Federal Estate Tax Calculator
The federal exemption is $15M per person in 2026 (made permanent by OBBBA 2025), with a top rate of 40%. The marital deduction to a U.S.-citizen spouse is unlimited and defers tax. Use the portability field to add a deceased spouse’s unused exclusion.
Planning for next year? 2027 is the first year the $15M exemption is inflation-indexed under OBBBA, and the IRS has not published the indexed figure yet. See what is confirmed for 2027 and what is still pending, including federal tax across the plausible indexed range.
Federal Estate Tax Calculator — Calculation Summary
| Input / parameter | Value |
|---|---|
| Taxable estate | $20,000,000 |
| Portability add-on (DSUE) | $0 |
| Result | |
| Effective exemption | $15,000,000 |
| Taxable amount (over exemption) | $5,000,000 |
| Federal estate tax | $1,945,800 |
| Effective rate on estate | 9.7% |
Source: IRC § 2010; IRS Revenue Procedure 2025-32 (2026 brackets).
This is an informal planning estimate only, not legal or tax advice. Confirm all figures with the IRS, your state Department of Revenue, or a licensed estate attorney or CPA before relying on them.
Top federal rate 40% above the exemption. Marital deduction to a U.S.-citizen spouse is unlimited and defers tax. GST exemption is also $15M (non-portable). Figures use the exact IRS graduated brackets.
2026 Federal Estate & Gift Numbers — at a glance
Federal basic exclusion amount history
Per-person exclusion for estates of decedents dying in that year (IRS Form 706 filing-threshold table).
| Year of death | Exemption | Note |
|---|---|---|
| 2011 | $5,000,000 | Post-2010 law levels |
| 2018 | $11,180,000 | TCJA doubled the exemption |
| 2020 | $11,580,000 | Inflation-adjusted |
| 2022 | $12,060,000 | Inflation-adjusted |
| 2024 | $13,610,000 | Inflation-adjusted |
| 2025 | $13,990,000 | Last year before OBBBA |
| 2026 | $15,000,000 | OBBBA (Pub. L. 119-21): permanent, indexed from 2027 |
Source: IRS Form 706 filing-threshold table and Rev. Proc. 2025-32 (irs.gov). Without OBBBA, the exemption was scheduled to fall to roughly $7M in 2026 — a common planning trigger in 2024–2025 that no longer applies.
Project the exemption for your planning year
From 2027 the basic exclusion amount is inflation-indexed (OBBBA). This is a planning estimate using a 2.5%/yr CPI assumption — the IRS publishes the actual figure each year.
Projected 2035 exclusion: $18,732,945 per person ($37,465,890 married with portability), assuming 2.5% inflation from the 2026 base of $15,000,000. This is 9 years out — the IRS figure will differ.
Planning implication: if your estate is comfortably below this projection, federal estate tax is unlikely to be your binding constraint — state estate taxes (often far lower thresholds, e.g., Oregon $1M, Massachusetts $2M) usually matter first.
Informal estimate only — not legal or tax advice. Figures cite federal statute (IRC § 2010, OBBBA 2025) and each state's Department of Revenue. Tax laws and exemption amounts change yearly; confirm the current rule with the IRS, your state agency, or a licensed estate attorney or CPA before relying on any number.
How this calculator works
Calculation method & sources
- Federal exemption: IRC § 2010(c)(3) and IRS Revenue Procedure 2025-32 set the 2026 basic exclusion amount at $15,000,000 per person. The One Big Beautiful Bill Act (OBBBA 2025, Pub. L. 119-21) made the higher exemption permanent and indexed it for inflation starting in 2027.
- Rate schedule: IRC § 2001 provides the graduated estate tax brackets from 18% to a top rate of 40% on taxable amounts over $1,000,000.
- Portability (DSUE): IRC § 2010(c)(5). A surviving spouse can elect to use the deceased spouse’s unused exclusion by filing IRS Form 706 within 9 months of death (plus a possible 6-month extension).
- Marital deduction: IRC § 2056 allows an unlimited deduction for transfers to a surviving spouse who is a U.S. citizen. It defers tax until the second death rather than eliminating it.
How to interpret your federal estate tax result
- A result of $0 means the taxable estate is at or below the effective exemption you entered (including any portability add-on).
- The “taxable amount over exemption” is the portion actually exposed to the graduated brackets.
- Portability only helps if the estate of the first spouse timely files Form 706 to elect it; it is not automatic.
- The “effective rate on estate” is the tax divided by the full estate — it is usually far below the 40% top marginal rate.
- This calculator covers federal tax only. State estate or inheritance taxes are calculated separately in our By-State and Inheritance tools.
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