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Estate Tax Calculator — Federal & State 2024

Calculate federal estate tax on the decedent’s estate above the 2024 exemption ($13.61M per person). Includes state estate tax for states that impose it. The estate pays — not heirs directly.

Taxing what heirs receive, not the whole estate?

This page models federal and state estate tax on the decedent’s gross estate. For state inheritance tax paid by beneficiaries, use the Inheritance Tax Calculator →

2024 Federal Exemption: $13.61 million per person ($27.22M for married couples) — Only estates above this threshold owe federal estate tax. The exemption is set to roughly halve in 2026 unless Congress acts.

What is Estate Tax?

Estate tax is levied on the total value of a deceased person’s estate before assets pass to beneficiaries. Federal estate tax applies only above the lifetime exemption (2024: $13.61 million per person, $27.22 million for a married couple with portability). The tax is paid by the estate from liquid assets or property sales.

Use this page when estimating tax on the gross estate — real estate, investments, business interests, and life insurance owned by the decedent. Deductions include debts, funeral expenses, charitable bequests, and the marital deduction.

Inheritance tax is different: a few states tax what each heir receives, with rates often varying by relationship to the decedent. For beneficiary-level inheritance tax estimates, use the Inheritance Tax Calculator.

How the Estate Tax Calculator Works

Formula, assumptions, and calculation steps for this tax tool.

Formula Used

Tax = (Gross Estate - Exemption) x Estate Tax Rate

Methodology

Subtracts the applicable estate tax exemption from the gross estate value, then applies the marginal estate tax rate to the remainder.

Calculation Steps

  1. Enter taxable amounts and any deductions or allowances.
  2. Apply the relevant brackets, rates, or tax percentage.
  3. Calculate gross tax, credits, or net amount where supported.
  4. Show totals for planning and comparison.

Assumptions and Limits

  • Tax rules change by jurisdiction and year.
  • Local surcharges, credits, and filing status details may not be exhaustive.
  • Consult a tax professional for filing decisions.

Frequently Asked Questions

The 2024 federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples using portability). Only estates exceeding this amount owe federal estate tax at a 40% flat rate on the excess. The exemption is indexed for inflation annually. It is scheduled to revert to approximately $7 million (inflation-adjusted) in 2026 unless Congress extends the current rates.

Key estate deductions: Unlimited marital deduction (assets left to U.S. citizen spouse), unlimited charitable deduction (assets to qualifying charities), debts owed by deceased (mortgages, credit cards), funeral expenses, estate administration costs (legal, accounting, executor fees), and state estate taxes paid. The marital deduction only defers estate tax — assets will be taxed in the surviving spouse's estate.

Portability allows the surviving spouse to add the deceased spouse's unused federal exemption to their own. If a spouse dies with a $5M estate (using $5M of their $13.61M exemption), the surviving spouse can elect to port the unused $8.61M. This must be elected on Form 706 within 9 months of death (or 15 months with extension), even if no tax is owed. Failure to file on time forfeits portability.

As of 2024, approximately 12 states and DC impose their own estate tax: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and Washington DC. Most state exemptions are lower than the federal exemption ($1M–$6.94M), meaning a moderate estate can escape federal tax but still owe state tax.

Real-World Applications

📋
Estate Planning
Calculate whether an estate will owe federal tax under both current (2024) and post-2025 sunset rules to plan gifting strategies.
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Lifetime Gift Strategy
Annual gifting ($18,000/person in 2024) reduces taxable estate size — model the impact of systematic gifts over time.
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Irrevocable Trust Planning
Assets transferred to irrevocable trusts (GRATs, ILITs) are removed from the taxable estate — calculate the tax benefit.
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Portability Election
Surviving spouses can use a deceased spouse's unused exemption — calculate the combined exemption for estate planning.
🏢
Business Succession Planning
Family business owners use valuation discounts (minority, lack of marketability) to reduce the taxable estate value.
🌍
State Estate Tax Planning
12 states plus DC impose state estate tax — residents of Massachusetts ($1M exemption) or Oregon ($1M) face tax thresholds far below the federal level.

Common Mistakes

1
Confusing estate tax with inheritance tax
Estate tax is paid by the estate before distribution; inheritance tax is paid by individual beneficiaries after receiving assets. The US has a federal estate tax but no federal inheritance tax (some states have both).
2
Forgetting about state estate taxes
Twelve states plus DC impose estate taxes with exemptions as low as $1 million — far below the federal threshold. High-net-worth individuals in these states face estate tax even when exempt at the federal level.
3
Not accounting for the 2026 exemption sunset
The TCJA exemption halves in 2026 without new legislation — estates between $7M and $13.6M are currently exempt but would be taxable under the reverted rules.
4
Undervaluing the portability election
The surviving spouse must file an estate tax return (Form 706) within 9 months of the first spouse's death to elect portability — missing this deadline forfeits the unused exemption.
5
Including jointly-held and life insurance incorrectly
Life insurance death benefits are included in the taxable estate if the decedent held incidents of ownership — transferring ownership to an ILIT 3+ years before death is the common solution.

States with Estate Tax (2024)

State Exemption Top Rate
Massachusetts $1.0 million 16%
Oregon $1.0 million 16%
Washington $2.193 million 20%
Maryland $5.0 million 16%
New York $6.94 million 16%
Connecticut $13.61 million 12%
Hawaii $5.49 million 20%

References

  1. Internal Revenue Service. Instructions for Form 706 — United States Estate Tax Return. IRS, 2024.
  2. Tax Foundation. Does Your State Have an Estate or Inheritance Tax? Tax Foundation, 2024.
  3. American Bar Association. Estate Planning Guide. ABA, 2023.
  4. Joint Committee on Taxation. Overview of Federal Tax Provisions Affecting Charitable Giving. JCT, 2023.
  5. Davenport, Chaya. Estate and Gift Tax Planning. Warren Gorham & Lamont, 2022.