Estate Tax Calculator
Estimate U.S. federal estate tax, effective rate and after-tax estate using the exemption and 40% rate.
Input Data
Results
At a glance:The U.S. federal estate tax applies only to the taxable estate above the exemption at a flat 40%. Most estates fall below the threshold and owe nothing; only very high net-worth estates are affected. This calculator estimates the tax, effective rate and after-tax amount.
Formula
Taxable estate = max(estate − exemption, 0).
Estate tax = taxable × 40%.
Effective rate = tax ÷ estate × 100%.
After-tax estate = estate − tax.
How to Use
- Enter the gross estate value at death.
- Set the federal exemption (default is a recent approximation).
- View taxable estate, estate tax, effective rate and after-tax estate.
FAQ
Why do most people pay no estate tax?
The federal exemption is high (about $13.61M per person in 2024, roughly $27M for a couple via portability), so most estates fall below it and owe nothing. Estate tax affects only very high net-worth estates; some states also levy a state estate tax with lower thresholds.
Do lifetime gifts affect estate tax?
Yes. The U.S. federal estate and lifetime gift taxes share one unified exemption: gifts made during life that use up part of the exemption reduce what remains at death. This calculator excludes lifetime gifts; real planning should include them.
Does this apply in Hong Kong?
No. Hong Kong abolished estate duty in 2006, so asset transfer at death does not involve a local estate tax. This calculator only illustrates the U.S. federal system, amounts in USD.
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References
Content review: Calculatorism Finance Team. Rates and exemption follow public IRS guidance for educational reference only; actual per IRS.