Federal Estate Tax Calculator: Estimate Your Form 706 Liability
Estimate US federal estate tax the way Form 706 actually works — build the gross estate, subtract deductions, apply the unified rate schedule, and net the credit and any DSUE.
Result summary
federal-estate-tax-2 · tax year model 2024–2026 · methodology below.Estate Tax Audit Trail
Every line is labelled User input, Derived or Rule so you — or a publisher citing this tool — can reconstruct the result without trusting a black box.
| Line | Amount | Explanation | Status |
|---|---|---|---|
| Gross estate | $20,000,000 | Sum of all includible asset categories you entered. | Derived |
| Less: debts and administration expenses | −$0 | Mortgages, other debts, funeral and administration costs. | User input |
| Less: marital deduction | −$0 | Unlimited deduction for transfers to a surviving U.S.-citizen spouse. | User input |
| Less: charitable deduction | −$0 | Unlimited deduction for bequests to qualifying charities. | User input |
| Less: other allowable deductions | −$0 | Deductible state death taxes and other allowable deductions. | User input |
| Taxable estate | $20,000,000 | Gross estate minus all allowable deductions (floored at $0). | Derived |
| Plus: adjusted taxable gifts | +$0 | Post-1976 taxable gifts not already in the gross estate (Form 706 Line 4). | User input |
| Estate-and-gift tax base | $20,000,000 | Taxable estate plus adjusted taxable gifts. | Derived |
| Tentative tax | $7,945,800 | IRC §2001(c) unified rate schedule (18%–40%) applied to the base. | Rule |
| Less: applicable (unified) credit | −$5,945,800 | Tentative tax on the applicable exclusion (Basic exclusion $15,000,000). | Rule |
| Less: gift-tax payable offset | −$0 | Gift tax paid/payable on the gifts at date-of-death rates (IRC §2001(b)(2)). | User input |
| Estimated federal estate tax | $2,000,000 | max(0, tentative tax − gift-tax offset − applicable credit). | Derived |
| Net estate after estimated federal estate tax | $18,000,000 | Gross estate minus the estimated federal estate tax. | Derived |
| Liquidity surplus / shortfall | +$5,500,000 | Readily-liquid assets minus the estimated federal estate tax. | Derived |
Liquidity Risk Check
- This estimates only the federal estate tax. It does not compute any state estate or inheritance tax.
- Portability/DSUE is never applied automatically and marital status alone adds no DSUE. Enter only the DSUE amount documented on the predeceased spouse’s Form 706 portability election (a timely filed return, or a return treated as timely under IRS relief such as Rev. Proc. 2022-32). The tool does not validate the predeceased spouse’s year of death or reconstruct the election.
- Adjusted taxable gifts and the gift-tax offset are entered as Form 706 figures; the tool does not recompute historical gift tax.
- Real determinations depend on valuation, ownership and elections. Consult a qualified estate-tax professional.
Assumptions and Limitations
Assumptions
- All asset values are current fair market values as of the date of death (alternate valuation date is not modeled).
- The gross estate is the transparent sum of the ten asset categories you enter; you are responsible for including only the decedent’s includible share and for avoiding double counting.
- The marital deduction applies only to outright includible transfers to a surviving U.S.-citizen spouse; QDOT arrangements for non-citizen spouses are not modeled.
- Any DSUE you enter is the amount already documented on the predeceased spouse’s Form 706 portability election — a timely filed return, or a return treated as timely under applicable IRS relief (Rev. Proc. 2022-32). The tool uses it in full up to a $15,000,000 technical maximum and does not reconstruct it, cap it at the survivor’s year exclusion, or validate the predeceased spouse’s year of death.
- Adjusted taxable gifts and any gift-tax-payable offset are entered as the Form 706 figures; the tool does not recompute historical gift tax year by year.
- The 40% top rate and $1,000,000 bracket breakpoint are statutory and are not inflation-indexed.
Limitations
- Does not calculate any state estate tax or state inheritance tax; those are separate and often apply at far lower thresholds.
- Does not support nonresident non-citizen estates (Form 706-NA), treaty positions or QDOT trusts.
- Does not compute generation-skipping transfer (GST) tax, special-use valuation, the alternate valuation date, or IRC §6166 deferral.
- Does not recompute complex prior-gift histories, restored exclusion, or the legal validity of deductions and ownership.
- Portability/DSUE is never applied automatically from marital status — you must enter a documented DSUE amount.
- This is an educational estimate, not a Form 706 determination and not legal or tax advice.
