2025 Estate Tax Calculator

Q: What is the difference between estate tax and inheritance tax?

Estate tax is paid by the deceased person's estate before any assets are distributed to heirs. It's a tax on the total value of the estate. Inheritance tax, on the other hand, is paid by the person who inherits money or property. The federal government does not have an inheritance tax, but a few states do (e.g., Maryland, New Jersey, Pennsylvania). This calculator focuses on estate tax.

Q: What is Portability or DSUE?

Portability allows a surviving spouse to use the Deceased Spousal Unused Exclusion (DSUE) from their late spouse. For example, if the 2025 exemption is $14.05 million and the first spouse to die only used $4.05 million, the remaining $10 million can be transferred ('ported') to the surviving spouse. This gives the surviving spouse a total exemption of $24.05 million. To claim DSUE, an estate tax return (Form 706) must be filed for the first spouse's estate, even if no tax is due.

Instantly estimate your potential federal and state estate tax liability. See how the 2026 "sunset provision" could impact your estate and plan with confidence using our free, up-to-date tool.

1. Gross Estate Value

Total Value of All Assets

Total Deductions

2. Lifetime Taxable Adjustments

Lifetime Taxable Gifts

Portability (DSUE)

3. State Estate Tax (if applicable)

State of Residence

Plan Your Legacy: A Guide to Estate Tax

An estate tax is a levy on the transfer of a person's assets after their death. It's calculated on the "taxable estate"—the gross estate value minus specific deductions. While the federal government sets a high bar for this tax, twelve states and the District of Columbia have their own, often with much lower exemptions. This calculator empowers you to estimate both potential liabilities using projected 2025 figures, giving you a clear picture for your financial planning.

How to Use This Estate Tax Calculator

Get a clear estimate in four simple steps:

Step 1: Gross Estate Value: Enter the total fair market value of all your assets. This includes cash, stocks, bonds, real estate, business interests, and death benefits from life insurance policies you own.
Step 2: Total Deductions: Input your estate's debts, mortgages, funeral expenses, administrative costs, and any charitable contributions.
Step 3: Lifetime Adjustments: Add any taxable gifts made during your lifetime that exceeded the annual exclusion limit. If you are a surviving spouse, also enter the Deceased Spousal Unused Exclusion (DSUE) amount here.
Step 4: State of Residence: Select your state to factor in any applicable state-level estate tax, which can apply even if you are exempt from federal tax.

Frequently Asked Questions (FAQ)

What is the 2026 Estate Tax "Sunset"?

The Tax Cuts and Jobs Act of 2017 nearly doubled the federal estate tax exemption. This provision is scheduled to "sunset" or expire on January 1, 2026. If no new legislation is passed, the exemption will revert to its pre-2018 level, which is estimated to be around $7 million after inflation adjustments. This change will make many more estates subject to the 40% federal estate tax.

What is the difference between estate tax and inheritance tax?

Estate tax is paid by the deceased person's estate before any assets are distributed to heirs. It's a tax on the total value of the estate. Inheritance tax, on the other hand, is paid by the person who inherits money or property. The federal government does not have an inheritance tax, but a few states do (e.g., Maryland, New Jersey, Pennsylvania). This calculator focuses on estate tax.

What is Portability or DSUE?

Portability allows a surviving spouse to use the Deceased Spousal Unused Exclusion (DSUE) from their late spouse. For example, if the 2025 exemption is $14.05 million and the first spouse to die only used $4.05 million, the remaining $10 million can be transferred ("ported") to the surviving spouse. This gives the surviving spouse a total exemption of $24.05 million. To claim DSUE, an estate tax return (Form 706) must be filed for the first spouse's estate, even if no tax is due.

Does my state have an estate tax?

As of 2025, twelve states and the District of Columbia impose their own estate tax: Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, and Vermont. These state-level taxes often have much lower exemption amounts than the federal government, meaning your estate could owe state tax even if it is exempt from federal tax. Our calculator includes the latest data for all applicable states.

How can I plan for the 2026 sunset provision?

Proactive planning is key. Strategies include making lifetime gifts to use your high exemption now (the IRS has confirmed there will be no "clawback"), establishing trusts like Spousal Lifetime Access Trusts (SLATs) or Irrevocable Life Insurance Trusts (ILITs), and making charitable contributions. It is highly recommended to consult with a qualified estate planning attorney or financial advisor to discuss strategies tailored to your specific situation.