US Federal Estate Tax Calculator 2026
Estimate the federal estate tax owed on a US estate using the 2026 basic exclusion amount and the IRC § 2001 top rate.
Federal estate tax owed
£1,200,000.00
- Taxable estate (gross − deductions)
- £18,000,000.00
- Plus prior taxable gifts
- £18,000,000.00
- 2026 basic exclusion amount
- £15,000,000.00
- Amount taxed at 40%
- £3,000,000.00
- Effective rate on gross estate
- 6.67%
Based on 2026 US federal estate tax rules. The $15,000,000 basic exclusion amount (One Big Beautiful Bill Act, P.L. 119-21) is applied to the combined total of the taxable estate and lifetime taxable gifts; everything above is taxed at a flat 40% under the IRC § 2001 schedule. The figure ignores state estate or inheritance taxes (which vary widely), portability of a deceased spouse's unused exemption (DSUE), generation-skipping transfer tax, and credits other than the unified credit. It assumes any gift tax already paid on prior gifts is zero, since gifts within the lifetime exclusion do not generate gift tax. Married couples can effectively double the exemption to $30,000,000 by claiming portability on Form 706.
How to use this calculator
Enter the gross value of the estate (real estate, investments, retirement accounts, business interests, life insurance proceeds, and personal property at fair market value). Subtract allowed deductions in the second field — marital deduction (unlimited for transfers to a US-citizen spouse), charitable deductions, debts of the decedent, funeral and administration expenses. In the third field, enter any lifetime taxable gifts (amounts above the annual gift exclusion that used up part of the unified exclusion). The result is the estimated federal estate tax — state estate or inheritance taxes are not included.
How the calculation works
The taxable estate equals the gross estate minus deductions. Adding back lifetime taxable gifts gives the total combined transfer. For 2026, the One Big Beautiful Bill Act (P.L. 119-21) sets the basic exclusion amount at $15,000,000 per individual. Anything above the exclusion is taxed at 40% under the IRC § 2001 rate schedule — the lower brackets are fully absorbed by the unified credit because the $15M exclusion covers everything up to the top bracket. The result is the tentative federal estate tax before state taxes, portability adjustments, or generation-skipping transfer tax.
Worked example
Gross estate $20,000,000. Deductions: $1,000,000 to charity, $500,000 in debts and administration expenses — total deductions $1,500,000. No prior taxable gifts. Taxable estate = $20,000,000 − $1,500,000 = $18,500,000. Combined with prior gifts ($0) = $18,500,000. Amount above the $15,000,000 exemption = $3,500,000. Federal estate tax = $3,500,000 × 40% = $1,400,000. Effective rate on the gross estate = 7.0%.
Frequently asked questions
What is the federal estate tax exemption for 2026?
The basic exclusion amount for decedents dying in 2026 is $15,000,000 per individual ($30,000,000 for a married couple using portability). This was set permanently by the One Big Beautiful Bill Act, signed in July 2025, replacing the previously scheduled drop to roughly $7,000,000 that would have happened when the 2017 Tax Cuts and Jobs Act provisions sunset. Future years are indexed for inflation in $10,000 increments.
What is the federal estate tax rate?
The IRC § 2001 rate schedule is graduated from 18% to 40%, but in practice only the 40% top rate matters. The schedule reaches 40% at $1,000,000 of taxable transfer — well below the $15,000,000 exemption — so the unified credit absorbs every lower bracket. Any taxable estate above the exemption is taxed at a flat 40%.
Does this include state estate or inheritance taxes?
No. This calculator covers only US federal estate tax. Twelve states plus the District of Columbia impose their own estate taxes with separate exemptions, often far lower than the federal threshold — Massachusetts and Oregon start at $2 million, Washington at $3 million, Minnesota at $3 million. Six states levy an inheritance tax on beneficiaries (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania), with rates depending on the heir's relationship to the decedent. Check your state's rules separately.
How does portability work for married couples?
When the first spouse dies, the surviving spouse can elect to use any unused portion of the deceased's basic exclusion amount — called the deceased spousal unused exclusion (DSUE). With portability, a married couple can shield up to $30,000,000 from federal estate tax in 2026. The election must be made by filing Form 706 within nine months of the first death (with a six-month extension available). Many estates that owe no tax still file Form 706 just to elect portability.
What counts as the gross estate?
The gross estate is essentially everything the decedent owned or had control over at death, valued at fair market value. That includes real estate, brokerage accounts, retirement accounts (IRAs, 401(k)s), bank balances, life insurance proceeds if the decedent owned the policy, business interests, partnership stakes, personal property, jointly held property (full or partial inclusion depending on contribution), and certain transfers within three years of death. Life insurance held in an irrevocable life insurance trust (ILIT) is typically excluded.
Are gifts during life taxed too?
Yes — through the unified gift-and-estate tax system. Annual gifts up to the gift tax annual exclusion ($19,000 per recipient in 2026) are exempt. Above that, gifts count as "adjusted taxable gifts" that use up your lifetime exclusion. By the time of death, the combined value of taxable lifetime gifts plus the taxable estate is compared to the exclusion. The estate tax calculation on Form 706 adds back adjusted taxable gifts so the unified credit is correctly applied across both transfers.