Inheritance & Estate Tax Calculator
Estimate federal estate tax on an inheritance: exemption usage, 40% top rate, portability, and state-level exposure. Free, instant, nothing stored.
The federal estate tax only bites large estates — but "large" means above the inflation-indexed exemption (over $13M per person in 2024–2026 terms), and the rate above it is a steep 40%. This calculator takes the gross estate, subtracts debts and charitable gifts, and applies the exemption to show exposure.
It also flags the state layer: a dozen states levy their own estate or inheritance taxes with thresholds far below the federal one — sometimes catching estates in the low single-digit millions.
100% in-browser · no upload · no signup · nothing you paste or drop here leaves your device
Estate & Inheritance Tax Calculator
Estimate federal and state estate tax for 2025, with deduction and lifetime gift tracking.
• Irrevocable Trust removes assets from estate
• Spouse Portability: transfer unused exemption
• Life Insurance in ILIT: proceeds outside estate
This calculator provides simplified estimates only. Federal estate tax uses a flat 40% rate above exemption (actual rates are progressive 18-40%). State rates are simplified to maximum rates. Inheritance tax varies by heir relationship. This is not legal or tax advice — consult an estate planning attorney.
How estate tax works — illustrated
The federal estate tax is a transfer tax on the right to pass wealth at death. Under the OBBBA (P.L. 119-21), the 2026 federal exemption is permanently set at $15 million per person — married couples can shelter up to $30 million, partly through portability of the unused exemption. Only the portion of your taxable estate above the exemption is taxed, and because the unified credit effectively wipes out the lower brackets of IRC §2001(c), the net rate on that excess is a flat 40%. Lifetime taxable gifts reduce the exemption you have left, while charitable and marital bequests reduce the estate itself. A dozen states layer on their own estate or inheritance tax — Connecticut, for example, taxes estates above $15 million at up to 12%. For the vast majority of estates the exemption means no federal tax at all; it matters only for larger estates and for state-level planning.
Sample: a single filer in Connecticut with an $18M estate, $1M of lifetime gifts already used, and a $1M charitable bequest. Federal exemption $14M (after gifts); CT taxes the amount above its own $15M exemption at 12%.
Elena is a widow living in Connecticut (single filing status). Her estate is worth $18M, she already used $1M of her exemption on lifetime gifts, and she leaves a $1M charitable bequest. Connecticut taxes estates above $15M at up to 12%.
- Gross estate:$18M total estate − $1M charitable bequest = $17M
- Available exemption:$15M 2026 federal exemption − $1M lifetime gifts = $14M
- Federal tax:($17M − $14M) = $3M taxable × 40% = $1,200,000
- State + net:CT: ($17M − $15M) × 12% = $240,000 → net to heirs ≈ $16,560,000
About this inheritance tax calculator
This page covers do heirs pay tax on inheritance, estate tax exemption 2026, federal inheritance tax rate, does my state have estate tax — all the same underlying task as inheritance tax calculator. The tool above is FreeToolHub's estate tax calculator embedded in full: every feature works right here, and nothing you process is uploaded to any server.
Frequently asked questions
Do beneficiaries pay tax on an inheritance?
At the federal level, no — the estate pays any estate tax before distribution, and inherited assets get a stepped-up cost basis (so selling inherited stock or property only triggers capital gains on appreciation after the date of death). Six states levy inheritance tax on certain beneficiaries instead: Iowa (repealed 2025), Kentucky, Nebraska, New Jersey, Pennsylvania, and Maryland.
How big does an estate need to be to owe federal estate tax?
Above the federal exemption — historically $13.61M per person in 2024, rising with inflation and scheduled to shift under the 2025 OBBBA framework. Married couples can effectively double it with portability. Far more estates get caught by state-level taxes with thresholds as low as $1M (Oregon) or $2M (New York, Massachusetts).