Calculate federal estate tax liability on a gross estate (US, 2024).
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The 2024 federal exemption is $13,610,000 per person. After 2025, it may revert to ~$7 million.
Federal Estate Tax
$556,000taxable at 40%
US federal estate tax is a flat 40% on the amount by which your gross estate exceeds the exemption. This estimate assumes no state estate taxes, portability elections, or charitable deductions.
Taxable Estate$1,390,000
Exemption Used$13,610,000
Net to Heirs$14,444,000
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What is the Estate Tax Calculator?
An estate tax calculator is a tool that computes the federal estate tax owed on a deceased person's estate. In the US, estates exceeding the federal exemption threshold (currently $13.61 million in 2024) are taxed at a flat 40% rate on the excess. The calculator subtracts the exemption from your gross estate to find the taxable amount, then applies the 40% tax rate to reveal the liability heirs will face and the net amount passing to beneficiaries after tax.
How it works
The calculator starts with your gross estate value (all assets: property, investments, retirement accounts, life insurance, etc.) and the applicable federal exemption. It subtracts the exemption from the gross estate to calculate the taxable estate. If the result is positive, it multiplies by 40% to find the federal estate tax. The calculator then subtracts the tax from the gross estate to show the net inheritance to heirs. The formula is straightforward: taxable estate = max(0, gross estate − exemption); federal tax = taxable estate × 0.40.
Taxable Estate = max(0, Gross Estate − Federal Exemption); Federal Estate Tax = Taxable Estate × 0.40; Net to Heirs = Gross Estate − Federal Estate Tax
The exemption shields a portion of your estate from tax—only the amount exceeding it is taxed. The 40% flat rate is applied only to the taxable portion, not the entire estate. Subtracting the tax from the gross estate shows how much your heirs actually receive.
Taxable Estate: $11,390,000 | Federal Estate Tax: $4,556,000 | Net to Heirs: $20,444,000
A substantial estate. The tax liability exceeds $4.5M, reducing the inheritance by 18%. Proper planning (trusts, charitable gifts, portability) can significantly reduce this burden.
Taxable Estate: $0 | Federal Estate Tax: $0 | Net to Heirs: $10,000,000
An estate below the exemption threshold pays no federal estate tax. However, state-level estate taxes may still apply depending on your domicile.
How to use the Estate Tax Calculator
Gather a complete inventory of your gross estate: real property, investments, bank accounts, retirement accounts, life insurance death benefits, business interests, and personal property.
Sum all assets to arrive at the total gross estate value.
Enter the gross estate value in the calculator, selecting your preferred currency.
Verify the federal exemption amount (2024: $13.61M per person, $27.22M for married couples with portability election).
Click 'Calculate' to see the taxable estate, federal tax liability, and net inheritance to heirs.
Adjust the exemption to model different scenarios: portability elections for married couples, inflation adjustments, or pre-2026 planning if the exemption sunsets.
Benefits
Estimate your federal estate tax liability now, so you can plan ahead and explore tax-reduction strategies with your advisor.
Understand the 40% flat tax rate and see exactly how much your heirs will owe, motivating timely gifting, trust setup, or charitable planning.
Model the impact of the 2025 sunset: if the exemption drops to ~$7M per person post-2025, recalculate to see the increased tax burden and plan accordingly.
Compare married couples' planning: see how portability elections (doubling the exemption to $27.22M) protect joint estates from unnecessary tax.
Explore charitable strategies: calculate tax savings from charitable remainder trusts or donor-advised funds that reduce taxable estate.
Support family conversations: use the calculator's output to discuss inheritance planning with your family and financial advisors transparently.
Tips & common mistakes
Common mistakes
Forgetting to include all assets: many people overlook retirement accounts, life insurance death benefits, or business valuations when calculating gross estate, leading to underestimation of tax.
Confusing federal exemption with tax bracket: the exemption is a threshold amount that escapes tax entirely; only the excess is taxed at 40%.
Ignoring state estate taxes: nine states have their own estate or inheritance taxes with lower exemptions (often $1–5M), creating additional liability not captured in federal calculations.
Assuming the 2024 exemption is permanent: the current high exemption sunsets after 2025 unless Congress acts, potentially halving available shelter for large estates.
Tips
For married couples, use portability: if one spouse dies and the executor files a timely election, the unused exemption can transfer to the survivor, effectively doubling the shelter to $27.22M for 2024.
Gift strategically during life: annual gift exclusions ($18,000 per recipient in 2024) allow you to transfer wealth without using exemption, reducing your taxable estate.
Fund a charitable remainder trust: donate highly appreciated assets to a CRT, receive an income stream, and reduce your taxable estate while supporting a cause you care about.
Review your exemption assumption annually: as inflation adjusts the exemption upward and your estate grows, recalculate to track your exposure and adjust strategies.
Frequently asked questions
What is the federal estate tax exemption for 2024?
$13.61 million per person (or $27.22 million for a married couple if portability is elected). This exemption shelters that amount from the 40% federal estate tax. After 2025, the exemption may revert to approximately $7 million per person unless Congress extends current law.
Does every estate pay federal estate tax?
No. Only estates exceeding the exemption threshold owe federal tax. In 2024, estates under $13.61M (or $27.22M for couples with portability) owe zero federal estate tax. However, many states have their own lower exemptions, so state taxes may apply.
What assets are included in the gross estate?
Nearly all assets: real property, bank accounts, stocks and bonds, retirement accounts (401k, IRA), life insurance proceeds, business interests, trusts (if you retain control), and personal property. The IRS values assets at fair market value as of the date of death.
Can I reduce my federal estate tax?
Yes, through several strategies: annual gifting to use the exclusion ($18,000 per person in 2024); charitable giving via trusts or foundations; life insurance trusts (ILIT); marital trusts; and portability elections for married couples. Consult an estate attorney or tax advisor for your situation.
What is portability, and how does it work?
Portability allows a surviving spouse to inherit the unused exemption of a deceased spouse, doubling the available shelter from $13.61M to $27.22M. The executor must elect portability on a timely federal estate tax return (Form 706) even if no tax is owed.
Does this calculator account for state estate taxes?
No—it shows federal tax only. Nine states (California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New York, and Oregon, plus DC) have separate estate or inheritance taxes with lower exemptions (typically $1–5M). Check your state for additional liability.