Find out whether your estate owes federal estate tax and how much your heirs will actually receive — using the 2025 $13.99 million exemption.
✅ Estate tax analysis completed successfully!
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Taxable Estate
$0
After all deductions
Remaining Exemption
$13,990,000
For the selected year
Federal Estate Tax Due
$0
At the flat 40% top rate
Heirs Receive
$0
After tax, debts & expenses
Effective Tax Rate
0.0%
Of the gross estate
Form 706 Filing Required?
No
Federal estate tax return
✅ No Federal Estate Tax Due
Based on your inputs, no federal estate tax is due. Enter your estate details and click Calculate to see a full analysis.
📝 Step-by-Step Calculation
Real-World Estate Tax Examples
🏠 Estate Above the 2025 Exemption
Robert dies in 2025 with a $16,000,000 gross estate and $1,000,000 of debts, mortgage, funeral, and administration expenses. He left no charitable bequests, took no marital deduction, and made no lifetime taxable gifts.
The tax is about 2.7% of the $15M taxable estate. Because the exemption is far above the $1M top bracket threshold, every dollar above the exemption is taxed at a flat 40%.
💰 A $20 Million Taxable Estate
An estate with a $20,000,000 taxable estate in 2025 and no lifetime gifts.
Form 706 required?Yes — the gross estate exceeds the $13.99M exemption
🏡 Estate Below the Exemption
Elena dies in 2025 with a $6,000,000 gross estate and $200,000 of debts and expenses. She made no lifetime taxable gifts.
Taxable estate:$6,000,000 − $200,000 = $5,800,000
Taxable amount:$5,800,000 − $13,990,000 = $0 (below the exemption)
Federal estate tax:$0
Form 706 required?No — the gross estate is below the filing threshold
Roughly 99.7% of U.S. estates owe no federal estate tax because they fall below the exemption.
How the Federal Estate Tax Is Calculated
The federal estate tax equals the tentative tax on the taxable estate (using the 2013+ rate schedule) minus the unified credit, which is the tentative tax on the exemption amount. Since the exemption is far above the $1M top bracket threshold, the math simplifies to a flat 40% tax on the amount above the remaining exemption.
Exemption by Year of Death
Exemption = $13,990,000 (2025)
$13,610,000 for 2024 deaths; $14,000,000 projected for 2026
If the result is $0 or negative, no federal estate tax is due
2013+ Rate Schedule (Taxable Estate Brackets)
Taxable Amount Bracket
Marginal Rate
$0 – $10,000
18%
$10,001 – $20,000
20%
$20,001 – $40,000
22%
$40,001 – $60,000
24%
$60,001 – $80,000
26%
$80,001 – $100,000
28%
$100,001 – $150,000
30%
$150,001 – $250,000
32%
$250,001 – $500,000
34%
$500,001 – $750,000
37%
$750,001 – $1,000,000
39%
Over $1,000,000
40%
In practice, the exemption is so large that estates above it are taxed at a flat 40% marginal rate.
Step-by-Step Estate Tax Analysis
1
Value the gross estate: Add the fair market value of all assets owned at death — real estate, investments, bank accounts, life insurance proceeds, business interests, and retirement accounts.
2
Subtract deductions: Remove debts and mortgages, funeral expenses, estate administration costs, charitable bequests, and the marital deduction to arrive at the taxable estate.
3
Determine the remaining exemption: Start with the exemption for the year of death and subtract lifetime taxable gifts already made.
4
Find the taxable amount: If the taxable estate exceeds the remaining exemption, the excess is taxable; otherwise no tax is due.
5
Apply the 40% rate: Multiply the taxable amount by 40% — the effective marginal rate for every dollar above the exemption.
6
Check filing requirements: File Form 706 if the gross estate plus adjusted taxable gifts exceeds the exemption — and consider filing even for smaller estates to elect portability.
Key Planning Concepts
👫 Portability
Surviving spouses can use the deceased spouse's unused exemption (DSUE), letting a couple shield up to about $27.98 million combined.
💍 Marital Deduction
Transfers to a U.S. citizen spouse are unlimited and tax-free at death.
🏥 Charitable Bequests
Gifts to qualified charities reduce the taxable estate dollar-for-dollar.
🎁 Annual Gifts & Trusts
Annual exclusion gifts ($19,000 per donee in 2025) and bypass/ILIT trusts move assets out of the taxable estate.
🏛️
2025 $13.99M Exemption
Always-current exemption amounts for 2024, 2025, and 2026 deaths, applied automatically when you select the year.
📄
Form 706 Filing Check
Instantly see whether your estate must file a federal estate tax return based on the gross estate and prior gifts.
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See What Heirs Receive
Beyond the tax bill, find out the net amount your heirs will actually receive after debts, expenses, and federal estate tax.
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Gifts & Portability
Lifetime taxable gifts reduce the remaining exemption exactly as the IRS unified credit rules require.
