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Federal estate tax snapshot

Estate Tax Calculator

This calculator estimates federal and state estate tax on a simplified balance sheet. It subtracts debts and charitable bequests from gross assets, then applies Internal Revenue Code (IRC) § 2001(c) progressive brackets (18%–40%) only to the amount above the 2026 basic exclusion ($15 million per person, or $30 million when Married is selected to illustrate portability). State tax uses each listed state's top rate above its exemption and does not model marital deductions, cliffs, or inheritance tax. Results are illustrative—not tax or legal advice.

By Jeff Beem

Updated

01

Estate value

$
$
02

Marital status

Spousal portability doubles the exemption to $30,000,000 for this illustration.

03

Deductions

$

Reduces taxable estate dollar-for-dollar

04

Liquidity & state

$
Below federal exemption
Net to heirs
$4,750,000

After taxes, debts, and charitable gifts (illustrative)

Federal tax $0
State tax (simplified) $0

Flat rate over exemption; many states use brackets or inheritance taxes.

Effective rate0.0%
Taxable estate $0

Unlimited marital deduction for qualifying spousal transfers is not applied in this model, results assume a taxable estate after exemptions.

No federal estate tax in this scenario (below illustrated exemption).

Legacy distribution
Heirs 95.0%
Debts 5.0%
Illustrated exemption

Applicable exemption: $30,000,000 (with portability).

How to use this calculator

In 01 Estate value, enter total gross assets, then debts and liabilities. Charitable bequests in 03 Deductions reduce net estate dollar-for-dollar. Under 02 Marital status, Married doubles the illustrated federal exemption to $30,000,000; this model does not apply the unlimited marital deduction to assets left to a spouse. In 04 Liquidity & state, add cash and marketable securities for the liquidity check and pick a state for simplified state estate tax (flat rate above exemption). The results panel shows net to heirs, federal and state tax, effective rate, a legacy pie chart, and a liquidity gap if tax exceeds liquid assets. State and federal figures are illustrative—not a substitute for counsel.

Reading your estate tax results

Net estate is gross assets minus debts and charitable bequests. Federal tax runs on the amount above the illustrated exemption; state tax (if selected) uses a flat rate above the state threshold in section 04. Match the marital toggle to whether you are modeling a single decedent or a married couple with portability.

Example: $5M gross, married, no state tax

This calculator defaults to $5,000,000 gross assets, $250,000 debts, $0 charitable bequests, Married, and No State Estate Tax. Net estate = $4,750,000. That sits below the illustrated $30,000,000 federal exemption, so federal and state tax are $0 and Net to heirs = $4,750,000. The badge reads Below federal exemption; the pie chart is roughly 95% heirs and 5% debts.

State dropdown when federal tax is zero

Federal tax can stay at $0 while state tax does not. Keep the default net estate and choose Massachusetts in section 04: exemption $2,000,000, flat rate 16% on $2,750,000 above exemption → about $440,000 state tax, $4,310,000 net to heirs, ~8.8% effective rate on gross. Oregon's $1,000,000 exemption would push state tax higher on the same inputs.

Liquidity gap in section 04

Enter Liquid assets (cash / stocks) beside the state dropdown. If combined federal and state tax exceeds that balance, the red liquidity warning shows the shortfall. At defaults tax is zero, so $500,000 liquid assets produce no warning. Raise gross assets above the exemption with low liquid assets to see the flag.

Estate tax calculator: 2026 exemption and simplified state model

This calculator estimates federal estate tax on amounts above the 2026 basic exclusion using IRC § 2001(c) progressive brackets, plus a flat state layer from the residence dropdown. It does not apply the unlimited marital deduction or model trusts, generation-skipping transfer (GST) tax, or inheritance tax.

What this calculator does

Computes an illustrative estate tax snapshot from gross asset value, debts and liabilities, charitable bequests, marital status, liquid assets, and state of residence. Net estate = gross − debts − charity. Federal tax applies progressive brackets (18%–40% under IRC § 2001(c)) only to net estate above the basic exclusion ($15,000,000 single; $30,000,000 when Married is selected to illustrate portability). State tax, when selected, equals the state's top rate times net estate above that state's exemption, a flat simplification. Outputs include net to heirs, federal and state tax, taxable estate (federal base), effective rate, a legacy pie chart, and a liquidity gap warning. It does not apply the unlimited marital deduction, GST tax, lifetime gift credit usage, alternate valuation, or state inheritance taxes paid by beneficiaries. Not tax or legal advice.
  • Net estate:
    Net Estate=Gross Assets−Debts−Charitable Bequests\text{Net Estate} = \text{Gross Assets} - \text{Debts} - \text{Charitable Bequests}
  • Federal tax base:
    Federal Base=max⁡(Net Estate−Exemption,  0)\text{Federal Base} = \max(\text{Net Estate} - \text{Exemption},\; 0)

    Exemption = $15M (single) or $30M (married toggle).

