How this calculator works
The taxable estate is the total value minus debts and expenses, minus what passes to a US-citizen spouse (unlimited marital deduction) and to charity.
Taxable gifts made during life above the annual exclusion are added back, because the exemption covers gifts and estates together.
The 2026 exemption is $15 million per person, set permanently by the 2025 tax law and indexed for inflation from 2027. A surviving spouse can add the deceased spouse’s unused exemption (portability) if it was claimed on an estate tax return.
Amounts above the exemption are taxed at an effective 40%.
Worked example
$18 million estate with $400,000 of debts and costs
- Taxable estate: $17.6 million.
- Over the $15 million exemption by $2.6 million.
- Estimated federal estate tax: $1.04 million.
Questions people ask
Do I need to worry about estate tax?
Federally, only if your estate plus lifetime taxable gifts exceeds $15 million ($30 million for a married couple using portability). State estate taxes start much lower.
Which states have an estate tax?
About a dozen states and DC, with exemptions from roughly $1 million to the federal level; a few states also tax inheritances.
What is the annual gift exclusion?
$19,000 per recipient in 2026. Gifts up to that amount don’t use any of your exemption.
How do I claim portability?
By filing an estate tax return (Form 706) for the first spouse to die, even if no tax is due.
Last reviewed October 2, 2026