Estate Tax Calculator – Estimate Potential Estate Taxes
Estimate US federal estate tax on a taxable estate above the exemption.
About the Estate Tax Calculator
What is the Estate Tax Calculator?
An estate tax calculator estimates how much federal estate tax may be owed when an estate exceeds the exemption threshold.
Why use this calculator?
Large estates can face a significant tax bill, and planning ahead with trusts, gifts and charitable giving is common. This tool gives a quick indication of potential liability.
How to use it
- Enter the total value of the estate.
- Subtract debts, charitable gifts and marital deductions.
- Enter the current federal exemption and the top rate.
- See the taxable estate and estimated tax.
Formula
Taxable estate = gross − deductions − exemption; tax = taxable estate × rate.
State estate or inheritance taxes may also apply. Exemptions change with legislation; confirm current figures.
Frequently Asked Questions
What counts as part of a gross estate?
Cash, investments, real estate, business interests, life insurance proceeds and most other assets owned or controlled by the deceased.
Does a spouse pay estate tax?
Assets passing to a surviving spouse are usually fully deductible under the unlimited marital deduction, postponing the tax until the second death.
What is the difference between marginal and effective tax rate?
Your marginal rate applies to your last dollar of income. Your effective rate is the average rate you pay across all income, which is always lower.
What is a tax deduction versus a credit?
A deduction reduces taxable income, so it saves you your marginal rate on that amount. A credit reduces your tax bill directly, dollar for dollar.
What is taxable income?
It is your gross income minus adjustments and deductions that the tax code allows, such as the standard deduction or retirement contributions.
Do these results reflect my exact jurisdiction?
No. Tax rules differ widely by country, state and year. Use these numbers as an approximation and confirm with official tables or a tax professional.
What is compound interest?
Compound interest is interest earned on both your original money and on previously earned interest. Over time it can make savings grow much faster than simple interest.
What is the difference between nominal and effective return?
The nominal return ignores compounding within the year, while the effective (annualised) return accounts for it. The effective figure is usually higher and better reflects real growth.
How does inflation affect my returns?
Inflation erodes purchasing power. The real return is the nominal return minus inflation, so an investment can grow in dollars yet still lose value in what it can buy.
What rate of return should I assume?
A common long-term assumption for a diversified stock portfolio is about 6% to 8% per year after inflation, but returns vary and are never guaranteed.