Updated July 30, 2026. Quick answer (2026): The federal exemption is indexed annually, so it is a field on this page rather than a number baked in; the 40 percent top rate is statutory (IRC 2001(c)) and is built in. The result most people are not expecting is zero federal tax alongside a real state bill, because state exemptions are much lower.
Estate tax calculator
The federal exemption is indexed for inflation every year, so it is a field here rather than a number baked into the page. Take the current figure from the IRS, and take your state’s exemption and rate from estate tax by state.
An estate this size is usually a planning problem, not a tax problem.
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Two taxes, two thresholds, and only one of them is famous
The federal exemption is large enough that very few estates pay federal estate tax at all. State exemptions are frequently a fraction of it, and a dozen-odd states levy their own estate tax. The common outcome for a well-off household is zero federal tax and a real state bill — which is exactly the case a calculator that only models the federal side will tell you does not exist.
What is hardcoded here, and what is not
The 40 percent rate is set in statute. IRC 2001(c) provides for tax of “$345,800, plus 40 percent of the excess of such amount over $1,000,000”, and that top rate has not moved since 2013, so it is built in and cited.
The basic exclusion amount is not. It is defined in IRC 2010(c)(3) and indexed for inflation, which means it changes every January. Any estate calculator with the exemption baked into it is wrong within a year of being written. That is why it is a field on this page, and why the page tells you to go and get the current figure rather than trusting a number a website typed once.
Portability is not automatic
A surviving spouse can add the deceased spouse's unused exclusion to their own, which is what the ported-exemption field captures. It is not automatic: it requires a timely filed estate tax return for the first spouse, even when no tax is due. Families miss this and then discover years later that the exclusion they assumed they had was never elected.
Lifetime gifts come out of the same allowance
The estate and gift taxes share a single unified credit. Large lifetime gifts consume exemption that is then unavailable at death, which is what the gifts field subtracts. Annual-exclusion gifts do not count against it.
The state mechanic this does not model
Some states operate a cliff: cross the threshold and the whole estate is taxed, not just the excess. This calculator applies the rate to the excess only, which understates the result in a cliff state near the threshold. Check the mechanic for your state on estate tax by state before relying on the number, and see the probate cost calculator for what the process itself takes.
Related
Methodology
- The 40 percent top rate is quoted from 26 U.S.C. 2001(c), read on 2026-07-30.
- The basic exclusion amount is defined in 26 U.S.C. 2010(c)(3) and is inflation-indexed, so it is a USER INPUT here and never a hardcoded constant.
- State exemptions and rates are inputs, sourced from the state hub this page extends.
- Applies the rate to the excess over the threshold. Some states operate a cliff that taxes the whole estate once the threshold is crossed; this understates those.
- Ignores marital and charitable deductions, administration expenses, and prior gift tax paid.
Educational estimate, not legal or tax advice. Estate planning is state-specific and time-sensitive; confirm with an estate attorney.
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