Inheritance & Estate Tax Calculator
Calculate federal and state estate taxes on your estate. See how deductions reduce your taxable estate and what your heirs will receive.
2026 federal exemption: $13,990,000
Assets left to a US-citizen spouse are 100% exempt
2026 Federal Estate Tax Overview
The estate tax is a transfer tax on the net value of a deceased person's estate. Most Americans never pay it because of the large exemption.
| Year | Exemption per Person | Top Rate | |------|---------------------|----------| | 2026 | $13,990,000 | 40% |
Married couples can combine exemptions via portability (DSUE election on Form 706), effectively shielding $27,980,000.
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Key Deductions That Reduce Taxable Estate
| Deduction | Notes | |-----------|-------| | Debts & mortgages | Reduce gross estate directly | | Funeral expenses | Deductible | | Marital deduction | 100% of assets to US-citizen spouse | | Charitable deduction | 100% of gifts to qualifying charities | | Administration expenses | Legal, executor, and accounting fees |
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State Estate Taxes
About 12 states impose estate taxes with their own (often lower) exemptions:
| State | Exemption | Top Rate | |-------|-----------|---------| | Massachusetts | $2,000,000 | 16% | | Oregon | $1,000,000 | 16% | | Washington | $2,193,000 | 20% | | New York | $6,940,000 | 16% | | Illinois | $4,000,000 | 16% |
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Annual Gifting Strategy
The annual gift tax exclusion in 2026 is $18,000 per recipient. You can gift this amount to any number of people each year without using your lifetime exemption. A couple with 3 children and 6 grandchildren can gift $18,000 × 18 people = $324,000 per year completely tax-free.
Frequently Asked Questions
Q: What is the federal estate tax exemption for 2026?
A: The federal estate tax exemption is $13,990,000 per individual in 2026, or $27,980,000 for married couples using portability. Estates below this amount owe no federal estate tax. The top rate on amounts above the exemption is 40%.
Q: Which states have their own estate tax?
A: About 12 states and Washington D.C. impose state estate taxes, often with much lower exemptions than the federal level. Oregon and Massachusetts tax estates over $1M. Washington State has a $2.19M exemption and rates up to 20%.
Q: Is the estate tax the same as inheritance tax?
A: No. The estate tax is paid by the estate before distribution. The inheritance tax is paid by the recipient. Only six states have inheritance taxes (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Maryland has both.
Q: What are the best ways to reduce estate taxes?
A: Annual gifting ($18,000 per recipient in 2026, tax-free), irrevocable life insurance trusts (ILITs), GRATs (grantor retained annuity trusts), charitable remainder trusts, 529 plans (5-year superfunding), and qualified opportunity zone investments are common strategies. Always consult an estate planning attorney.
Official Sources & Authority References
Important Disclaimer
This calculator provides estimates for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws change annually — verify figures with IRS.gov or consult a qualified tax professional before making financial decisions.
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