Estimate the federal estate tax owed on an estate based on its value, debts, exemption amount, and tax rate.
2025 federal estate tax exemption (example)
An estate tax calculator estimates the federal estate tax that might be owed on an estate after someone passes away, based on the estate's gross value, any debts and deductible expenses, the current federal exemption amount, and the applicable tax rate. Because the federal exemption amount is quite high, most estates owe no federal estate tax at all — this calculator is most relevant for larger estates that exceed the exemption threshold.
This calculator first reduces the gross estate by debts and deductible expenses to get the net estate, then subtracts the exemption amount to find the taxable estate — the portion potentially subject to estate tax.
Formula: Net Estate = Gross Estate − Debts & Expenses. Taxable Estate = max(Net Estate − Exemption Amount, 0). Estate Tax Owed = Taxable Estate × Tax Rate.
Example: For a $15,000,000 gross estate with $200,000 in debts and expenses, and a $13,990,000 exemption (2025 federal exemption example — check current limits), the net estate is $14,800,000, the taxable estate is $810,000, and at a 40% rate (example — top federal rate), the estimated estate tax would be roughly $324,000. (Note: all figures in this example are for illustration purposes only and do not represent current tax law.)
The federal estate tax applies only to the portion of an estate that exceeds the federal exemption amount, which has historically been adjusted for inflation and has also been subject to significant legislative changes — always verify the current exemption amount and rate schedule, as the figures used here are 2025 examples only. For married couples, "portability" rules generally allow a surviving spouse to use any unused portion of their deceased spouse's exemption, effectively doubling the combined exemption in many cases (example consideration — consult an estate planning attorney). In addition to federal estate tax, some states impose their own estate or inheritance taxes with separate, often much lower, exemption thresholds — this calculator estimates federal estate tax only.
No. Because the federal exemption amount is quite high (millions of dollars, example figures used in this calculator), the vast majority of estates in the US fall below the threshold and owe no federal estate tax at all.
The default is a 2025 example only. The federal estate tax exemption is adjusted periodically for inflation and has also been subject to significant legislative changes — check the current exemption amount and consult a tax professional.
Portability generally allows a surviving spouse to add any unused portion of their deceased spouse's federal estate tax exemption to their own, effectively increasing the combined exemption available to the couple's estate. This requires filing an estate tax return even if no tax is owed — consult an estate planning attorney.
Some states impose their own estate or inheritance taxes with exemption thresholds that can be much lower than the federal exemption — meaning a state tax could apply even to estates well below the federal threshold. Check your specific state's rules.
The default 40% reflects an example of the top federal estate tax rate. Actual federal estate tax uses a graduated rate schedule for amounts above the exemption — this calculator uses a single rate as a simplified example.
Yes, potentially. Strategies like trusts, lifetime gifting, charitable donations, and other estate planning tools can reduce the size of a taxable estate. This calculator provides a simple estimate only and doesn't model these strategies — consult an estate planning attorney for guidance specific to your situation.
Disclaimer: The information, exemption amounts, rates, and figures provided on this page are for educational and illustrative purposes only and are based on 2025 examples that may not reflect current federal or state estate tax law. Estate tax rules, exemptions, and rates change frequently due to inflation adjustments and legislation. Always consult a qualified estate planning attorney or tax professional before making any estate planning decisions.