The federal estate tax only applies above a large exemption — large enough that the overwhelming majority of estates owe nothing at all.
How it works
The 2026 exemption is $15,000,000 per individual. Only the value of an estate above the remaining exemption is taxed, at a flat 40% rate. Taxable gifts made during life — above the annual exclusion this site’s gift tax exclusion calculator covers — draw down the same lifetime exemption, which is why they reduce what’s left available at death.
Federal only — states can differ
A number of states levy their own separate estate or inheritance tax, frequently with an exemption far lower than the federal one — an estate that owes nothing federally can still owe state tax, which this calculator doesn’t cover.
How to use this calculator
- Enter the gross estate value.
- Enter any taxable gifts already made during life, if any.
Frequently asked questions
Does a surviving spouse pay estate tax on an inheritance?
Generally no — assets passing to a U.S. citizen spouse are unlimited and untaxed under the marital deduction, separate from the exemption this calculator applies.
Is the exemption per person or per married couple?
Per individual — a married couple can effectively combine both exemptions with proper estate planning, which can roughly double the amount that passes tax-free.
Does the exemption change every year?
Yes — it’s indexed for inflation and adjusted annually by the IRS, so a figure from a prior year may already be out of date.
