Estate Tax Calculator
Calculate estate tax with our free online calculator
Estate Tax Calculator
Assets
Liability, Costs, and Deductibles
Deductions
Lifetime Gifted Amount
Estate Tax Results
Your complete estate tax breakdown
Enter your estate information to see your results
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Estate Tax Calculation Formula
1. Total Assets
Assets = Real Estate + Investments + Savings + Vehicles + Retirement Plans + Life Insurance + Other Assets
2. Total Liabilities
Liabilities = Mortgages + Loans + Credit Cards + Funeral Expenses + Administration Expenses + Claims
3. Gross Estate
Gross Estate = Assets - Liabilities + Lifetime Gifts - Charitable Contributions
4. Taxable Estate
Taxable Estate = max(0, Gross Estate - Federal Exemption)
5. Estate Tax Owed
Estate Tax = Taxable Estate × 40%
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How to Use This Calculator
Step-by-step guide to get accurate results
1
What Is the Federal Estate Tax?
The estate tax is a federal tax on the transfer of assets at death. Unlike an inheritance tax, which is paid by beneficiaries in certain states, the federal estate tax is paid by the estate itself before distribution.
2
2025 Federal Estate Tax Exemption
In 2025, the estate tax exemption is $13.99 million per person. Amounts above this exemption are subject to tax, with a top rate of 40%. Estates are reported to the IRS using Form 706 (United States Estate and Generation-Skipping Transfer Tax Return).
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How the Estate Tax Is Calculated
Gross Estate
Total value of assets (real estate, securities, life insurance proceeds, business interests, retirement accounts).
Allowable Deductions
Funeral expenses, debts, charitable contributions, and marital deduction (transfers to a spouse are generally exempt).
Taxable Estate
Gross estate minus deductions.
Estate Tax Exemption
Subtract exemption ($13.99M in 2025) to determine taxable amount.
Apply IRS Estate Tax Brackets
Up to 40% rate is applied to calculate the final estate tax owed.
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How to Use This Estate Tax Calculator
Step 1
Enter your total estate value.
Step 2
Add deductions (debts, charitable gifts, funeral costs).
Step 3
Include marital transfers or spousal exemption if applicable.
Step 4
Enter lifetime gifts to see how they reduce exemption.
Step 5
View estimated estate tax owed, based on 2025 IRS thresholds.
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Estate Tax vs. Inheritance Tax vs. Capital Gains
Estate Tax (federal)
Paid by the estate before heirs receive assets.
Inheritance Tax (state-specific)
Paid by heirs; applies in only a few states (e.g., PA, NJ, NE).
Capital Gains Tax
Paid when inherited assets are later sold; based on stepped-up basis at death.
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Disclaimer & Next Steps
This federal estate tax calculator 2025 is for educational purposes only. Results are estimates and may vary by state rules, inflation adjustments, and IRS updates. Always consult a qualified tax professional or estate planning attorney for personalized guidance.
Frequently Asked Questions
What is the estate tax exemption in 2025?
The exemption is 27.98M for married couples with portability).
How do lifetime gifts affect estate tax?
Gifts above the annual exclusion ($18,000 in 2025) reduce your lifetime exemption and increase your taxable estate.
Do life insurance proceeds count toward the estate?
Yes, if the deceased owned the policy. Proceeds may increase the gross estate.
How much estate tax would I owe on a $15 million estate?
Roughly 13.99M exemption, assuming no deductions.
Do charitable contributions reduce estate tax?
Yes. Charitable deductions directly reduce the taxable estate, lowering overall liability.
Do I need to file IRS Form 706?
Estates above the exemption amount must file Form 706 within nine months of death (extensions available).