Precision Utility
US Estate Tax
Calculator
Tax Year
2025
Top Rate
40%
Estimate your 2025 federal estate tax based on the current $13.99 million exemption. Enter your total estate value, marital status, and charitable bequests to see how much estate tax may be owed and what your heirs will receive.
Estate Details
Federal Estate Tax
$0
Gross Estate
$0
Exemption Used
$0
Taxable Estate
$0
Effective Rate
0.0%
Net to Heirs
$0
How the estate tax calculator works
Enter your total estate value, including all assets such as real estate, investments, bank accounts, retirement accounts, life insurance proceeds, and personal property. Select your marital status and enter any charitable bequests you plan to make.
The calculator subtracts the 2025 federal estate tax exemption ($13.99 million for single individuals, $27.98 million for married couples using portability), charitable deductions, and the unlimited marital deduction (if married) from your gross estate to determine your taxable estate.
The federal estate tax rate is 40% on the taxable amount above the exemption. The results show your gross estate, exemption used, taxable estate, estate tax owed, effective tax rate, and the net amount your heirs will receive.
2025 federal estate tax exemption
For 2025, the federal estate tax exemption is $13,990,000 per person. Married couples can effectively shelter up to $27,980,000 through portability of the unused exemption from the first spouse to die.
This elevated exemption was established by the Tax Cuts and Jobs Act of 2017 and is adjusted annually for inflation. It is currently scheduled to sunset after December 31, 2025, potentially dropping to approximately $7 million per person (inflation-adjusted) in 2026.
The estate tax applies only to the portion of an estate that exceeds the exemption. For estates below the threshold, no federal estate tax is owed. Source: IRS.gov.
What you need to know
The unlimited marital deduction allows you to leave any amount to a surviving U.S. citizen spouse without incurring estate tax. This effectively defers the tax until the second spouse dies, at which point the combined estate is taxed against the surviving spouse's exemption (plus any ported exemption).
Charitable bequests are fully deductible from the gross estate. Leaving assets to a qualified charity reduces your taxable estate dollar for dollar, with no cap on the deduction.
The step-up in basis resets the cost basis of inherited assets to their fair market value at the date of death. This can eliminate decades of unrealized capital gains for heirs, making it a powerful — and often overlooked — benefit of estate planning.
Gift tax vs. estate tax
The gift tax and estate tax share a single unified lifetime exemption of $13.99 million in 2025. Taxable gifts made during your lifetime reduce your remaining estate tax exemption dollar for dollar.
However, you can give up to $18,000 per recipient per year (the 2025 annual exclusion) without using any of your lifetime exemption. Married couples can give $36,000 per recipient per year by splitting gifts. Gifts for tuition or medical expenses paid directly to institutions are also excluded.
Strategic lifetime gifting can reduce the size of your taxable estate, especially if gifted assets appreciate significantly after the transfer.
Frequently asked questions
Who has to pay federal estate tax?
Only estates valued above the federal exemption ($13.99 million per person in 2025) owe estate tax. This means roughly 0.1% of all estates — about 1 in 1,000 — actually pay any federal estate tax. The tax is paid by the estate itself before assets are distributed to heirs.
Is the estate tax exemption going down in 2026?
Yes. The current elevated exemption was set by the Tax Cuts and Jobs Act of 2017 and is scheduled to sunset after 2025. Without new legislation, the exemption is expected to drop to roughly $7 million per person (adjusted for inflation) starting January 1, 2026, which would subject many more estates to the tax.
What is portability and how does it work for married couples?
Portability allows a surviving spouse to use the deceased spouse's unused estate tax exemption. In 2025, a married couple can effectively shield up to $27.98 million from estate tax. The surviving spouse must file IRS Form 706 for the deceased spouse to elect portability, even if no estate tax is owed.
What is the difference between gift tax and estate tax?
Gift tax applies to transfers made during your lifetime, while estate tax applies at death. Both share the same $13.99 million lifetime exemption. You can also give up to $18,000 per recipient per year (2025 annual exclusion) without using any of your lifetime exemption.
Do any states have their own estate or inheritance tax?
Yes. As of 2025, 12 states and Washington D.C. impose their own estate tax, often with much lower exemptions (as low as $1 million in Oregon and Massachusetts). Six states also levy an inheritance tax on beneficiaries. State taxes are separate from and in addition to federal estate tax.
What is a step-up in basis and why does it matter?
When you inherit assets, their cost basis is "stepped up" to the fair market value at the date of death. This means if you sell inherited stock or property, you only owe capital gains tax on appreciation after the date of death — not from the original purchase price. This can save heirs significant capital gains tax.