USA Estate Tax Calculator: Instantly Estimate Federal & State Estate Tax
The USA Estate Tax Calculator helps you estimate your federal and state estate tax exposure under the $15 million exemption. Model DSUE/portability, lifetime gifting, charitable deductions, and state rules in one step. See your projected liability and plan ahead with the latest 2026 regulations.
Estate Tax Calculator
Why the $15M Exemption Changes Everything for Estate Planning in 2026
The One Big Beautiful Bill Act raised the federal estate tax exemption to $15 million per person for 2026, indexed to inflation in later years. With rising home values and fast-growing business equity, more Americans are approaching these limits. However, federal rules are only part of the story: many states have their own estate or inheritance taxes with lower thresholds. This page explains the law and lets you use the 2026 Estate Tax Calculator for instant estimates.
How to Use This Calculator for Real-World Scenarios
- Enter your gross estate (property, financial, business, insurance to estate).
- Include all lifetime taxable gifts (not annual exclusion gifts) to reduce your available exemption.
- Subtract charitable bequests for deductible contributions.
- If your spouse passed and Form 706 was filed, enter DSUE to use any untouched exclusion.
- Check your state for separate estate/inheritance tax on the same estate!
Federal Estate Tax vs. State Estate and Inheritance Taxes
Even if your estate qualifies for a $0 federal tax, states like New York and Massachusetts can tax estates below $3 million.
- Federal Exemption: $15,000,000 (2026, per person), IRS source.
- NY Exemption: ~$6.94M, rate up to 16%.
- Massachusetts Exemption: $2M in 2026.
- Other states: Use ACTEC’s state estate tax chart.
Estate Tax Planning Moves for 2026 and Beyond
- Portability (DSUE): File Form 706 after first spouse’s death to preserve and transfer unused exemption.
- Trusts for Reduction: Dynasty, GRATs, and QPRTs can shield assets and allow generation-skipping.
- Charitable Giving: Use direct bequests or charitable trusts for both legacy and tax advantage.
- Gifting Strategies: Annual exclusion gifting (IRS rules) does not erode your lifetime exemption.
- Always check your state rules as they may change annually and differ from federal law.
Best Practices: How to Lower or Avoid Estate Tax
- Start early—establish trusts and planned giving years before transfer/death.
- Track all gifting and keep documents for tax basis step-up and reporting.
- Coordinate an updated will and beneficiary designations—state rules can cause probate surprises!
- Work with both a tax professional and an estate planning attorney for advanced strategies.
- Review your plan and this calculator every 2-3 years or after any major life/asset change.
Resources for 2026 Estate Tax Planning
Estate Tax Calculator 2026 – Frequently Asked Questions
Is the $15M exemption permanent?
The new $15,000,000 exemption is set for 2026 and indexed for inflation, but Congress can change it with new legislation. Historically, major changes occur every 10-12 years.
Do I have to worry about state estate or inheritance tax?
Yes. Several states have lower exemptions or even inheritance taxes regardless of federal law. Always check the calculator’s state notes and reference the ACTEC chart linked above.
Will my spouse get the same exemption?
Only if you file Form 706 for the first spouse’s estate (even if there’s no federal tax); otherwise, unused exemption is lost.
Does charitable giving help?
Yes! Charitable bequests (direct or through trusts) are deductible from your taxable estate—an established way to lower exposure to the estate tax.
Are life insurance proceeds taxed?
Not if paid directly to beneficiaries, but if they’re payable to the estate or used as collateral, they’re included in your gross estate and taxed if above exemption.
How do I document the results for my advisor?
Use the report download (calculator output area, PDF or TXT) and bring the summary to your estate planning meetings.