Estimate federal estate tax on an inheritance: enter the estate value, debts, exemption, and top rate to see the taxable estate, estimated tax, and the net amount passing to heirs.
Federal estate tax estimate
The federal estate tax applies only to estates that exceed a large lifetime exemption. For 2025 the exemption is $13.99 million per individual (double for married couples using portability), and the top rate is 40%. Only the portion of the taxable estate above the exemption is taxed. So a $20 million estate with the $13.99M exemption has roughly $6.01M taxable, producing about $2.4M in estate tax at 40%.
This calculator gives a simplified estimate using a single top rate applied to the amount above the exemption, after subtracting debts and expenses. The real federal estate tax uses a graduated schedule that reaches 40%, and some states levy their own estate or inheritance taxes with much lower exemptions. The federal exemption is also scheduled to drop after 2025 under current law, so verify the figure for the year in question. Always consult an estate attorney or tax professional for actual filings.
2025 federal exemption: $13.99M per person. Estates below this owe no federal estate tax. Married couples can shield roughly double via portability.
The federal estate tax tops out at 40% on amounts well above the exemption. This tool applies your chosen top rate to the taxable amount for a quick estimate.
The gross estate includes real estate, investments, cash, business interests, and life insurance you own. Debts, expenses, and charitable/spousal transfers reduce it.
Several states impose their own estate or inheritance taxes with far lower exemptions (some under $2M). Those are separate from federal and not included here.