  • State tax (simplified):
    State Tax=max⁡(Net Estate−State Exemption,  0)×Top Rate\text{State Tax} = \max(\text{Net Estate} - \text{State Exemption},\; 0) \times \text{Top Rate}

How the math works

Brackets under § 2001(c) apply to the federal base above exemption. Rates run from 18% on the first $10,000 of base to 40% above $1,000,000 of base. The widget sums bracket tax directly (equivalent to tentative tax minus unified credit for this simplified path).
  • $0–$10,000 of base:
    18% marginal rate
  • $10,001–$20,000:
    20%
  • $500,001–$1,000,000:
    37–39%
  • Over $1,000,000 of base:
    40% maximum marginal rate

Worked example (not the form default)

Single, $20,000,000 gross, $200,000 debts, no charity, no state tax.

  • Net estate: $19,800,000
  • Federal base: $19,800,000 − $15,000,000 = $4,800,000
  • Bracket tax through first $1M of base: $345,800
  • Plus 40% on remaining $3,800,000: $1,520,000
  • Federal estate tax: $1,865,800 (~9.3% effective on gross)

The same net estate with Married selected and $30M illustrated exemption would show $0 federal tax in this model.

Limits of the model

The state dropdown uses each jurisdiction's 2026 exemption and top rate as a flat tax on amounts above exemption. Real statutes use graduated brackets; New York and Illinois add cliff effects this flat model ignores. Thirteen states plus the District of Columbia appear in the list; exemptions range from Oregon's $1,000,000 to Connecticut's $15,000,000 (tracks federal). Annual exclusion gifts ($19,000 per recipient in 2026), direct tuition and medical payments under § 2503(e), irrevocable trusts, qualified personal residence trusts (QPRTs), ILITs, and Section 6166 installment elections are not modeled. Those structures need professional drafting; this widget only sketches tax on a static balance sheet.

Estate Tax Calculator FAQ

What is the federal estate tax exemption in 2026?

The 2026 federal basic exclusion amount is $15,000,000 per individual, per Internal Revenue Code (IRC) § 2010(c)(3) as adjusted by the One Big Beautiful Bill Act (OBBBA, Public Law 119-21). Inflation indexing resumes for 2027 and later years. This calculator applies that amount, or $30,000,000 when Married is selected to illustrate combined portability. Portability is not an automatic election.

Does this calculator apply the unlimited marital deduction?

No. Assets passing outright to a U.S. citizen spouse can qualify for an unlimited marital deduction under § 2056, but this model does not apply it. Choosing Married only doubles the illustrated federal exemption to $30,000,000 (portability-style). Actual portability requires a timely Form 706 and has its own rules.

What is the difference between estate tax and inheritance tax?

Estate tax is paid from the estate before heirs receive assets (federal plus some states). Inheritance tax is paid by the recipient (six states: Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). This tool models a simplified estate tax only; it does not compute inheritance tax owed by heirs.

How is state estate tax estimated in the dropdown?

For states listed in section 04, tax equals the top marginal rate times the net estate above that state's exemption. Real state laws use progressive brackets, cliffs (New York, Illinois), and different rules for spouses. Oregon starts at a $1,000,000 exemption; Massachusetts at $2,000,000. Verify with state revenue departments before planning.

What happens if liquid assets cannot cover the tax?

When estimated tax exceeds the liquid assets you enter in section 04, a red Liquidity gap warning appears. Heirs may need to sell property or borrow. Life insurance in an irrevocable life insurance trust (ILIT), Section 6166 installment payments for closely held businesses, and pre-death liquidity planning are common responses. This calculator does not model those structures.

Which inputs reduce the taxable estate in this tool?

Only Total debts & liabilities and Charitable bequests reduce net estate in the widget. Funeral costs, administrative expenses, and lifetime taxable gifts are not separate fields; fold reasonable estimates into debts or adjust gross assets if you want a rough allowance.

What does the legacy pie chart show?

It splits gross assets into wedges for Heirs (net after tax), IRS (federal plus simplified state tax), Charity (bequests entered in section 03), and Debts (liabilities in section 01). Percentages use gross asset value as the denominator, matching the chart beside the results panel.

Sources & citations

References used for the calculation method and definitions. Links open in a new tab when available.

[1]
IRS – Estate Tax

Official IRS page on federal estate tax rates, filing requirements, and the unified credit exemption amount.

[2]
IRS Rev. Proc. 2025-32

2026 inflation and exclusion amounts including the basic exclusion under § 2010(c)(3).

Financial Estimation Note

General Projections: Results are mathematical estimates based on the rates and formulas currently loaded for this tool, including year-specific tax data where noted. They are intended for high-level planning only.

No Advice Provided: This site does not provide financial, tax, or legal advice. Using this tool does not create a client-advisor relationship with CalcRegistry.

Confirm Numbers: Financial laws change frequently. Please verify all results with a qualified professional (CPA, Financial Planner, or Lawyer) before making significant financial decisions.

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