Estate Tax Calculator (2026)

Estate tax hits net wealth above $15,000,000 in 2026

Federal estate tax applies to decedent’s worldwide assets minus deductions, credits, and the basic exclusion amount—$15,000,000 for 2026 deaths under current inflation-indexed law. Most estates owe zero federal estate tax; high net-worth families model inclusion of retirement accounts, real estate, business interests, and improperly owned life insurance that inflates taxable estate.

Enter gross estate, debts, administrative costs, marital and charitable bequests, adjusted taxable gifts after 1976, and portability amounts. Output estimates net taxable estate and federal estate tax before state estate taxes (many states have lower thresholds).

2026 unified transfer system

• Basic exclusion: $15,000,000
• Annual gift exclusion: $19,000 per donee (reduces need to use basic exclusion)
• Top marginal rate: 40% on taxable estate above available exclusion

Legislative sunset or future law changes can alter exclusion—treat $15,000,000 as current-law planning anchor for 2026 education.

How to use the calculator

Step 1 — Build gross estate

Cash, securities, real estate, business FMV, retirement accounts, life insurance includible amounts.

Step 2 — Subtract deductions

Debts, funeral, marital deduction to U.S. citizen spouse, charitable bequests.

Step 3 — Apply exclusion and prior gifts

Reduce by remaining basic exclusion after lifetime taxable gifts; estimate tax on remainder.

Worked example

Gross estate $18,000,000, deductions $1,000,000, no prior taxable gifts → taxable estate $17,000,000. Exclusion $15,000,000 → $2,000,000 subject to estate tax at progressive/40% structure ≈ $800,000 rough federal estate tax before precise bracket calculation—run tool for cents.

Life insurance inclusion

Policies you own on your life pay to estate → includible. ILIT ownership may exclude if structured correctly—life insurance estate tax calculator.

Gifting during life

Annual $19,000 gifts and larger taxable gifts reduce estate—gift tax calculator tracks exclusion use.

State estate tax

Oregon, Massachusetts, New York, and others tax at lower thresholds than federal—this tool is federal-focused; add state separately.

Common mistakes

• Excluding retirement accounts from estate projection
• Ignoring includible life insurance you own
• Forgetting adjusted taxable gifts reduce exclusion
• Assuming portability without prior Form 706 election

Related tools

Gifts: gift tax calculator. Insurance: life insurance estate tax calculator. Capital assets: capital gains tax calculator.

Portability and second death planning

First spouse to die with $8M estate uses $8M exclusion; portability election passes unused $7M to survivor if $15M exclusion in 2026—survivor may have $22M combined exclusion when properly elected on timely Form 706. State-only estates below federal threshold may still owe state estate tax in Massachusetts, Oregon, etc.

GRATs, CLATs, and other advanced transfers reduce taxable estate beyond annual $19,000 gifts—legal structures not calculated here but interact with basic exclusion remaining.

Marital deduction and QTIP

Unlimited marital deduction defers estate tax to second death when assets pass to U.S. citizen spouse outright or in QTIP trust—first death taxable estate may be zero despite $30M gross if properly structured. Non-citizen spouse needs QDOT for marital deferral.

Charitable bequests reduce taxable estate dollar-for-dollar—charitable remainder trusts remove assets from estate while retaining income stream. Farm and business relief (Section 2032A, 6166 installment) reduce liquidity pressure not modeled in basic calculator.

Reading your results for estate tax

The interactive panel above shows a transparent calculation trace in cents—use it to sanity-check inputs before you rely on any number for decisions. Tax software at filing time may differ when every credit, limitation, and state conformity rule is applied in full. Treat output here as structured planning math aligned to 2026 federal reference data where noted, not as e-file output or professional advice.

When your situation includes items this specialized tool simplifies—multiple entities, prior-year carryforwards, treaty elections, or state nonconformity—layer those facts manually or with a preparer. The goal is to narrow uncertainty enough to ask better questions, not to eliminate the need for review when dollars are material.

Recordkeeping that survives scrutiny

Keep source documents (forms, statements, logs, confirmations) that support every input you typed. IRS and state audits often start from third-party reporting; your job is to reconcile 1099s, K-1s, and broker exports to the story you file. Digital backups with dates beat reconstructed spreadsheets created after an notice arrives.

For estate tax, retain worksheets year to year when carryforwards exist—loss carryovers, credit carryforwards, passive loss suspensions, and basis schedules die silently if you change preparers and lose history.

Related tools on this site

Gifts: gift tax calculator. Insurance: life insurance estate tax calculator.

2026 federal brackets and payroll context

Ordinary income tax brackets and standard deductions for 2026 follow IRS Rev. Proc. 2025-32 ($16,100 single / $32,200 joint standard deduction; seven marginal rates from 10% to 37%). Social Security tax applies at 6.2% on wages up to the $184,500 wage base; Medicare continues at 1.45% with Additional Medicare Tax above threshold wages. These layers stack independently from specialized rules modeled in this estate tax tool—run the federal income tax calculator when you need the full return picture.

Quarterly estimated tax may be required when withholding does not cover liability—see the quarterly estimated tax calculator. Year-end refund or balance due comparisons belong in the tax refund estimator once withholding and payments are known.

Before filing season

Reconcile this estate tax calculator estimate against draft Form 1040 lines and attached schedules your software produces. Look for mismatches in basis, carryforwards, and state add-backs—the first pass with a specialized calculator often misses secondary limits that full return software catches. Update inputs when you receive final 1099s, K-1s, and corrected broker statements; January revisions are normal.

If results imply large balance due, adjust withholding or estimated payments before December 31 when possible—penalties accrue on underpayment even when you file timely in April. If results imply large refund, you may be over-withholding or overpaying estimates; tune W-4 or voucher amounts for better cash flow without chasing refunds as a savings strategy.

State returns often piggyback federal logic but diverge on conformity items. Re-run state tools when federal inputs change materially so you do not pay state estimates based on federal-only planning from this estate tax calculator page.

Sources and methodology

Basic exclusion $15,000,000 and gift exclusion $19,000 from IRS Rev. Proc. 2025-32 and 2026 inflation guidance. Form 706 simplified. Educational—not legal or estate planning advice.