Estate Tax Calculator: Estimate Federal Estate Tax Liability
The estate tax is a levy on the transfer of a deceased person's assets before they pass to heirs. This estate tax calculator gives you a quick estimate of the potential federal tax on an estate by combining three simple inputs: the gross value of the estate, any deductions and debts, and the exemption amount that shields part of the estate from taxation. The result helps executors, families, and financial planners understand roughly how much of an estate might be owed in tax and how much would pass to beneficiaries.
The math is straightforward. First, deductions and debts (such as funeral costs, outstanding loans, mortgages, and charitable bequests) are subtracted from the gross estate to arrive at the net estate. Then the exemption is subtracted from the net estate to determine the taxable estate. Anything above the exemption is taxed at the top estate tax rate you enter. If the estate is worth less than the exemption, no federal estate tax is due and the full amount passes to heirs.
The exemption amount and the top rate are the two figures that change most often. The exemption defaults to the current US federal level and the top marginal rate defaults to 40%, but both are fully editable so the tool stays accurate as thresholds are adjusted for inflation each year and as tax law evolves. Many US states and several countries also impose their own separate estate or inheritance taxes with different exemptions and rates, so you can overwrite the defaults to model any jurisdiction. The figures shown are US federal defaults and should always be verified with a qualified estate attorney or tax advisor before you act on them.
Estate planning is only one part of a full financial picture. Once you understand the potential tax impact, explore our retirement calculator to project long-term savings, use the compound interest calculator to see how assets grow over time, and try the mortgage calculator to weigh property held within the estate.