Estate Tax Calculator 2025 — Federal & State — Free Online Calculator

How Estate Tax Calculator Works

Taxable Estate = Gross Estate − Debts − Federal Exemption ($13.99M in 2025)

Federal estate tax applies a graduated rate (up to 40%) only on the portion of the estate exceeding the exemption. For 2025, the federal exemption is $13.99 million per individual ($27.98M for married couples using portability).

$13.99M

2025 Federal Exemption — The IRS allows each person to transfer up to $13.99 million tax-free. Estates below this amount owe zero federal estate tax. This limit is scheduled to sunset to approximately $7M (inflation-adjusted) after 2025 unless Congress acts.

Portability

Married Couple Exemption — Married couples can combine exemptions via a "portability election" on the first spouse's estate return, effectively doubling the exemption. This requires filing a federal estate tax return (Form 706) even if no tax is owed.

DSUE

Deceased Spouse Unused Exclusion — The portability amount — the unused portion of the first spouse's exemption that can be transferred to the surviving spouse. Must be elected on a timely filed Form 706.

How to Use

1. Enter the total fair market value of all assets: real estate, investments, retirement accounts, business interests, life insurance.
2. Subtract known debts and deductions (mortgages, funeral costs, admin fees).
3. Select filing status — married couples effectively have double the federal exemption.
4. Select your state — 12 states plus DC levy their own estate taxes with lower exemptions.
5. If your estate is below the federal exemption, you owe $0 in federal estate tax.

Quick Reference

Common Uses

• •Estimate whether your estate exceeds the federal exemption threshold and calculate the potential estate tax liability for your heirs.
• •Compare how different filing statuses and state estate tax thresholds affect the total tax burden on your estate.
• •Plan estate reduction strategies by understanding how the progressive estate tax rates apply to assets above the exemption limit.

Understanding the Result

Only about 0.1% of estates actually owe federal estate tax — estates must exceed $13.99 million (2025) before any federal tax applies. However, state estate taxes can apply at much lower thresholds: Oregon taxes estates above $1 million, Massachusetts above $2 million. IMPORTANT NOTE: This calculator uses the 2025 federal exemption of $13.99M. The Tax Cuts and Jobs Act provisions are scheduled to sunset after 2025, which could reduce the exemption to approximately $7M. Consult an estate planning attorney for current law status.

Worked Examples

Frequently Asked Questions

What is included in a taxable estate?

The gross estate includes virtually all assets: real property (including primary residence), bank and investment accounts, retirement accounts (401k, IRA), life insurance proceeds (if you own the policy), business interests, vehicles, jewelry, art, and other personal property at fair market value. Debts, mortgages, funeral expenses, and charitable contributions are deductible.

Does my spouse inherit tax-free?

Yes. The unlimited marital deduction allows spouses who are US citizens to inherit any amount completely free of federal estate tax. Estate tax is assessed at the second death (when the surviving spouse dies), on the combined remaining estate above the exemption. State taxes may differ.

What about the annual gift exclusion?

In 2025, you can give up to $19,000 per person per year (the annual gift exclusion) without touching your lifetime estate/gift tax exemption. This is an effective strategy to gradually reduce a large estate tax-free over time.

Will the exemption change?

Possibly. The elevated $13.99M exemption (from the 2017 Tax Cuts and Jobs Act) is currently scheduled to sunset at the end of 2025, reverting to approximately $7M (inflation-adjusted). Congress may extend or modify this. Consult an estate planning attorney for the most current information.

How accurate is this calculator for real-world use?

This calculator uses standard mathematical formulas and provides estimates based on the inputs you enter. For financial decisions, always verify results with a qualified professional and check against official statements or lender-provided figures which may include additional factors not modeled here.

Pro Tips

• →If you are married, make sure the executor of the first spouse's estate files IRS Form 706 to elect portability — even if no tax is owed. Without this election, the deceased spouse's unused exemption ($13.99M) is permanently lost. The portability election deadline is 9 months after death (with a 6-month automatic extension available).
• →The annual gift exclusion ($19,000 per recipient in 2025) lets you reduce your estate tax-free over time without touching your lifetime exemption. A married couple with three children can gift $114,000 per year ($19,000 × 2 parents × 3 children) without filing a gift tax return — that is over $1M removed from the estate over a decade.
• →Life insurance proceeds are included in your gross estate if you own the policy at death. To exclude them, place the policy in an Irrevocable Life Insurance Trust (ILIT) — the trust owns the policy, not you, so the death benefit passes to heirs outside your taxable estate.
• →The current $13.99M federal exemption is scheduled to sunset at the end of 2025, dropping to approximately $7M (inflation-adjusted). If you have an estate between $7M and $14M, consider making large gifts before the sunset to lock in the higher exemption — the IRS has confirmed it will not claw back gifts made under the higher exemption.

Limitations to Know

• •This calculator uses the 2025 federal exemption of $13.99M and may not reflect future legislative changes. The Tax Cuts and Jobs Act provisions are scheduled to sunset after 2025, which would approximately halve the federal exemption. Always verify the current exemption amount before making planning decisions.
• •State estate tax estimates use a simplified calculation (50% of the top rate applied to taxable estate). Actual state estate taxes use graduated brackets similar to federal income tax, and many states have special credits, deductions, or different rules for non-residents with property in the state.
• •This calculator does not account for lifetime taxable gifts that reduce the available estate tax exemption. If you have made large gifts exceeding the annual exclusion in prior years, your remaining exemption may be lower than the full statutory amount.
• •It does not model specialized estate planning tools: Qualified Terminable Interest Property (QTIP) trusts, Grantor Retained Annuity Trusts (GRATs), Charitable Remainder Trusts (CRTs), family limited partnerships, or valuation discounts for closely-held business interests — all of which can significantly reduce taxable estate value.

Sources

• IRS Form 706
• Investopedia