Estate Tax Calculator: 2026 Federal Exemption of $15 Million
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The federal estate tax for 2026 is 40% of the taxable estate above the $15,000,000 exemption. An $18,000,000 estate with $500,000 of debts and costs has a taxable estate of $17,500,000, so the tax is 40% × $2,500,000 = $1,000,000.
Your taxable estate of $17,500,000 is $2,500,000 above the $15,000,000 2026 exemption. At 40%, the federal estate tax comes to about $1,000,000, or 5.6% of the estate.
If the estate were larger or smaller
| Estate value | Federal estate tax | Effective rate |
|---|---|---|
| $9,000,000 | $0 | 0.0% |
| $13,500,000 | $0 | 0.0% |
| $18,000,000 | $1,000,000 | 5.6% |
| $22,500,000 | $2,800,000 | 12.4% |
| $27,000,000 | $4,600,000 | 17.0% |
| $36,000,000 | $8,200,000 | 22.8% |
Show the steps
- Subtract deductions: $18,000,000 − $500,000 (debts and costs) − $0 (spouse) − $0 (charity) = $17,500,000.
- Add earlier taxable gifts: $17,500,000 + $0 = $17,500,000.
- Subtract the exemption: $17,500,000 − $15,000,000 = $2,500,000.
- Multiply the amount over by 40%: $2,500,000 × 0.40 = $1,000,000.
Federal estate tax formula
Tax = 40% × (taxable estate + taxable gifts − exemption), if positive
Exemption for 2026 = $15,000,000 per person, plus any DSUE from a late spouse
- Uses the 2026 federal basic exclusion amount of $15,000,000 and a 40% rate above it. The amount is indexed for inflation after 2026.
- Property left to a U.S.-citizen spouse is not taxed at the first death. A surviving spouse can use a late spouse’s unused exemption (DSUE) only if the estate filed Form 706 to elect portability.
- Some states have their own estate or inheritance taxes with much lower thresholds. This calculator covers the federal tax only.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
The federal estate tax is a tax on the value of everything a person leaves behind at death. Most estates owe nothing, because the exemption is very large. For people who die in 2026 the basic exclusion amount is $15 million per person. A married couple can shelter up to $30 million when the surviving spouse uses the late spouse’s unused exemption.
This calculator starts with the total value of an estate, subtracts debts, funeral and administration costs, gifts to a spouse and gifts to charity, adds any large taxable gifts made during life, and compares the result with the exemption. Anything above the exemption is taxed at 40%.
It is a planning estimate for the federal tax only. Some states charge their own estate or inheritance tax with much lower thresholds, and the real calculation involves valuation, trusts and many special rules. Use the result to see whether estate tax is something to plan for, then work with an estate planning attorney.
How to use it
- Enter the total value of the estate: real estate, investments, retirement accounts, business interests and life insurance owned by the person.
- Enter debts, funeral costs and the costs of settling the estate.
- Enter the amount left to a spouse who is a U.S. citizen and the amount left to charity. Both are deductions.
- If they apply, open the gifts box to add taxable gifts made during life and any unused exemption from a late spouse (DSUE).
- Read the tax, the effective rate and the amount left for heirs. Use the chart and the table to see how the tax changes with a larger or smaller estate.
How the 2026 federal estate tax works
- The basic exclusion amount for 2026 is $15,000,000 per person. It is adjusted for inflation each year after 2026.
- The tax rate on the amount above the exclusion is 40%.
- Property left to a U.S.-citizen spouse and to qualified charities is deducted before the tax is computed.
- Taxable gifts made during life reduce the exemption available at death.
Worked example
An estate worth $18,000,000 has $500,000 of debts and costs. The taxable estate is $17,500,000. The exemption is $15,000,000, so $2,500,000 is over the line. At 40% the federal estate tax is $1,000,000. After debts and tax, about $16,500,000 is left for heirs.
Portability for married couples
When the first spouse dies, any unused part of their exemption can be carried over to the surviving spouse. This is called the deceased spousal unused exclusion, or DSUE. The executor has to file Form 706 to elect it, even if no tax is due. With full use of both exemptions a couple can leave $30,000,000 in 2026 without federal estate tax.
Gifts during life
You can give up to $19,000 per person in 2026 without any tax filing. Larger gifts do not usually cause tax right away, but they use up part of your lifetime exemption. This calculator adds them back so the exemption is not counted twice.
State estate and inheritance taxes
A number of states have an estate tax, an inheritance tax, or both, and many of them start at a much lower amount than the federal exemption. An estate that owes no federal tax can still owe state tax. Check the rules in the state where the person lived and in any state where they owned real estate.
Sources
Quick check: test yourself
In 2026 the federal estate tax exemption is 15,000,000. A taxable estate of $16,000,000 owes how much federal tax at 40%?
Correct answer: $400,000. Only the amount over 15,000,000 is taxed: $1,000,000 × 40% = $400,000.
What does the unlimited marital deduction do?
Correct answer: Property left to a U.S.-citizen spouse is not taxed at the first death. The tax is deferred until the surviving spouse dies.
What is the 2026 annual gift tax exclusion per recipient?
Correct answer: $19,000. You can give up to 19,000 per person in 2026 without using any of your lifetime exemption.
Pick an answer for each question.
Common questions
What is the federal estate tax exemption for 2026?
It is $15,000,000 per person for people who die in 2026. A married couple can use up to $30,000,000 together if the survivor elects portability.
What is the estate tax rate?
The top rate is 40%, and it applies to the amount of the taxable estate above the exemption.
Who pays estate tax?
The estate pays it, from its assets, before heirs receive their shares. Heirs usually do not pay federal estate tax themselves.
Is life insurance included in the estate?
Yes, if the person owned the policy or had control over it. Proceeds from policies owned by an irrevocable trust are usually outside the estate.
Do I owe estate tax if I leave everything to my spouse?
Not at the first death. Property left to a U.S.-citizen spouse is deductible. The tax question comes back when the surviving spouse dies.
Is there a federal inheritance tax?
No. The federal government taxes the estate, not the heirs. A few states charge an inheritance tax on the people who receive property.
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