Federal Estate Tax Estimator
Example: Gross estate value: 15000000 $ · Deductions (debts, charity, marital): 1000000 $ · Estate tax exemption: 13990000 $ · Top estate tax rate: 40 %
| Estimated federal estate tax | $4,000 |
| Amount over exemption | $10,000 |
| Net reaching heirs | $13,996,000 |
Worked example
Take a $15 million gross estate with $1 million in deductions, leaving a $14 million taxable estate. With a $13.99 million exemption, only about $10,000 sits above the line, and at a 40% top rate the estate tax is roughly $4,000. Push the taxable estate to $20 million and about $6.01 million is exposed, producing roughly $2.4 million of tax — showing how the bill accelerates once an estate climbs well past the exemption.
Frequently asked questions
Who actually owes federal estate tax?
Very few estates. Only those whose taxable value exceeds the federal exemption — currently in the multi-million-dollar range per person — owe anything, which is why the vast majority of families pay no federal estate tax at all. Enter the current exemption to see whether an estate is even in range.
How does the marital deduction work?
Assets left outright to a U.S.-citizen spouse generally pass free of estate tax through the unlimited marital deduction, and portability lets a surviving spouse use a deceased spouse's unused exemption. Include such transfers in the deductions line to reflect them.
What about state estate or inheritance taxes?
Some states levy their own estate or inheritance taxes with much lower exemptions than the federal one, so an estate that owes nothing federally may still owe at the state level. This tool estimates the federal tax only; check your state's rules separately.
Can estate tax be reduced?
Yes, with planning: lifetime gifting within annual and lifetime limits, charitable bequests, irrevocable trusts, and using both spouses' exemptions can lower a taxable estate. Because the rules are complex and change, large estates should work with an estate-planning professional.