Does this calculator reflect actual IRS estate tax brackets and credits?

No. It compresses the system into a single flat rate applied to a taxable estate based on your inputs. Real estate tax computations involve progressive rate tables, credits, and various special rules that this tool does not attempt to replicate.

Does this include state estate or inheritance taxes?

No. Many states have their own estate or inheritance taxes with different thresholds, rates, and rules. This calculator focuses on a simplified federal-style estate tax only. You should check your state’s rules or speak with a local professional for a complete picture.

How should I treat assets left to a spouse or charity?

This simplified tool does not model the full marital deduction or all charitable deduction rules. However, you can approximate their impact by including amounts you expect to qualify for those deductions in the Deductions field, then see how that affects the taxable estate.

Can I rely on this result for legal or tax decisions?

No. The output is a rough, educational estimate designed to help you understand the scale of potential estate tax. Actual planning and filing require detailed analysis by a qualified estate planning attorney or tax professional using current law and your specific facts.

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Estate Tax Calculator

Estimate taxable estate and federal estate tax using a simple exemption and flat rate model.

Results

Taxable estate: $2,000,000
Estimated estate tax: $800,000

How to use this calculator

Estimate your gross estate value by adding up major assets such as real estate, investment accounts, retirement accounts, business interests, life insurance proceeds (depending on ownership/beneficiary structure), and other significant property.
Enter that total as the gross estate value in the calculator.
Enter the value of deductions you expect to claim, such as allowable debts, final expenses, and charitable bequests. If you are unsure, you can start with 0 and later test other scenarios.
Review or adjust the estate tax exemption to match the current tax year. The default is set to a recent, high exemption level; you can lower it to model future sunset scenarios or state-level thresholds.
Enter a flat estate tax rate in percent. The top federal rate has been around 40% in recent years, but you may want to model other percentages for sensitivity analysis.
Run the calculation to see your taxable estate and the estimated estate tax based on these simplified assumptions.

Inputs explained

Gross estate: An estimate of the total value of everything included in your estate before deductions and exemptions. This may include real estate, brokerage accounts, retirement accounts, closely held businesses, life insurance (depending on ownership and beneficiaries), and other assets. For planning, many people start with round numbers.
Deductions: An estimate of allowable deductions such as debts, certain final expenses, funeral and administrative costs, and charitable bequests. The marital deduction may also shelter amounts left to a surviving spouse in certain circumstances, but this simplified tool does not model all details.
Exemption: The estate tax exemption amount for the tax year you are modeling. Amounts up to this exemption are shielded from federal estate tax in this simplified model. Defaults to a recent federal exemption level, but you should update it for the year of death and consider potential sunset changes.
Tax rate: The estate tax rate applied to the taxable estate in this estimator. For federal estate tax, this is commonly modeled using the top marginal rate (around 40%), but actual calculations involve brackets, credits, and other adjustments.

How it works

We first calculate the taxable estate by subtracting deductions and the exemption from the gross estate value: taxable estate = max(gross estate − deductions − exemption, 0).

If the result is negative, we treat the taxable estate as 0, meaning there is no federal estate tax in this simplified model.

We then multiply the taxable estate by the estate tax rate you enter (expressed as a percentage) to estimate the estate tax owed.

This approach compresses the actual bracketed, credit-based estate tax system into a single flat rate approximation so that you can get an order-of-magnitude estimate without working through full IRS forms.

Because actual estate tax law is complex and state-level rules may also apply, treat the output as a starting point for conversations with professionals rather than a final answer.

Formula

This calculator uses a two-step simplification of the estate tax process:\n\n1. Taxable estate = max(Gross estate − Deductions − Exemption, 0).\n2. Estate tax = Taxable estate × (Tax rate ÷ 100).

When to use it

Getting a rough sense of whether an estate might be large enough to face federal estate tax exposure under current exemption levels.
Testing how different exemption scenarios (for example, current law vs. post-sunset lower exemptions) could change taxable estate and potential tax.
Exploring how increasing charitable giving, paying down debt, or using certain planning strategies could change the taxable estate in a simplified way.
Preparing for conversations with an estate planning attorney, financial planner, or tax professional by having ballpark numbers ready.