Supported and not supported
Supported
- Federal estate tax estimate for years of death 2024, 2025 and 2026
- Ten includible asset categories and eight deduction categories
- User-entered, documented DSUE (portability) used in full up to the $15,000,000 technical maximum
- Adjusted taxable gifts — Form 706 Part 2 (within the model)
- Gift-tax payable offset (as a Form 706 figure)
- Audit trail and liquidity diagnostic
Not supported
- State estate tax and state inheritance tax amounts
- Nonresident non-citizen estates (Form 706-NA), treaties, QDOT
- Generation-skipping transfer (GST) tax
- Special-use valuation and the alternate valuation date
- Complex prior-gift recomputation and IRC §6166 deferral
- Legal validity of deductions, ownership disputes, valuation discounts
Gross estate, taxable estate and the amount above the exemption
These three numbers are not interchangeable, and confusing them is the single most common estate-tax error. The gross estate is everything includible at fair market value before anything is subtracted. The taxable estate is what remains after allowable deductions (debts, expenses, the marital and charitable deductions, deductible state death taxes). The amount effectively taxed is the tax base minus the applicable exclusion.
Only the last of those — value above the applicable exclusion — is what the 40% top rate actually reaches. A $5,000,000 gross estate in 2026 is comfortably inside the $15,000,000 exclusion, so its taxable estate is $5,000,000 and its federal estate tax is $0. This tool labels each figure separately and never uses "taxable estate" to mean "amount above the exemption".
What goes into the gross estate
The gross estate includes real estate, cash and bank accounts, marketable securities, retirement accounts, closely held business interests, the includible portion of jointly owned property, life insurance the decedent owned or controlled, revocable and other includible trusts, vehicles and collectibles, and any other includible property.
Two traps: life insurance held in a properly structured irrevocable life insurance trust (ILIT) is generally NOT includible — enter $0 for those policies — and jointly owned property or trust assets should be entered once, at the includible share, to avoid double counting value already listed elsewhere.
Deductions: debts, expenses, marital and charitable
Enforceable debts (mortgages, other liabilities), funeral costs and estate administration expenses reduce the taxable estate. So do two unlimited deductions: the marital deduction for property passing to a surviving U.S.-citizen spouse, and the charitable deduction for bequests to qualifying charities.
The marital deduction defers rather than erases tax: property that passes to the spouse tax-free is potentially taxed in the second spouse’s estate. That is where portability of the first spouse’s unused exclusion becomes important.
Portability and DSUE are never automatic
When the first spouse dies, any unused basic exclusion can be transferred to the survivor as the deceased spousal unused exclusion (DSUE) — but only if the estate makes the portability election on a valid Form 706. That means a timely filed return, or a return treated as timely under applicable IRS relief (Rev. Proc. 2022-32, which allows a late portability election on or before the fifth anniversary of the first death). It does not happen by default, and it is not the same thing as the marital deduction.
This calculator will not add a second exclusion just because you select "married". If a valid election was made, enter the DSUE amount exactly as documented on that Form 706; the tool uses it in full and does not cap it at the survivor’s year basic exclusion, does not validate the predeceased spouse’s year of death, and does not reconstruct the election. Only a global technical maximum of $15,000,000 applies — a larger figure is rejected as a validation error and treated as $0. If no election was made, leave it at $0.
Adjusted taxable gifts and the unified system
The estate and gift taxes are unified: large lifetime gifts use up the same exclusion that shelters the estate. Post-1976 taxable gifts that are not already in the gross estate are added back as "adjusted taxable gifts" so the progressive rate schedule is applied to the full transfer history, and any gift tax actually paid is credited via the gift-tax offset.
This is not "the sum of every gift you ever made". Gifts within the annual exclusion ($18,000 in 2024, $19,000 in 2025 and 2026, per recipient) do not count, and gifts already included in the gross estate are not double-counted.
Federal estate tax versus state death taxes
The federal estate tax is only part of the picture. A number of states levy their own estate tax at thresholds far below the federal $15M — Oregon and Massachusetts start around $1–$2M — and a few states levy an inheritance tax paid by the beneficiary. Those are separate regimes with their own rules.
This tool estimates only the federal tax. It lets you deduct state death taxes you actually paid (IRC §2058) but does not compute any state liability, and it does not fold an unverified state rate into the federal total.
Why this is an estimate, and when you need Form 706
Real estate-tax determinations turn on asset valuation, legal ownership, trust interpretation and elections — judgments this tool cannot make. Treat the output as an educational estimate that shows the mechanics, not a filing.
Form 706 is generally required when the gross estate plus adjusted taxable gifts exceeds the exclusion, and is filed even with no tax due to elect portability. For any estate near or above the exemption, engage a qualified estate-tax professional.
