Estate Tax Calculator 2025
Estimate the federal estate tax on an estate. The 2025 exemption is $13,990,000 — only estates above this threshold owe tax at the 40% rate.
Federal Estate Tax
$0.00
No tax — estate is below the $13.99M exemption
| Breakdown | Amount |
|---|---|
| Estate Value | $5,000,000.00 |
| Federal Exemption | $13,990,000.00 |
| Taxable Estate | $0.00 |
| Estate Tax | $0.00 |
| Effective Rate | 0.0% |
How Estate Tax Works
The federal estate tax is levied on the taxable estate — the total value of all assets minus debts, expenses, and the exemption. For 2025, the exemption is $13,990,000 per individual. Only the amount above this threshold is taxed at 40%. With this high exemption, fewer than 1 in 1,000 estates owe any federal estate tax.
Example: $20 million estate
Taxable amount: $20,000,000 - $13,990,000 = $6,010,000. Estate tax: $6,010,000 × 40% = $2,404,000. Effective rate on total estate: 12.0%.
Frequently Asked Questions
What is the estate tax exemption for 2025?
The federal estate tax exemption for 2025 is $13,990,000 per individual. Married couples can effectively shield $27,980,000 using portability of the unused exemption.
What is the estate tax rate?
The top federal estate tax rate is 40%. The estate tax only applies to the portion of the estate exceeding the exemption amount.
Will the exemption decrease?
The current high exemption is scheduled to sunset after 2025, potentially reverting to approximately $7 million (adjusted for inflation) in 2026. Congress may act to extend or modify this.
Do most estates pay estate tax?
No. With the $13.99M exemption, fewer than 0.1% of estates owe federal estate tax. Only very large estates are affected.
Is there a state estate tax too?
Some states have their own estate or inheritance taxes with lower exemptions. States like Massachusetts and Oregon have exemptions as low as $1 million.
Important Disclaimer
The figures provided by this calculator are estimates based on the information you enter and published rates at the time of writing. They do not constitute financial, tax, or legal advice, and we accept no liability for decisions made on the basis of these estimates. Your actual liability may differ depending on your individual circumstances, applicable reliefs, and any changes to rates or legislation. Always consult a qualified professional or check the latest IRS guidance at irs.gov before making financial decisions.
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