The federal estate tax is a tax on the right to transfer property at death. It is imposed on the estate itself — not on the heirs — and is paid out of estate assets before beneficiaries receive their shares. For deaths in 2025, every person has a $13.99 million exemption ($13.61 million for 2024 deaths), so only the value above that threshold is taxed.
Because the exemption is far above the top bracket threshold of $1 million, the estate tax effectively works as a flat 40% tax on the amount of the taxable estate that exceeds the remaining exemption. Married couples benefit from portability: if one spouse dies without using their full exemption, the surviving spouse can use the unused portion, allowing a couple to shield up to roughly $27.98 million from federal estate tax.
Only applies when the taxable estate exceeds the remaining exemption
Estate Tax vs Inheritance Tax vs Gift Tax
These three taxes are frequently confused, but they are completely different:
Estate tax — a federal tax on the deceased person's estate, computed on the total value of taxable assets and paid by the estate before distribution.
Inheritance tax — a state-level tax paid by the heirs on the assets they personally receive. Only about six states still impose one, and rates depend on the heir's relationship to the deceased.
Gift tax — a tax on lifetime transfers made by the donor. It shares a single unified exemption with the estate tax: every dollar of exemption you use on gifts reduces the amount you can pass tax-free at death.
This calculator estimates the federal estate tax only. Some states (such as MA, WA, OR, IL, MN, NY, VT, ME, MD, CT, RI, and DC) impose their own estate taxes with exemptions far below the federal level, and a few states still collect inheritance tax.
Ways to Reduce Estate Tax
For estates near or above the exemption, careful planning can dramatically reduce — or eliminate — the federal estate tax:
💍 Marital Deduction
Transfers to a U.S. citizen spouse are unlimited and completely tax-free at death, so no estate tax is due on assets left to a spouse.
🏥 Charitable Bequests
Gifts to qualified charities are fully deductible from the taxable estate — an unlimited way to reduce or eliminate the tax while supporting a cause.
🎁 Annual Gifts
Give up to $19,000 per donee per year (2025) without using any exemption. A couple gifting to several heirs can move hundreds of thousands of dollars out of the estate tax-free.
🏦 Trusts
Bypass trusts and irrevocable life insurance trusts (ILITs) remove assets from the taxable estate while still providing for beneficiaries.
👫 Portability Election
Filing Form 706 to elect portability preserves the deceased spouse's unused exemption for the survivor — often worth millions in tax savings.
Annual Gifting Power = $19,000 × Number of Donees × Number of Years
Maximize tax-free transfers by gifting consistently over time (2025 exclusion)
Frequently Asked Questions
What is the estate tax exemption for 2025?
For deaths in 2025, the federal estate tax exemption is $13.99 million per person (up from $13.61 million in 2024; $14.00 million is projected for 2026). Only the portion of a taxable estate above the exemption is taxed, and with portability a married couple can shield up to roughly $27.98 million combined.
Is estate tax paid by the estate or the heirs?
The estate itself pays the federal estate tax out of its assets before anything is distributed to beneficiaries. Heirs generally receive their inheritance free of federal estate tax. A few states impose a separate inheritance tax that heirs pay on what they receive — see the next question.
Do I have to file an estate tax return?
The executor must file Form 706 if the gross estate plus adjusted taxable gifts exceeds the exemption ($13.99 million for 2025 deaths). Filing may also be worthwhile for smaller estates to elect portability and preserve the surviving spouse's ability to use the unused exemption. Form 706 is due nine months after death, with extensions available.
What is portability?
Portability lets the surviving spouse use the deceased spouse's unused exemption (DSUE), so a couple can pass up to about $27.98 million free of federal estate tax. To lock it in, the executor must file Form 706 and elect portability on a timely basis — even when no tax is due.
How is estate tax different from inheritance tax?
The federal estate tax is levied on the deceased person's estate and paid by the estate before distribution. An inheritance tax is a state tax paid by the heirs on the assets they inherit, and only about six states still impose one. Some states also levy their own estate taxes with much lower exemptions.
What happens if my estate is below the exemption?
If the taxable estate is at or below the remaining exemption, no federal estate tax is due and no Form 706 is required (unless you want to elect portability). Your heirs receive the assets without federal estate tax — though you should still check whether your state imposes its own estate or inheritance tax.
⚠️ Important Disclaimer: This Estate Tax Calculator estimates federal estate tax only and is provided for educational and informational purposes. Many states — including Massachusetts, Washington, Oregon, Illinois, Minnesota, New York, Vermont, Maine, Maryland, Connecticut, Rhode Island, and the District of Columbia — impose their own state estate taxes with exemptions far below the federal level, and a few states still collect inheritance tax. Tax law is complex and frequently changes; always consult a qualified tax professional or estate planning attorney about your specific situation.