Federal estate tax by estate size (2026, $15M exclusion)
Estimated federal estate tax for a single decedent in 2026 with no deductions and no prior taxable gifts, using the $15,000,000 basic exclusion and the IRC §2001 unified rate schedule. Excludes any state estate or inheritance tax.
| Gross estate | Applicable exclusion | Taxable base above exclusion | Estimated federal estate tax |
|---|---|---|---|
| $5,000,000 | $15,000,000 | $0 | $0 |
| $15,000,000 | $15,000,000 | $0 | $0 |
| $20,000,000 | $15,000,000 | $5,000,000 | $2,000,000 |
| $30,000,000 | $15,000,000 | $15,000,000 | $6,000,000 |
| $50,000,000 | $15,000,000 | $35,000,000 | $14,000,000 |
| $30,000,000 (with $15M documented DSUE) | $30,000,000 | $0 | $0 |
DSUE is included only when a valid portability election was made — on a timely filed Form 706, or on a return treated as timely under applicable IRS relief (Rev. Proc. 2022-32) — and is entered as the amount documented on that election. State estate/inheritance taxes are separate and not shown here.
Frequently Asked Questions
How is federal estate tax actually calculated?
Gross estate minus allowable deductions equals the taxable estate. Add adjusted taxable gifts, apply the IRC §2001 unified rate schedule (18% to 40%) to that base for a tentative tax, then subtract the applicable (unified) credit and any gift tax payable. Because the credit shelters the exclusion amount, only value above the exemption is effectively taxed — at 40% for large estates.
What is the federal exemption in 2026?
The basic exclusion amount is $15,000,000 per individual for 2026, made permanent and indexed for inflation by the One Big Beautiful Bill Act of 2025. It was $13,610,000 in 2024 and $13,990,000 in 2025. The previously scheduled post-2025 reduction to roughly $7M was repealed and no longer applies.
What is the difference between gross estate, taxable estate and the amount above the exemption?
Gross estate is everything includible before deductions. Taxable estate is what remains after deductions. The amount above the exemption is the taxable base minus the applicable exclusion — only that slice is effectively taxed. A $5M gross estate is not a $5M taxable amount above the exemption; in 2026 it is fully within the $15M exclusion and owes $0.
Does being married automatically double my exemption?
No. Marriage does not double the exemption automatically, and marital status alone adds no DSUE. A surviving spouse can add a deceased spouse’s unused exclusion (DSUE) only if a valid portability election was made — on a timely filed Form 706, or on a return treated as timely under applicable IRS relief (Rev. Proc. 2022-32). This tool never applies DSUE from marital status: you enter the amount documented on that election, and the tool uses it in full without capping it at your year’s basic exclusion and without reconstructing it from a year of death.
How do the marital and charitable deductions work?
Both are unlimited. Property passing outright to a surviving U.S.-citizen spouse qualifies for the marital deduction, which defers tax to the second death rather than eliminating it. Bequests to qualifying charities qualify for the charitable deduction and remove that value from the taxable estate permanently.
What are adjusted taxable gifts, and are they the sum of all my gifts?
No. Adjusted taxable gifts are post-1976 taxable gifts (after annual exclusions) that are not already in the gross estate — the Form 706 Line 4 figure. They are added back to the tax base so the progressive schedule is applied correctly. Gifts within the annual exclusion, and gifts already included in the estate, are not counted again.
What is the difference between estate tax and inheritance tax?
Estate tax is paid by the estate before assets are distributed; the US federal government levies an estate tax. Inheritance tax is paid by the recipient after receiving assets; a few states (e.g. Pennsylvania, Nebraska) levy one. This calculator estimates only the federal estate tax.
Can an estate under $15 million still owe tax?
Not federally in 2026, but possibly at the state level. Several states impose their own estate tax at thresholds far below the federal $15M (for example Massachusetts and Oregon), and a few impose an inheritance tax. Those are separate and are not included in this federal estimate.
When is Form 706 required, and is this a substitute?
Form 706 is generally required when the gross estate plus adjusted taxable gifts exceeds the exclusion, and is filed even when no tax is due if the family wants to elect portability. This calculator is an educational estimate to help you understand the mechanics — it is not a Form 706 filing and not a substitute for a qualified estate-tax professional.
Is this tax advice?
No. This is an educational estimate of federal estate tax based on the figures you enter. Estate tax involves valuation, legal ownership and elections that require professional judgment. Consult a qualified estate-planning attorney or tax advisor before acting.
