owner’s death. Often referred to in popular culture as the "death tax," the estate tax is levied on the net value of an individual’s estate — including real estate, stock portfolios, bank accounts, business interests, and life insurance policies — before the assets are distributed to beneficiaries.
Fortunately, the federal government offers a highly generous **Lifetime Estate Tax Exemption**. Only estates whose net value exceeds this multi-million-dollar exemption threshold are subject to the federal estate tax, which carries a top rate of 40%. However, several states impose their own estate and inheritance taxes with significantly lower exemptions. Our estate tax calculator helps you estimate your potential tax exposure and plan your estate to protect your legacy.
How to Use This Estate Tax Calculator
To estimate your potential estate tax exposure, enter the following parameters:
- Gross Estate Value: The combined market value of all assets owned at the time of death.
- Outstanding Debts & Expenses: Enter mortgage balances, personal debts, funeral costs, and legal fees. These are deducted to find the net taxable estate.
- State of Residence: Select your state to incorporate local estate or inheritance tax guidelines.
The calculator instantly processes the parameters, showing your taxable estate, federal tax, state tax, and net assets passed to heirs.
The Estate Tax Formulas
First, the Net Estate Value (E_net) is calculated:
E_net = Gross Estate Value − Debts − Funeral & Administrative Expenses
Next, the federal tax is calculated by applying the federal lifetime exemption (F_exemp):
Federal Taxable Estate = E_net − F_exemp
If Federal Taxable Estate > 0: Federal Estate Tax = Federal Taxable Estate × 40%
Step-by-Step Practical Example
Let’s calculate the estate tax for a high-net-worth individual with an estate valued at $16,000,000:
- Gross Estate Value: $16,000,000
- Outstanding Debts/Funeral: $500,000
- Net Estate (E_net): $15,500,000
- 2026 Federal Estate Tax Exemption: $13,990,000 (assumed for illustration)
Step 1: Calculate the Federal Taxable Estate
Federal Taxable Estate = $15,500,000 − $13,990,000 = $1,510,000
Step 2: Apply the 40% federal tax rate
Federal Estate Tax = $1,510,000 × 40% = $604,000 tax liability
Step 3: Analyze the results
Your heirs will pay $604,000 in federal estate tax, and the remaining $14,896,000 will pass to your beneficiaries, showing how proper planning can preserve family wealth.
Key Takeaways
- The federal estate tax is progressive up to 40%, but only applies to estates exceeding the generous lifetime exemption.
- Outstanding mortgages, debts, and administrative expenses are deducted from the estate value before taxes are assessed.
- Several states impose local estate or inheritance taxes with much lower exemption thresholds.
Frequently Asked Questions
What is the current federal estate tax exemption limit?
For 2026, the federal estate tax exemption is approximately $13.99 million per individual (and nearly $28 million for married couples, due to portability). Only estates whose net value exceeds this multi-million-dollar exemption are subject to the federal estate tax (at rates up to 40%).
What is the difference between an estate tax and an inheritance tax?
An estate tax is levied on the total value of the deceased person’s estate before any assets are distributed to beneficiaries. An inheritance tax is a state-level tax levied on the individual beneficiary who receives the inherited assets, with tax rates and exemptions varying based on the beneficiary’s relationship to the deceased.
Does a surviving spouse have to pay estate tax?
No. Under IRS tax rules, the "unlimited marital deduction" allows you to transfer an unlimited amount of assets to a surviving spouse who is a U.S. citizen during your life or upon your death with zero federal estate or gift tax, regardless of the value of your estate.
What is "portability" in estate planning?
Portability is an estate tax provision that allows a surviving spouse to inherit the unused portion of their deceased spouse’s federal estate tax exemption. For example, if a spouse passes away and only uses $3 million of their exemption, the surviving spouse can claim the remaining unused exemption, adding it to their own exemption limit.
How can an irrevocable trust help avoid estate taxes?
An Irrevocable Life Insurance Trust (ILIT) or other irrevocable trusts help avoid estate taxes by permanently removing assets from your personal ownership. Because you no longer own or control the assets in an irrevocable trust, the IRS does not include those assets in your gross estate value upon death, legally shielding them from estate taxes.