The Estate and Gift Tax Calculator estimates US federal estate tax exposure the way the return itself is structured: build the taxable estate from the gross estate minus deductible debts, expenses, and charitable bequests, add back lifetime taxable gifts, apply the exemption for the year you select, and tax what remains above it at the model's flat 40% rate. It is a sizing tool for planning conversations, not a return preparer.
How It Works
The exemptions stored in the calculator are 13.61 million (2024), 15 million (2026) per person, doubled for a married couple electing portability in the model (27.22M, 30M respectively).
Parameters
| Input | Required | Meaning | |---|---|---| | Gross estate | Yes | Total value of assets at death | | Debts, expenses, charitable, other deductions | No | Amounts that reduce the taxable estate | | Lifetime taxable gifts | No | Prior gifts above the annual exclusions | | Marital status | Yes | Single or married exemption | | Exemption year | Yes | 2023 to 2026 schedule |
Worked example
A single decedent in 2026 leaves a gross estate of 1 million of combined debts, expenses, and charitable deductions, and 19 million; adding the gifts gives a cumulative base of 15 million; the remaining 2.4 million**, a 12% effective rate on the gross estate. Below the exemption the same machinery returns zero, which is the answer for the overwhelming majority of estates and the reason this tax is a planning problem for a small, wealthy minority.
The flat-rate simplification, stated plainly
The real federal computation applies graduated rates (18% rising to 40%) to the cumulative base and then subtracts a unified credit equal to the tax on the exemption amount, plus credits for gift tax previously paid. The net effect closely resembles taxing only the excess, mostly at the top 40% rate, which is what this model does directly. For estates modestly above the exemption the flat model can overstate the bill slightly, because the real system's credit arithmetic is a little gentler at the margin; for very large estates the two converge. Either way, the figure is an estimate for sizing, and any estate near the line deserves professional computation.
The levers planners actually pull
The example's structure shows them: deductions (charitable bequests reduce the base dollar for dollar and are the classic lever for charitably inclined estates), lifetime gifting (annual-exclusion gifts, currently per-donee each year, move assets and their future appreciation out without ever entering the taxable-gift column), exemption portability between spouses (which the married figures assume, and which requires a timely election on the first spouse's return), and valuation (illiquid assets like businesses and real estate are where legitimate appraisal work changes the base most). State estate and inheritance taxes are a separate layer the calculator does not model, with exemptions in some states far below the federal one, so a zero federal result does not promise a zero state result.
The 2026 number deserves attention
The stored schedule rises to $15 million per person in 2026, reflecting the legislation that made a higher exemption permanent rather than letting it fall back toward pre-2018 levels. Planning built on the old "sunset" assumption (rushed gifting to beat a falling exemption) should be revisited against this schedule; the calculator's year selector exists precisely so the same estate can be priced under each year's rules and the difference made visible.
Limitations
One flat federal computation for sizing only. It omits the graduated-rate and unified-credit mechanics, gift-tax credits, generation-skipping transfer tax, state estate and inheritance taxes, valuation discounts, special-use and deferral provisions for farms and closely held businesses, and every deadline and election. It is not tax or legal advice, and figures for future years follow the stored schedule, which legislation can change.
Frequently Asked Questions
Do most estates owe federal estate tax?
No. With exemptions at 15 million in 2026, well under 1% of estates owe anything. The calculator's zero result for typical estates is the correct and useful answer.
Why add lifetime gifts back in?
Because the system is cumulative: the exemption is consumed by taxable gifts during life first, and only what remains shelters the estate. Adding gifts back and applying the full exemption reproduces that ordering in one step.
Does the married figure require both spouses to die in the same year?
No. It models portability: the first spouse's unused exemption transfers to the survivor, so the combined shelter is available at the second death provided the election was made. The timing and paperwork are exactly the details an estate attorney should confirm.