What is the estate tax calculator — federal & state 2026?
In short
For 2026, the federal estate tax only applies to estates above $15,000,000 (single) or $30,000,000 (married with portability) under OBBBA, indexed for inflation after 2026. The rate is a flat 40% on the excess: a $20,000,000 single estate owes $2,000,000, leaving $18,000,000 for heirs. Estates passing entirely to a surviving spouse owe $0.
Calculates federal and state estate tax using the 2026 federal exemption ($15M per person under OBBBA). Enter the gross estate value, any debts or charitable deductions, and optional state tax parameters to see the full tax breakdown and net estate for heirs.
How to use this calculator
- 1Enter total gross estate value — all assets at fair market value including real estate, investments, retirement accounts, and life insurance.
- 2Enter debts and expenses (mortgages, loans, estate administration costs) — these reduce the taxable estate.
- 3Enter any charitable bequests, which also reduce the taxable estate dollar-for-dollar.
- 4Select filing status. If married, check 'Passing entire estate to spouse' for the unlimited marital deduction.
- 5Optionally enter state estate tax exemption and rate if your state has an estate tax.
The formula
- GE
- — Gross estate (all assets at fair market value)
- D
- — Debts and deductible expenses
- C
- — Charitable deductions
- Ex
- — Federal exemption ($15,000,000 single / $30,000,000 married, 2026)
Worked example
The scenario
$20,000,000 estate, single filer, $400,000 in debts, no charitable deductions, no state estate tax.
The result
Adjusted estate = $19,600,000. Federal taxable estate = $19,600,000 − $15,000,000 = $4,600,000. Federal tax = $4,600,000 × 40% = $1,840,000. Net estate to heirs = $17,760,000. Effective rate = 9.39%.
Common use cases
- Estate planning: determine whether your estate will owe federal tax and by how much.
- Evaluate the value of leaving assets to a surviving spouse (marital deduction vs. using the exemption now).
- Quantify how charitable bequests reduce estate tax liability.
- Compare estate tax burden in different states when planning residency.
- Determine whether an irrevocable life insurance trust (ILIT) or annual gifting strategy is worth pursuing.
Limitations & assumptions
- Prior taxable lifetime gifts reduce your remaining federal exemption — this calculator assumes the full exemption is available.
- Does not account for special valuation rules for farm and small business property (IRC §2032A and §6166).
- Life insurance proceeds in the decedent's own name are included in the gross estate — only policy ownership by an ILIT removes them.
- The portability election (allowing the surviving spouse to use the deceased spouse's unused exemption) must be filed on a timely estate tax return.
- State estate tax rates are often graduated (not flat) — this calculator uses a simplified flat rate for state tax.
- Consult an estate attorney for strategies including GRATs, QPRTs, family limited partnerships, and charitable remainder trusts.
Frequently asked questions
What is the federal estate tax exemption for 2026?
What states have their own estate tax in 2026?
What is the difference between estate tax and inheritance tax?
How does the unlimited marital deduction work?
What happened to the exemption sunset that was scheduled for 2026?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.