Tips & cautions

Update the exemption and rate inputs regularly, especially if you are planning several years ahead—estate tax law can change, and scheduled sunsets may reduce the exemption in future years.
Remember that many states have their own estate or inheritance taxes with different thresholds and rules; this calculator only models a simplified federal-style tax.
If you are planning to leave a significant amount to a surviving spouse, charitable organizations, or trusts, work with professionals to understand how those strategies interact with deductions and exemptions.
Use conservative assumptions if you want a more cautious view of potential tax—such as a lower exemption and including fewer deductions—then compare with more optimistic scenarios.
This is a simplified flat-rate model. Actual federal estate tax calculations use progressive brackets, unified credits, and various adjustments that can significantly change the final tax.
It does not handle portability (the ability of a surviving spouse to use a deceased spouse’s unused exemption), detailed marital deduction rules, or generation-skipping transfer tax.
It does not model state estate or inheritance taxes, which can apply at much lower thresholds and may require separate planning.
Values you enter are high-level estimates; a precise plan requires detailed asset inventories, titling reviews, and professional advice.

Worked examples

Example 1: Estate below the exemption

Gross estate = $8,000,000; deductions = $500,000; exemption = $13,000,000; tax rate = 40%.
Taxable estate = max(8,000,000 − 500,000 − 13,000,000, 0) = max(−5,500,000, 0) = 0.
Estate tax = 0 × 40% = $0 in this simplified model, suggesting no federal estate tax under the current exemption.

Example 2: Estate above the exemption

Gross estate = $20,000,000; deductions = $1,000,000; exemption = $13,000,000; tax rate = 40%.
Taxable estate = max(20,000,000 − 1,000,000 − 13,000,000, 0) = max(6,000,000, 0) = $6,000,000.
Estate tax = 6,000,000 × 40% = $2,400,000 (simplified). This gives a ballpark sense of the potential tax exposure.

Example 3: Modeling a lower future exemption

You start with the same gross estate of $20,000,000 and deductions of $1,000,000, but lower the exemption to $7,000,000 to model a potential sunset.
Taxable estate = max(20,000,000 − 1,000,000 − 7,000,000, 0) = max(12,000,000, 0) = $12,000,000.
Estate tax at 40% = 12,000,000 × 40% = $4,800,000—double the previous estimate, illustrating how sensitive planning can be to exemption changes.

Deep dive

Use this estate tax calculator to estimate taxable estate and potential federal estate tax by subtracting deductions and an exemption from your gross estate and applying a simplified flat rate.

Enter your estate value, estimated deductions, exemption amount, and a tax rate to see whether you might be above the estate tax threshold and how large the tax bill could be in broad strokes.

Ideal for high net worth individuals and families who want a quick, educational view of potential estate tax exposure before meeting with an estate planning attorney or tax advisor.

FAQs

Does this calculator reflect actual IRS estate tax brackets and credits?: No. It compresses the system into a single flat rate applied to a taxable estate based on your inputs. Real estate tax computations involve progressive rate tables, credits, and various special rules that this tool does not attempt to replicate.
Does this include state estate or inheritance taxes?: No. Many states have their own estate or inheritance taxes with different thresholds, rates, and rules. This calculator focuses on a simplified federal-style estate tax only. You should check your state’s rules or speak with a local professional for a complete picture.
How should I treat assets left to a spouse or charity?: This simplified tool does not model the full marital deduction or all charitable deduction rules. However, you can approximate their impact by including amounts you expect to qualify for those deductions in the Deductions field, then see how that affects the taxable estate.
Can I rely on this result for legal or tax decisions?: No. The output is a rough, educational estimate designed to help you understand the scale of potential estate tax. Actual planning and filing require detailed analysis by a qualified estate planning attorney or tax professional using current law and your specific facts.

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This estate tax calculator uses a simplified model to estimate taxable estate and potential federal estate tax based on user-entered values and a flat rate. It does not reflect all aspects of estate, gift, or generation-skipping transfer tax law, nor does it include state-level taxes or detailed marital and charitable planning. It is for general informational and educational purposes only and is not legal, tax, or financial advice. Always consult a qualified attorney or tax professional for personalized estate planning guidance.