Evidence, sources and editorial review
Federal Estate Tax Calculator: Estimate Your Form 706 Liability groups its evidence and methodology review here so sources, assumptions and responsibility can be checked together.
Methodology & formula
Federal Estate Tax (IRC §2001 / Form 706, Part 2). Taxable estate = Gross estate − Deductions · Tentative tax = RateSchedule(Taxable estate + Adjusted taxable gifts) · Estimated tax = max(0, Tentative tax − Gift-tax offset − Applicable credit)
Applicable credit = RateSchedule(Basic exclusion + valid documented DSUE). Basic exclusion by year of death: $13,610,000 (2024) / $13,990,000 (2025) / $15,000,000 (2026). Rate schedule is the IRC §2001(c) unified table: 18% on the first $10,000 up to 40% on amounts over $1,000,000 (statutory, not indexed). DSUE is the amount documented on the predeceased spouse’s Form 706 portability election; it is used in full anywhere in $0–$15,000,000 and is not capped at the survivor’s year basic exclusion. A documented DSUE above $15,000,000 is a validation error and is treated as $0.
This calculator estimates US federal estate tax using the Internal Revenue Code §2001 mechanics reflected in Form 706, Part 2. It sums includible assets into a gross estate, subtracts allowable deductions (debts, funeral and administration expenses, the unlimited marital and charitable deductions, deductible state death taxes and other allowable deductions) to reach the taxable estate, adds adjusted taxable gifts, applies the full unified rate schedule (18% to 40%) to the combined base to get a tentative tax, then subtracts any gift-tax-payable offset and the applicable (unified) credit — the tentative tax on the applicable exclusion amount (basic exclusion for the year of death plus any documented DSUE). Basic exclusion amounts: $13,610,000 (2024), $13,990,000 (2025) and $15,000,000 (2026, made permanent and indexed by the One Big Beautiful Bill Act of 2025, confirmed in IRS Rev. Proc. 2025-32). DSUE is taken as the amount documented on the predeceased spouse’s Form 706 portability election (a timely filed return, or a return treated as timely under applicable IRS relief such as Rev. Proc. 2022-32); it is used in full up to a $15,000,000 technical maximum and is never reconstructed from a year of death or capped at the survivor’s year basic exclusion. The tool is an educational estimate, not a Form 706 filing, a state-tax determination, or legal or tax advice.
Reviewed according to the CalcDomain Editorial Policy & Calculator Methodology. We document formulas, edge cases, sources, update dates, and correction paths for calculator pages.
Updated · engine federal-estate-tax-2
References & Authoritative Sources
- Internal Revenue Service (IRS) — Estate Tax · consulted July 29, 2026 · Federal regulator overview of the estate tax.
- Internal Revenue Service (IRS) — Instructions for Form 706 · consulted July 29, 2026 · Part 2 tax computation and Table A unified rate schedule.
- U.S. Congress / Cornell LII — 26 U.S. Code §2001 — Imposition and rate of tax · consulted July 29, 2026 · Statutory rate schedule and computation, including adjusted taxable gifts.
- Internal Revenue Service (IRS) — Estate and Gift Tax FAQs / annual inflation adjustments · consulted July 29, 2026 · Basic exclusion amounts by year and portability guidance.
- American College of Trust and Estate Counsel (ACTEC) — Estate Planning Resources · consulted July 29, 2026 · Professional guidance on portability, DSUE and estate planning.
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Update history
| Date | Version | Change |
|---|---|---|
| 2026-07-04 | 1.0 | Original percentage-based estate tax calculator (taxable estate × rate). |
| 2026-07-29 | 2.0 | Rebuilt as a federal estate tax planner: gross-estate build-up, deductions, IRC §2001 unified rate schedule, unified credit, non-automatic DSUE portability, adjusted taxable gifts, audit trail and liquidity diagnostic. |
| 2026-07-30 | 2.1 | Corrected DSUE handling: a documented DSUE is now used in full anywhere from $0 to a $15,000,000 technical maximum, with no cap based on the survivor’s year of death and no reconstruction from a year of death (a larger figure is a validation error treated as $0). Removed the misleading lifetime-exemption-used input and the separate remaining-exclusion output, which double-counted against the Form 706 credit. Fixed the portability wording to a valid election on a timely filed Form 706, or a return treated as timely under applicable IRS relief (Rev. Proc. 2022-32). Re-verified the 2026 basic exclusion, annual gift exclusion and rate schedule against IRS primary sources (Form 706 instructions, IRS estate-tax page, Rev. Proc. 2025-32). Engine version bumped to federal-estate-tax-2. |