Estate Tax Calculator
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Estimated federal estate tax $1,800,000 on a taxable estate of $19,500,000, $4,500,000 over the $15,000,000 exclusion.
| Step | Amount |
|---|---|
| Gross estate | $20,000,000 |
| − Deductions | $500,000 |
| = Taxable estate | $19,500,000 |
| + Adjusted taxable gifts | $0.00 |
| = Tax base | $19,500,000 |
| Tentative tax on the tax base | $7,745,800 |
| − Gift tax paid | $0.00 |
| − Applicable credit ($15,000,000 exclusion) | $5,945,800 |
| = Estate tax | $1,800,000 |
Uses the $15,000,000 basic exclusion for deaths in 2026 (raised by the 2025 tax law) and the sec. 2001(c) rates, 40% at the top. State estate and inheritance taxes are not included. This is an estimate for planning, not tax advice. Check your figures with IRS instructions or a tax professional. Estate planning should be done with an estate attorney or tax professional.
How to use the estate tax calculator
- Enter the gross estate: the fair market value at death of real estate, investments, retirement accounts, business interests and life insurance the person owned.
- Subtract debts, mortgages, funeral costs and estate administration expenses.
- Add what passes to a surviving US-citizen spouse (marital deduction) and to charity, plus any state death taxes paid.
- Enter taxable gifts made during life and any gift tax paid on them, and the unused exclusion ported from a spouse who died earlier (DSUE), if the estate elected it.
Federal estate tax formula
Tax base = taxable estate + adjusted taxable gifts
Estate tax = tentative tax(tax base) − gift tax paid − applicable credit
Applicable credit = tentative tax(basic exclusion + DSUE) = $5,945,800 for 2026
The tentative tax uses the unified rate schedule in section 2001(c) of the Internal Revenue Code, which rises from 18% to 40%. Lifetime taxable gifts are added back because estate and gift taxes share one exclusion. The applicable credit is simply the tentative tax on the exclusion amount, so in practice everything above the exclusion is taxed at 40%. For deaths in 2026 the basic exclusion is $15,000,000, up from $13,990,000 in 2025; the 2025 tax law (Public Law 119-21) set this higher amount and indexes it for inflation from 2027.
Worked example
A single person dies in 2026 with a $20,000,000 gross estate and $500,000 of debts and expenses. The taxable estate is $19,500,000. The tentative tax is $7,745,800; subtracting the $5,945,800 applicable credit leaves $1,800,000 of estate tax, which is 40% of the $4,500,000 above the exclusion and 9% of the gross estate. Leaving $1,000,000 to charity would cut the tax to $1,400,000.
For a married couple, portability matters. If the first spouse leaves $10,000,000 to the survivor and $5,000,000 to the children, the estate owes $0.00 and has $10,000,000 of exclusion left. If the executor elects portability, the survivor can later shelter $25,000,000: a $26,000,000 estate at the second death would owe $400,000.
Estate tax by estate size, 2026
Single decedent, no deductions, gifts or ported exclusion.
| Taxable estate | Estate tax | Effective rate |
|---|---|---|
| $15,000,000 | $0.00 | 0% |
| $16,000,000 | $400,000 | 2.5% |
| $18,000,000 | $1,200,000 | 6.7% |
| $20,000,000 | $2,000,000 | 10% |
| $25,000,000 | $4,000,000 | 16% |
| $30,000,000 | $6,000,000 | 20% |
| $50,000,000 | $14,000,000 | 28% |
| $100,000,000 | $34,000,000 | 34% |
Unified rate schedule (sec. 2001(c))
| Tax base | Tax on lower amount | Rate on the excess |
|---|---|---|
| $0.00 – $10,000 | $0.00 | 18% |
| $10,000 – $20,000 | $1,800 | 20% |
| $20,000 – $40,000 | $3,800 | 22% |
| $40,000 – $60,000 | $8,200 | 24% |
| $60,000 – $80,000 | $13,000 | 26% |
| $80,000 – $100,000 | $18,200 | 28% |
| $100,000 – $150,000 | $23,800 | 30% |
| $150,000 – $250,000 | $38,800 | 32% |
| $250,000 – $500,000 | $70,800 | 34% |
| $500,000 – $750,000 | $155,800 | 37% |
| $750,000 – $1,000,000 | $248,300 | 39% |
| Over $1,000,000 | $345,800 | 40% |
Points to keep in mind
- Most estates owe nothing. Only the amount above the exclusion is taxed, and a married couple can shelter twice the exclusion with the marital deduction and portability.
- Portability is not automatic. The executor of the first spouse's estate must file Form 706 to elect it, even when no tax is due.
- Annual gifts don't count. Gifts up to $19,000 per recipient in 2026 fall under the annual exclusion and are not taxable gifts.
- States are separate. Several states levy their own estate or inheritance tax with much lower exemptions. They are not included here.
- Values are at the date of death. An executor can elect the alternate valuation date six months later if it lowers both the estate value and the tax.
This calculator gives an estimate for planning, not legal or tax advice. Talk to an estate attorney or tax professional before making decisions. For income tax on the living, see the income tax calculator; to grow an estate, the investment calculator projects returns.
Sources: IRS: What’s new, estate and gift tax (2026 basic exclusion); IRS Rev. Proc. 2025-32; IRS Instructions for Form 706 (rate schedule and basic credit); 26 U.S.C. 2001.
Frequently asked questions
What is the federal estate tax exemption for 2026?
The basic exclusion amount is $15,000,000 per person for deaths in 2026, up from $13,990,000 in 2025. The 2025 tax law set it at $15 million and indexes it for inflation from 2027. A married couple can shelter up to $30 million with portability.
How much estate tax is due on a $20 million estate?
With $500,000 of debts and expenses and no deductions or lifetime gifts, the taxable estate is $19.5 million. The tentative tax is $7,745,800 and the applicable credit is $5,945,800, leaving $1,800,000: 40% of the $4.5 million above the exclusion.
What is the estate tax rate?
The section 2001(c) schedule runs from 18% to 40%, but because the applicable credit wipes out the tax on the first $15 million, every taxable dollar above the exclusion is effectively taxed at 40%.
Do lifetime gifts reduce the estate tax exemption?
Taxable gifts, those above the $19,000 annual exclusion per recipient in 2026, are added back to the estate when the tax is figured. A $14 million estate with $2 million of earlier taxable gifts has a $16 million tax base and owes about $400,000.
How does portability work for married couples?
When the first spouse dies, the executor can file Form 706 to pass the unused exclusion (DSUE) to the survivor. If $10 million of the first spouse’s exclusion is unused, the survivor can shelter $25 million in 2026, so a $26 million estate would owe $400,000.