Estate Tax Calculator
Estimate your federal and state estate tax for 2026. $15M OBBBA exemption, 12-bracket graduated schedule, gift tax tracker, and state lookup with NY cliff warning.
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How to Use This Calculator
Federal Estate Tax tab
The default tab. Enter your gross estate value, filing status, state of residence, and deductions (marital, charitable, debts, funeral costs). The calculator shows the full 12-bracket graduated tax under IRC §2001(c), subtracts the unified credit ($5,945,800), and gives you the net federal tax. If your state has an estate tax, you'll see that too — with cliff warnings for New York and Illinois.
Gift Tax Tracker tab
Track your lifetime exemption usage. Enter prior taxable gifts, this year's recipients and amounts, and whether you're gift-splitting with a spouse. See your remaining exemption, whether you need to file Form 709, and your combined couple remaining if married.
State Estate & Inheritance Tax tab
Select any state to see its estate tax, inheritance tax, or both. Covers all 13 estate tax jurisdictions + DC and 5 inheritance tax states. Includes the New York 105% cliff warning, state-by-state rates, portability status, and inheritance tax by relationship class.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a spouse, estate attorney, or financial advisor.
The Formula
Federal estate tax is computed on the taxable estate using 12 graduated brackets (IRC §2001(c)), then offset by the unified credit:
Tentative Tax = Sum of graduated brackets (18% to 40%) on Taxable Estate
Gift Tax on Prior Gifts = Sum of graduated brackets on Prior Taxable Gifts
Net Federal Tax = max(0, Tentative Tax − Unified Credit − Gift Tax on Prior Gifts)
Unified Credit = $5,945,800 (= tentative tax on $15,000,000 BEA)
For estates under $15M, the unified credit fully offsets the tax — $0 federal estate tax. For estates above $15M, the effective marginal rate on the excess is 40%.
State estate tax is calculated separately using each state's own exemption and graduated rate table. Most states use the credit method (tax on full estate minus credit for exemption amount). New York has a unique 105% cliff that can eliminate the entire exemption.
Estate Tax in 2026: What Changed Under OBBBA
The One Big Beautiful Bill Act (OBBBA, P.L. 119-21) permanently set the federal estate tax exemption at $15,000,000 per person ($30M for married couples with portability). Key changes:
- No more sunset — the exemption was set to drop to ~$7M in 2026. OBBBA made $15M permanent with inflation indexing starting 2027.
- ~99.9% of estates owe zero federal estate tax under the new exemption
- Step-up in basis preserved — heirs receive inherited assets at fair market value at date of death (IRC §1014)
- Portability preserved — surviving spouse claims the unused exclusion (DSUE) via Form 706
- GST exemption = $15M but NOT portable between spouses
- State taxes are now the main risk — 13 states + DC have estate taxes with exemptions as low as $1M (Oregon) to $7.35M (New York)
Example
Robert & Catherine — 68 & 65, married, Westchester NY
Combined estate $12M: house ($2.5M), investments ($6M), retirement accounts ($2.5M), life insurance ($1M). Charitable bequest $500K, mortgage $350K, admin costs $50K.
Federal Estate Tax tab (Robert's estate at death)
But New York…
Robert's estate owes $0 federal tax but $1,082,800 to New York. The NY cliff eliminated the entire $7.35M exemption because the estate exceeded 105% of the threshold. If Robert had reduced his estate to $7.35M (via irrevocable trusts or lifetime gifts), NY tax = $0.
Gift Tax Tracker tab
Estate Tax vs Inheritance Tax
Estate tax is levied on the total value of the deceased's estate before distribution. Inheritance tax is paid by each beneficiary based on their share and relationship to the deceased. Spouses are exempt in all states. Children are exempt in all inheritance tax states except Nebraska (1% above $100K) and Pennsylvania (4.5%).