🏛️ Estate Tax Calculator
Estimate your federal estate tax liability based on the 2024 exemption amounts and 40% maximum rate.
Understanding Federal Estate Tax
The federal estate tax (sometimes called the "death tax") is a tax on the transfer of a deceased person's estate to their heirs. It applies only to the value of the estate that exceeds the applicable exclusion amount — a generous exemption that shields the vast majority of Americans from any estate tax liability.
2024–2025 Estate Tax Exemptions
| Filing Situation | Federal Exemption | Max Tax Rate |
|---|---|---|
| Individual | $13.61 million | 40% |
| Married Couple (portability) | $27.22 million | 40% |
These exemptions are scheduled to be cut roughly in half in 2026 when the Tax Cuts and Jobs Act provisions sunset, unless Congress acts. Estates near $6–7 million should begin planning now.
How the Estate Tax Is Calculated
Only the value exceeding the exemption is taxed, at a maximum marginal rate of 40%. For example, if an individual's estate is worth $15 million, the taxable amount is $15M − $13.61M = $1.39M, and the maximum tax (at 40%) would be approximately $556,000.
Estate Planning Strategies to Reduce Taxes
- Annual Gift Exclusion: Give up to $18,000 per recipient per year (2024) tax-free, reducing your taxable estate over time
- Irrevocable Trusts: Assets placed in irrevocable trusts are removed from your taxable estate
- Charitable Donations: Charitable bequests are fully deductible from the taxable estate
- Life Insurance Trusts (ILIT): Life insurance owned by an ILIT is excluded from the taxable estate