Estate Tax Calculator Online Free
Estate Tax Calculator
2025 Federal Estate Tax: Lifetime exemption of $13.99 million, 40% tax rate on amounts above exemption. Annual gift exclusion: $19,000.
Assets
Total Assets: $0
Liabilities, Costs, and Deductibles
Total Liabilities: $0
Total amount you've gifted tax-free in your lifetime
Annual gift exclusion: $19,000 per person (2025)
✅ Estate Below Tax Threshold
No federal estate tax due - estate is below exemption threshold
Estate Tax Calculation Breakdown
Gross Estate (Total Assets)
$0
Less: Liabilities & Deductions
-$0
Net Estate
$0
Plus: Lifetime Gifts
+$0
Adjusted Taxable Estate
$0
Less: Federal Exemption (2025)
-$13,990,000
Taxable Estate
$0
Federal Estate Tax (40%)
$0
Net Amount to Heirs (after federal estate tax)
$0
Quick Estate Planning Tips
💰 Use Your Wealth
Spend or gift assets during your lifetime to reduce estate value.
❤️ Charitable Donations
Gifts to 501(c)3 charities avoid federal estate taxation entirely.
💍 Spousal Transfer
Assets passed to spouse are exempt from estate tax (unlimited marital deduction).
🎁 Annual Gifts
Gift up to $19,000 per person per year tax-free.
📋 Create a Trust
Trusts can protect assets and significantly reduce estate taxes.
👨⚖️ Consult Professionals
Estate planning is complex - work with attorneys and financial advisors.
The federal estate tax applies to the transfer of wealth at death above a substantial exemption. For 2024, estates below $13.61 million per person are exempt from federal estate tax. This calculator estimates potential estate tax liability so you can plan ahead with the appropriate strategies.
Federal Estate Tax Overview
The estate tax is applied to the taxable estate (gross estate minus deductions) above the exemption amount. Unlimited transfers to a U.S. citizen spouse are exempt. Charitable bequests are also deductible. The top rate is 40% on amounts above the exemption.
Taxable Estate = Gross Estate - Deductions (debts, admin expenses, charity, marital) Estate Tax = (Taxable Estate - Exemption) × 40% (Simplified; actual rates are graduated 18-40% above threshold)
2024 federal exemption: $13.61M per individual, $27.22M for married couples.
Estate Tax Planning Strategies
Most estates are well below the federal exemption, but state estate taxes apply at lower thresholds in some states. Planning strategies for large estates include annual gift exclusions ($18,000 per recipient in 2024), irrevocable life insurance trusts (ILITs), grantor retained annuity trusts (GRATs), and charitable giving strategies.
| Strategy | How It Reduces Estate |
|---|---|
| Annual Gift Exclusion | Give up to $18,000/person/year tax-free |
| Spousal Transfer | Unlimited transfer to citizen spouse tax-free |
| Charitable Giving | Bequests to qualified charities are deductible |
| Irrevocable Life Insurance Trust | Keeps life insurance proceeds out of estate |
| Portability | Surviving spouse can use deceased spouse's unused exemption |
Frequently Asked Questions
What is the estate tax exemption in 2024?⌄
The federal estate tax exemption is $13.61 million per individual in 2024 (indexed for inflation). For a married couple, portability allows the surviving spouse to use the deceased spouse's unused exemption, effectively doubling the couple's combined exemption. This high exemption sunsets at end of 2025 and may revert to approximately $7 million per person unless Congress acts.
Are there state estate taxes?⌄
Yes, 12 states and D.C. have their own estate taxes with lower exemptions than the federal threshold. Oregon and Massachusetts have some of the lowest thresholds (around $1 million). If you live or own property in one of these states, your estate may owe state estate tax even if federal tax does not apply.
What is the difference between estate tax and inheritance tax?⌄
Estate tax is paid by the estate before assets are distributed to heirs. Inheritance tax is paid by the individual beneficiaries receiving assets. Only 6 states have inheritance taxes. The federal government only has an estate tax, not an inheritance tax.
Does life insurance count toward the taxable estate?⌄
Life insurance proceeds are generally included in your taxable estate if you had "incidents of ownership" (ability to change beneficiaries, access cash value, borrow against the policy). Moving ownership to an Irrevocable Life Insurance Trust (ILIT) at least 3 years before death removes the proceeds from your estate.