Estate Tax Calculator
Federal Estate Tax Estimation
This calculator estimates federal estate tax due based on current exemption rates. Many states impose their own estate taxes, but they tend to be less than the federal estate tax. This calculator is mainly intended for use by U.S. residents.
Modify the values and click the calculate button to use.
Assets
Liabilities, Costs, and Deductibles
Total amount you’ve gifted tax free in your lifetime
Results
Based on your inputs, your estate would not be subject to federal estate tax.
Estate Tax Information
An estate tax is a tax imposed on the total value of a person’s estate at the time of their death. It is sometimes referred to as a “death tax.” Although states may impose their own estate taxes in the United States, this calculator only estimates federal estate taxes.
For the context of this calculator, the definition of “estate” should not be confused with a common alternative definition, which is an interest in real property. Depending on the taxable value of an estate, relatively low-valued estates will not require the filing of estate tax returns because they are below the tax exemptions threshold. For estates above the threshold, only the amounts that exceed the threshold for that year are taxable. The calculator can help determine this threshold. Due to marital deduction, the transfer of assets to a surviving spouse is not taxable, and only assets transferred to other heirs are taxable.
Upon death, a deceased person’s estate is usually passed onto their heirs. An heir is said to receive an inheritance if all or part of an estate from a recently deceased person is passed onto them. An inheritance tax is usually paid by a person inheriting an estate.
The major difference between estate tax and inheritance tax is who pays the tax. The estate tax is paid based on the deceased person’s estate before the money is distributed, but inheritance tax is paid by the person inheriting or receiving the money. While the federal government in the U.S. does not enforce an inheritance tax, some states in the U.S. enforce their own.
Ways to Reduce Estate Tax
- Use up the accumulated wealth! This is the quickest and easiest way to reduce the value of an estate.
- Donate to charity. Any assets gifted to a qualified 501(c)3 organization will avoid federal estate taxation.
- Get married. Dying without a legal spouse can subject all assets to estate tax, but if there is a spouse involved, no estate tax will be imposed.
- Move to a new state. Some states have their own estate or inheritance taxes.
- Use an alternate valuation date. Normally, the fair market value of property in an estate is estimated on the date of death.
U.S. Estate and Gift Tax Exemptions and Tax Rates
| Year | Lifetime Exemption | Tax Rates |
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