Estate Tax Calculator - Calculate Federal Estate Tax
Free estate tax calculator to determine federal estate tax liability with 2025 exemptions and calculate your net estate value
Estate Tax Calculator
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What is an Estate Tax Calculator?
An Estate Tax Calculator is a free financial tool that helps you estimate the federal estate tax liability on your estate. It calculates the tax based on your total estate value, applicable exemptions, and allowable deductions under 2025 tax law.
This calculator helps with:
- Estate Planning - Estimate potential tax liability on your estate
- Tax Optimization - Identify opportunities to reduce estate taxes
- Legacy Planning - Calculate how much wealth will pass to heirs
- Charitable Giving - See the tax benefits of charitable bequests
Marriage Tax Calculator - Determine marriage tax penalty or bonus for couples
Inheritance Calculator - Calculate inheritance distribution and taxes
Retirement Calculator - Plan retirement savings and estate preservation
Investment Calculator - Project long-term investment growth for estate planning
Tax Bracket Calculator - Understand your current tax brackets and planning opportunities
How the Estate Tax Calculator Works
The calculator uses the 2025 federal estate tax rates and exemptions:
Federal Exemption (2025):
Single: $13,610,000
Married (with portability): $27,220,000
Estate Tax Rate:
40% on amounts exceeding the exemption
Calculation steps:
- Gross Estate = Total Estate Value
- Total Deductions = Debts + Expenses + Charitable Bequests
- Taxable Estate = Gross Estate - Total Deductions
- Estate Tax = (Taxable Estate - Exemption) × 40%
- Net Estate = Taxable Estate - Estate Tax
Key Estate Tax Concepts
Federal Exemption
The amount that can pass tax-free to heirs. In 2025, it's $13,610,000 per individual or $27,220,000 for married couples.
Portability
Allows a surviving spouse to use the deceased spouse's unused exemption, effectively doubling the tax-free amount.
Taxable Estate
The value of your estate after deducting debts, expenses, and charitable bequests. Only amounts above the exemption are taxed.
Charitable Deduction
Gifts to qualified charities are fully deductible from your estate, reducing the taxable amount and supporting causes you care about.
How to Use This Calculator
Enter Estate Value
Input your total estate value including all assets (e.g., $20,000,000)
Select Status
Choose single or married to apply the correct exemption amount
Add Deductions
Enter debts, expenses, and any charitable bequests
View Results
See your estate tax, net estate, and effective tax rate instantly
Benefits of Using This Calculator
- • Accurate Estimates: Get instant calculations based on current 2025 federal estate tax rates and exemptions.
- • Plan Ahead: Understand your potential estate tax liability and plan strategies to minimize it.
- • Optimize Deductions: See how charitable giving and other deductions reduce your tax burden.
- • Protect Your Legacy: Calculate how much of your estate will pass to heirs after taxes.
- • Compare Scenarios: Test different marital statuses and deduction amounts to find the best strategy.
Factors That Affect Estate Taxes
1. Total Estate Value
The combined value of all assets including real estate, investments, business interests, life insurance, and personal property.
2. Marital Status & Portability
Married couples can use portability to combine exemptions, potentially sheltering up to $27,220,000 from estate taxes.
3. Deductible Expenses
Funeral costs, estate administration fees, debts, and mortgages reduce your taxable estate, lowering the overall tax liability.
4. Charitable Contributions
Donations to qualified charities are fully deductible, providing both tax benefits and philanthropic impact.
Frequently Asked Questions (FAQ)
Q: What is the federal estate tax exemption for 2025?
A: The federal estate tax exemption for 2025 is $13,610,000 per individual. Married couples can combine their exemptions through portability, allowing up to $27,220,000 to pass tax-free to heirs.
Q: Who has to pay estate taxes?
A: Only estates exceeding the federal exemption ($13,610,000 for individuals, $27,220,000 for married couples in 2025) are subject to federal estate tax. The tax rate is 40% on amounts above the exemption.
Q: What is portability in estate tax planning?
A: Portability allows a surviving spouse to use any unused portion of their deceased spouse's estate tax exemption. This effectively doubles the exemption to $27,220,000 for married couples when properly structured.
Q: How can I reduce my estate tax liability?
A: Common strategies include charitable bequests, lifetime gifting, establishing trusts, life insurance planning, and maximizing deductions for debts and expenses. Consult with an estate planning attorney for personalized advice.