Estate Tax Liability Estimator

How to calculate Estate Tax?

The federal estate tax is a tax on your right to transfer property at your death. It is calculated by accounting for everything you own or have interests in, determining the fair market value, and subtracting certain allowable deductions.

Gross Estate - (Debts + Expenses + Marital/Charity Deductions) = Taxable Estate

Using the Estate Tax calculator: an example

To illustrate how the math works, let's look at an individual passing in 2024 with a gross estate valued at $20,000,000.

Step-by-step calculation:

• Gross Assets: $20,000,000 in total property value.
• Exemption: Apply the 2024 federal exemption of $13.61M.
• Taxable Portion: The remaining taxable estate is approximately $6.39M.
• Estimated Tax: Calculating 40% tax on the excess results in a ~$2.55M tax bill.

Frequently Asked Questions

What is the marital deduction?
Assets passing to a surviving spouse who is a U.S. citizen are generally 100% deductible, effectively deferring estate taxes until the second spouse's death.

What is the current tax rate?
The top federal estate tax rate is currently 40%, which applies to the portion of the estate exceeding the lifetime exemption limit.

Does this include state taxes?
No, this estimator focuses exclusively on Federal Tax. Several states impose their own separate inheritance or estate taxes with different rules and thresholds.