Estate Tax Calculator
$
$
Estate Tax$2,556,000.00
Taxable Estate$6,390,000.00
Effective Rate12.78%
The federal estate tax applies to the transfer of a large estate at death, but only the portion above a generous lifetime exemption is taxed. This calculator subtracts your deductions and the applicable exemption from the gross estate, then applies the top 40 percent federal rate to whatever taxable amount remains. It also reports the effective rate, which is the tax as a share of the whole estate.
Formula
Taxable estate = max(0, value − deductions − exemption); Tax = taxable × 40%
- value
- Gross fair-market value of the estate
- deductions
- Debts, charitable gifts, and other allowable reductions
- exemption
- $13,610,000 single or $27,220,000 married
- 40%
- Top federal estate tax rate applied to the taxable estate
How it works
- Enter the gross estate value and any deductions such as debts, charitable gifts, or the marital deduction that reduce the taxable base.
- Choose a filing status. A single decedent uses the $13.61 million exemption; a married estate that combines both spousal exemptions uses $27.22 million.
- The calculator computes the taxable estate as value minus deductions minus exemption (floored at zero), applies the 40 percent rate, and divides the resulting tax by the gross estate to show the effective rate.
Worked example
A single individual leaves a $20,000,000 estate with $500,000 of deductions.
- Subtract deductions and the single exemption: 20,000,000 − 500,000 − 13,610,000 = $5,890,000 taxable estate.
- Apply the 40% rate: 5,890,000 × 0.40 = $2,356,000 estate tax.
- Effective rate: 2,356,000 ÷ 20,000,000 = 11.78%.
Taxable estate $5,890,000, estate tax $2,356,000, and an effective rate of 11.78%.
Frequently asked questions
- How much can pass tax-free in 2024?
- A single decedent can shield up to $13.61 million, and a married couple combining both exemptions can shield up to $27.22 million. Only the value above the applicable exemption is subject to the federal estate tax.
- Why is the effective rate lower than 40 percent?
- The 40 percent rate applies only to the taxable estate above the exemption, not the entire estate. Because the exemption shelters a large slice tax-free, the tax measured against the full estate value is a much smaller effective percentage.
- Does this include state estate or inheritance taxes?
- No. This tool models only the federal estate tax. Several states levy their own estate or inheritance taxes with separate, often lower, exemption thresholds, so check your state rules for the complete picture.
- What counts as a deduction?
- Common deductions include outstanding debts and mortgages, funeral and administration expenses, charitable bequests, and amounts left to a surviving spouse under the unlimited marital deduction. Enter their total to reduce the taxable estate.