Estate & Gift Tax Calculator
Estimate your federal and state estate tax, and track your lifetime gift exemption.
Estate Information
Estimated Estate Tax
$0
Effective rate: 0% · Net to heirs: $5,000,000
Federal Tax
$0
State Tax
$0
Exemption Left
$8,610,000
Estate Tax Breakdown
Gift Tax Summary
State: NY
NY has a state estate/inheritance tax, but your estate is below the $6,940,000 exemption.
Disclaimer
- Based on 2026 projected federal estate tax exemption ($13.61M) with TCJA extension.
- State estate tax calculations are simplified — actual rates are graduated.
- Estate planning involves complex legal considerations — consult an estate attorney.
- Married couples should consider portability election and trust strategies.
Federal Estate Tax 2026: What You Need to Know
The federal estate tax applies to estates exceeding the lifetime exemption amount — $13.61 million per individual in 2026 (projected), or $27.22 million for married couples using portability. The tax rate is a flat 40% on the amount above the exemption. Only about 0.1% of estates owe any federal estate tax, but for those that do, the liability can be substantial.
The TCJA Sunset Risk
The current high exemption is the result of the Tax Cuts and Jobs Act of 2017, which roughly doubled the exemption amount. Without congressional action, the exemption is scheduled to revert to approximately $7 million (inflation-adjusted) after 2025 or when TCJA provisions expire. This would expose many more estates to federal taxation. Estate planning professionals recommend acting while the high exemption is available.
Annual Gift Tax Exclusion
| Year | Annual Exclusion | Lifetime Exemption |
|---|---|---|
| 2024 | $18,000 | $13,610,000 |
| 2025 | $19,000 | $13,990,000 (est.) |
| 2026 | $19,000 | $13,610,000 (projected) |
You can give up to $19,000 per recipient per year (2026) without filing a gift tax return or using any lifetime exemption. A married couple can jointly gift $38,000 per recipient annually. Gifts above the annual exclusion reduce your lifetime exemption dollar-for-dollar.
States With Estate or Inheritance Tax
Thirteen states and DC have their own estate tax, often with much lower exemptions than the federal level. Massachusetts and Oregon have exemptions as low as $1-2 million. Six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania) impose an inheritance tax on recipients. Maryland is the only state with both an estate tax and an inheritance tax.
IRS — Estate Tax Information→Frequently Asked Questions
What's the difference between estate tax and inheritance tax?
Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the recipients on what they receive. The federal government only has an estate tax. Some states have inheritance taxes with rates that vary based on the beneficiary's relationship to the deceased (spouses and children often pay little or nothing).
Do I need a will or trust?
Everyone with assets should have at minimum a will. A revocable living trust avoids probate, provides privacy, and can reduce estate taxes through AB trust planning for married couples. Irrevocable trusts can remove assets from your taxable estate entirely.
Can I gift my house to avoid estate tax?
You can, but you lose the stepped-up cost basis at death, which means your heirs would pay capital gains tax on the full appreciation when they sell. Often it is more tax-efficient to leave the home through the estate, where the basis resets to fair market value at death.
Calculate your current financial position with our Net Worth Calculator or estimate your federal income tax.