Estate Tax Calculator
Calculate federal estate tax liabilities, state inheritance tax cliff exemptions, spousal portability deductions, and generation-skipping transfer (GST) exposure.
Effective Tax Rate: 0.0% on a $$19,500,000 gross estate.
Gross Estate Assets & Deductions
Protecting Multigenerational Wealth Against Estate Taxes
The United States federal estate tax imposes a 40% top marginal rate on worldwide asset transfers exceeding the basic exclusion amount ($13.61 million per individual in 2024). Furthermore, twelve states and Washington D.C. impose separate state estate taxes with significantly lower exemption thresholds (e.g. $1 million in Oregon and Massachusetts, $2 million in Washington), creating severe tax liabilities for property owners and small business founders.
High-Net-Worth Features
Federal Unified Credit Modeling
Applies the latest IRS Section 2010 basic exclusion amount ($13.61M individual / $27.22M married).
State Estate Tax Cliff Engines
Includes state exemption thresholds for NY, MA, WA, OR, IL, CT, HI, MD, ME, MN, RI, VT, and DC.
Unlimited Spousal Deduction & DSUE
Calculates zero tax on transfers to a US citizen surviving spouse and models Deceased Spousal Unused Exclusion (DSUE) portability.
Charitable & Debt Deductions
Offsets gross estate with outstanding mortgages, administrative probate fees, and irrevocable charitable remainder trusts.
Tax Sunsetting Projections
Simulates the scheduled expiration of the Tax Cuts and Jobs Act (TCJA) returning exemptions to ~$7M adjusted for inflation.
Liquidity Shortfall Warning
Determines whether the estate possesses enough liquid cash to settle tax bills within 9 months without forced property sales.
Tax & Financial Planning Scenarios
- ✓High-Net-Worth Individuals ($10M+)
Plan irrevocable life insurance trusts (ILITs) and spousal lifetime access trusts (SLATs) to zero out 40% IRS exposure.
- ✓Multi-State Real Estate Owners
Calculate state estate tax exposure on secondary vacation properties in low-exemption states like Massachusetts and Oregon.
- ✓Family Business Succession
Safeguard privately held family enterprises against forced asset liquidations to pay IRS Form 706 taxes within 9 months.
- ✓Surviving Spouses
Ensure timely filing of IRS Form 706 to elect spousal portability of the deceased partner's unused exemption.
Frequently Asked Questions
What is the federal estate tax exemption limit?
For 2024, the federal estate tax exemption is $13.61 million per individual, or $27.22 million for a married couple utilizing portability. Any taxable estate value exceeding this threshold is taxed at a top marginal federal rate of 40%.
What is spousal portability (DSUE)?
Portability allows a surviving spouse to claim and use the deceased spouse's remaining unused federal estate tax exemption (Deceased Spousal Unused Exclusion, or DSUE), effectively doubling the family's total tax-free threshold. To elect portability, a timely IRS Form 706 estate tax return must be filed even if no tax is due.
Do life insurance proceeds count toward the estate tax?
Yes. If you personally own the life insurance policy at the time of your death, the full death benefit payout is included in your gross taxable estate. To keep life insurance proceeds outside your estate, policies are typically held inside an Irrevocable Life Insurance Trust (ILIT).
What states have their own state estate or inheritance tax?
Currently, 12 states (Washington, Oregon, Minnesota, Illinois, Maryland, Massachusetts, Rhode Island, Connecticut, New York, Vermont, Maine, Hawaii) and Washington D.C. have estate taxes. Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) levy an inheritance tax on beneficiaries.
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