A worked example
A $20 million gross estate with $200,000 in debts and expenses leaves a taxable estate of $19.8 million. After the $15 million exemption, $4.8 million is taxed at 40% — about $1.92 million in federal estate tax.
Frequently asked questions
What changed for 2026?
The One Big Beautiful Bill Act, signed July 2025, permanently raised the exemption to $15 million per person starting in 2026 (up from $13.99 million in 2025), removing a scheduled reversion to roughly $7 million that was set to happen under prior law.
What is portability?
If a spouse dies without using their full exemption, the surviving spouse can elect to add the unused portion to their own — potentially shielding up to $30 million combined. This requires filing an estate tax return (Form 706) even if no tax is owed, specifically to preserve the unused exemption.
Does this exemption protect against state estate taxes too?
No — about a dozen states impose their own separate estate or inheritance tax, often with exemptions far lower than the federal $15 million figure. This calculator covers federal tax only.
This calculator provides estimates for general informational purposes only and is not legal or tax advice. Estate planning involves many factors beyond federal tax — consult an estate planning attorney.