Estate Tax Calculator

Calculate federal and state estate taxes with current 2025 exemptions and rates. Get detailed tax analysis and estate planning recommendations with comprehensive breakdowns and strategies.

Estate Tax Calculator

Calculate federal and state estate taxes with current exemptions and rates for United States

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Gross Estate Value (USD)

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Marital Deduction (USD)

Charitable Deduction (USD)

Debts & Expenses (USD)

Prior Taxable Gifts (USD)

Understanding Estate Taxes

Quick Answer: In 2025, estates valued over $13.61 million are subject to federal estate tax, with rates from 18% to 40%. For example, a $20 million estate would owe approximately $2.56 million in federal estate tax after the exemption.

Estate planning strategies like annual gifting, charitable deductions, and trust planning can significantly reduce or eliminate estate taxes. Only about 0.2% of estates actually pay federal estate tax due to the high exemption threshold.

2025 Estate Tax Rates & Exemptions

Current federal estate tax structure

Federal Exemptions

Individual Exemption

$13,610,000

Per person in 2025

Married Couple

$27,220,000

Combined exemption

Tax Rates

$0 - $10,00018%

$10,001 - $20,00020%

$20,001 - $40,00022%

$40,001 - $60,00024%

$1,000,001+40%

State Estate Taxes (2025)

States with estate or inheritance taxes

Connecticut

Exemption: $12.92 million

Rates: 7.8% - 12%

Massachusetts

Exemption: $2 million

Rates: 0.8% - 16%

New York

Exemption: $6.94 million

Rates: 3.06% - 16%

Washington

Exemption: $2.193 million

Rates: 10% - 20%

Oregon

Exemption: $1 million

Rates: 10% - 16%

Minnesota

Exemption: $3 million

Rates: 13% - 16%

*Other states with estate/inheritance taxes: Hawaii, Illinois, Maine, Maryland, Rhode Island, Vermont, and Washington D.C.

Estate Tax Reduction Strategies

Common approaches to minimize estate taxes

Gifting Strategies

• Annual Exclusion Gifts: $18,000 per recipient (2025)
• Lifetime Exemption Gifts: Use exemption during lifetime
• Gift Tax Valuation Discounts: Minority interests, marketability
• Grantor Retained Annuity Trusts (GRATs): Transfer appreciation
• Sales to Intentionally Defective Grantor Trusts: Freeze values
• Charitable Lead Annuity Trusts: Reduce transfer costs

Advanced Planning

• Family Limited Partnerships: Valuation discounts
• Qualified Personal Residence Trusts: Remove residence appreciation
• Charitable Remainder Trusts: Income + tax deduction
• Generation-Skipping Trusts: Benefit multiple generations
• Life Insurance Trusts: Remove proceeds from estate
• Business Succession Planning: Valuation discounts

Estate Tax Examples

How estate taxes apply to different scenarios

$10 Million Estate

Gross Estate: $10,000,000

Exemption: $13,610,000

Federal Tax: $0

Below exemption threshold

$20 Million Estate

Gross Estate: $20,000,000

Taxable: $6,390,000

Federal Tax: $2,556,000

12.8% effective rate

$50 Million Estate

Gross Estate: $50,000,000

Taxable: $36,390,000

Federal Tax: $14,556,000

29.1% effective rate

Estate Tax Deadlines & Requirements

Key dates and filing requirements

Filing Requirements

• Form 706 Required: Gross estate + adjusted taxable gifts > $13.61M
• Due Date: 9 months after death
• Extension Available: Additional 6 months with Form 4768
• Payment Due: With return (unless installment election)
• Installment Payments: Available for business/farm estates
• Professional Help: Strongly recommended for complex estates

Valuation Requirements

• Valuation Date: Date of death or alternate valuation date
• Professional Appraisals: Required for certain assets
• Business Interests: Fair market value determination
• Marketable Securities: Mean between high/low on valuation date
• Real Estate: Comparable sales or income approach
• Personal Property: Fair market value at death

Frequently Asked Questions

Common questions about estate taxes

What is the federal estate tax exemption for 2025?

The federal estate tax exemption for 2025 is $13.61 million per individual ($27.22 million for married couples). This means estates valued below these thresholds are not subject to federal estate tax. The exemption is indexed for inflation annually.

What is the current federal estate tax rate?

Federal estate tax rates range from 18% to 40% on a progressive scale. The top rate of 40% applies to taxable amounts over $1 million after applying the lifetime exemption. Most estates subject to tax pay the maximum 40% rate.

Do all states have estate taxes?

No, only 12 states and Washington D.C. have state estate taxes as of 2025. These include Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Exemption amounts vary by state.

How do lifetime gifts affect estate taxes?

Lifetime taxable gifts (those exceeding the annual exclusion) use up your lifetime estate tax exemption. The 2025 annual gift exclusion is $18,000 per recipient. Gifts above this amount reduce your available estate tax exemption dollar-for-dollar.

What deductions are available for estate taxes?

Major estate tax deductions include unlimited marital deduction (for U.S. citizen spouses), unlimited charitable deduction, debts of the decedent, funeral expenses, and estate administration costs. These deductions can significantly reduce the taxable estate.

When is estate tax due?

Estate tax returns (Form 706) are due 9 months after death, with a possible 6-month extension. Estate taxes are due at the same time unless an election is made to pay in installments (available for certain business or farm estates).

How can I reduce estate taxes?

Common strategies include annual gifting within exclusion limits, charitable giving, establishing trusts (GRATs, CRTs, QPRTs), life insurance planning, family limited partnerships, and business succession planning. Professional advice is essential for complex strategies.

Is estate planning only for wealthy families?

While estate taxes primarily affect high-net-worth families, estate planning is important for everyone. It involves wills, healthcare directives, power of attorney, beneficiary designations, and asset protection strategies that benefit families at all income levels.