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Estate Tax Estimator

Rough estimate of US federal estate tax exposure above the lifetime exemption.

Result

Estimated Estate Tax
$0.00
Taxable Estate
$0.00

Simplified flat 40% top-rate estimate above the exemption; actual tax uses a graduated schedule.

Covered by Exemption: $8.0MTaxable Estate: $0Total$8.0M
  • Covered by Exemption - $8.0M
  • Taxable Estate - $0

About the Estate Tax

Federal estate tax only applies to estates above a very high lifetime exemption - for 2025, just under $14 million per person - so the vast majority of estates owe nothing at all. Our Estate Tax Estimator checks whether an estate exceeds that threshold and roughly what might be owed if it does.

How It Works

The calculator subtracts the current lifetime exemption from the gross estate value to find the taxable portion (if any), then applies a simplified flat 40% rate - the top federal estate tax bracket - to that excess, since nearly all taxable estates that exceed the exemption fall into or near the top bracket.

Taxable estate = max(estate value − lifetime exemption, 0) Estimated tax = taxable estate × 40%

Formula & Methodology

The federal estate tax only ever applies to the portion of an estate that exceeds the lifetime exemption - everything below that threshold passes entirely tax-free at the federal level, which is why the vast majority of estates never owe anything. The actual federal rate schedule is graduated from 18% up to 40%, but because the exemption is so large, almost every estate that does owe any tax lands with most or all of its taxable amount in the top 40% bracket, which is why this simplified estimate applies that top rate directly rather than modeling the full graduated schedule.

Step-by-Step: Calculating It By Hand

  1. 1Total the gross value of the estate (all assets at fair market value).
  2. 2Subtract the current lifetime exemption amount.
  3. 3If the result is zero or negative, no federal estate tax is owed.
  4. 4If positive, multiply that excess by the simplified 40% top rate to estimate tax owed.

Examples

Below the exemption

An $8 million estate is entirely below the roughly $14 million 2025 exemption, meaning zero federal estate tax is owed.

Above the exemption

A $20 million estate exceeds the exemption by about $6 million, producing an estimated federal estate tax of roughly $2.4 million at the simplified 40% rate.

Advantages

  • Uses the current, very high lifetime exemption most estates never come close to
  • Quickly shows whether an estate has any federal tax exposure at all
  • Gives a rough estimate for estates that do exceed the exemption
  • Useful starting point before consulting an estate planning attorney

Common Mistakes

  • Assuming estate tax applies broadly - in reality, it affects a very small percentage of estates given the high exemption
  • Forgetting many states have their own separate estate or inheritance tax with much lower exemption thresholds
  • Not accounting for the actual graduated federal rate schedule, which this simplified estimate approximates with a flat top rate
  • Confusing the lifetime exemption (available across gifts and the estate combined) with an annual allowance

Edge Cases to Watch For

  • Married couples can generally combine exemptions through 'portability,' effectively doubling the exemption available to the surviving spouse's estate.
  • Many states impose their own separate estate or inheritance tax with exemption thresholds often far below the federal amount, meaning a state tax bill can apply even when no federal tax is owed.
  • The lifetime exemption is shared between gifts made during life and the estate at death - large lifetime gifts reduce the exemption remaining for the estate.
  • The federal exemption amount is set by legislation and has changed significantly over past decades, so any specific estimate should be checked against the current year's actual figure.

Common Use Cases

  • Checking whether an estate is likely to have any federal tax exposure
  • Getting a rough estimate of potential estate tax for planning purposes
  • Starting a conversation with an estate planning attorney or financial advisor
  • Understanding how the lifetime exemption works in practice
Written & fact-checked by the Calculateus TeamLast updated August 5, 2026How we verify our formulas

Frequently asked questions

Does the federal exemption mean most estates owe nothing?

Yes - the federal lifetime exemption is very high (well into eight figures per person), so the vast majority of estates owe no federal estate tax. Some states have their own separate, often much lower, estate or inheritance tax thresholds to check as well.

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Conclusion

For the overwhelming majority of estates, this exemption means zero federal estate tax is owed - but state-level estate or inheritance taxes can apply at much lower thresholds, so check your specific state's rules too. Our Gift Tax Calculator covers the related lifetime exemption question for gifts made during life.

References