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Estate Tax Calculator

Estimate federal estate tax on the portion of an estate above the exemption.

Result

Estate tax
$556,000.00
Taxable amount
$1,390,000.00
Net to heirs
$14,444,000.00

Simplified: a flat 40% federal rate above the exemption.

Export:
Estate tax vs. amount to heirs
  • Estate tax$556,000.003.7%
  • Net to heirs$14,444,000.0096.3%

How federal estate tax works

Estate tax is a tax on the transfer of wealth at death, not on the heirs who receive it. Crucially, it applies only to the value above a generous lifetime exemption — roughly $13.61 million per person in 2024. Anything under that threshold passes entirely free of federal estate tax.

Because the exemption is so high, the vast majority of estates owe nothing at all. The tax is a concern mainly for high-net-worth families, business owners, and those holding large illiquid assets such as real estate or a closely held company.

Reading the result

The taxable amount is whatever portion of the estate exceeds the exemption. This calculator applies a flat 40% to that excess to estimate the tax, then subtracts it to show what is left for heirs.

The chart splits the estate into the share kept by heirs and the share taken as tax, which makes the impact of crossing the exemption line easy to see at a glance.

Common planning tools

Families with estates near or above the exemption often use strategies such as:

  • The unlimited marital deduction, which defers tax on assets left to a spouse.
  • Portability, which lets a surviving spouse use a deceased spouse’s unused exemption.
  • Annual gifting during life to move assets out of the taxable estate.
  • Irrevocable trusts and charitable bequests, which can remove value from the estate.

Important caveats

This is a deliberate simplification. The real federal schedule is graduated rather than a single flat rate, it is reduced by deductions and prior taxable gifts, and several states levy their own estate or inheritance taxes on top. Exemption amounts also change over time and are scheduled to fall after 2025. Use this as a rough estimate only and consult an estate-planning attorney or tax professional for decisions.

Formula

taxable = max(0, estate − exemption); tax = taxable × 40%; netToHeirs = estate − tax

Frequently asked questions

Does every estate owe this tax?
No. Only estates above the exemption owe federal estate tax, so most estates owe nothing. State estate or inheritance taxes may still apply.