Estate tax estimator

Estimates only. Federal and state estate tax exemptions and rates change periodically, and this calculator uses simplified assumptions. Confirm current figures and consult an estate planning attorney or tax advisor for your specific situation. See our full disclaimer.

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Estimated total net worth ($) Include real estate, investments, business interests, retirement accounts, and life insurance death benefit.

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Have you done any advanced trust or gifting planning?

Your estate tax estimate

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An estate planning attorney evaluates strategies to reduce estate tax exposure - trusts, lifetime gifting, and other techniques - well before the exemption reduction takes effect. Free initial consultation in most areas.

How does the federal estate tax exemption actually work?

The federal estate tax applies only to the value of an estate exceeding a large exemption amount, adjusted periodically for inflation - meaning the vast majority of estates owe no federal estate tax at all. Only the portion of the estate above the exemption threshold is taxed, at rates that can reach up to 40% for the largest estates.

Married couples can generally combine their exemptions through "portability" (allowing a surviving spouse to use any unused exemption from a deceased spouse) if properly elected on a timely filed estate tax return, effectively doubling the exemption available to the couple's combined estate. This election requires action even when no tax is currently owed, making it an easy step to overlook without proper planning.

Use the living trust vs will comparison to evaluate broader estate planning tools alongside tax-specific strategies.

Why might the exemption change, and why does this matter for planning now?

The federal estate tax exemption amount is set by legislation and has changed multiple times in recent decades, including scheduled reductions under certain laws unless Congress acts to extend or modify them. Because exemption changes can significantly affect which estates owe tax, and because meaningful estate tax planning (trusts, gifting strategies) often takes time to properly implement, waiting until a change is imminent can limit your available options.

Given the uncertainty around exact future exemption levels, search for the most current information or consult an estate planning attorney to confirm today's applicable exemption amount and any legislative changes that may affect your specific planning timeline.

What's the difference between estate tax and inheritance tax?

Estate tax is assessed against the estate itself, based on its total value, before distribution to beneficiaries - both the federal government and some states impose this. Inheritance tax, imposed by a smaller number of states, is instead assessed against individual beneficiaries based on what they personally receive and their relationship to the deceased (spouses and children are often exempt or receive favorable rates, while more distant relatives or unrelated beneficiaries may face higher rates).

A few states impose both, and rates, exemptions, and rules vary significantly by state - if you live in (or own significant property in) a state with either tax, state-specific planning is important regardless of your federal exemption exposure, since state thresholds are often dramatically lower than the federal exemption. Our living trust vs. will guide and power of attorney builder cover related estate planning documents.

Frequently asked questions

Your taxable estate generally includes essentially everything you own or have significant control over at death: real estate, investment and bank accounts, retirement accounts, business interests, and importantly, the full death benefit of any life insurance policy you own (not just policies payable to your estate, but any policy where you retained "incidents of ownership"). This life insurance inclusion often surprises people, since a large policy intended to provide for a family can itself push an otherwise moderate estate over the exemption threshold, which is why properly structured irrevocable life insurance trusts are a common planning tool for larger estates.

Yes, potentially significantly. An annual gift tax exclusion allows giving a certain amount per recipient each year without using any of your lifetime exemption or filing a gift tax return - simple, regular gifting under this exclusion can meaningfully reduce a taxable estate over time for those who want to transfer wealth during their lifetime. Larger gifts beyond the annual exclusion use up a portion of your lifetime gift and estate tax exemption (which is unified with the estate tax exemption), meaning strategic large gifting can also be valuable, particularly if you expect the exemption amount to decrease in the future and want to use more of your exemption at today's higher level.

Generally yes for a spouse who is a US citizen, thanks to the unlimited marital deduction, which allows any amount to pass to a surviving US citizen spouse free of federal estate tax, regardless of the amount, deferring any potential tax until the second spouse's death. This deduction doesn't apply in the same unlimited way to a non-citizen spouse, where special planning tools (like a Qualified Domestic Trust) are often necessary to achieve similar tax deferral - an important and sometimes overlooked distinction for couples where one spouse isn't a US citizen.

Common strategies include irrevocable trusts (removing assets and their future appreciation from the taxable estate), strategic lifetime gifting (using the annual exclusion and lifetime exemption before potential future reduction), irrevocable life insurance trusts (keeping life insurance proceeds out of the taxable estate), charitable planning tools (charitable remainder trusts and similar vehicles that provide both tax benefits and charitable impact), and business succession planning tools for family-owned business interests. These strategies range from relatively simple to highly sophisticated, and the right combination depends heavily on your specific asset mix, family situation, and goals - this is an area where professional guidance provides significant value relative to the potential tax savings at stake.

Possibly yes, for 2 main reasons: first, if you live in (or own property in) a state with its own estate or inheritance tax, those thresholds are often dramatically lower than the federal exemption, meaning a moderate estate that owes no federal tax could still owe meaningful state tax. Second, if the federal exemption is reduced in the future as currently scheduled under some legislation, an estate that's comfortably below today's threshold could find itself above a reduced future threshold, particularly if net worth grows over time through asset appreciation. Periodically revisiting your estate tax exposure, rather than assuming a one-time assessment remains accurate indefinitely, is a reasonable practice for anyone with a meaningfully growing estate.