Estate Tax Calculator 2025 β Federal Estate Tax with $13.61M Exemption
Calculate federal estate tax for 2025. Uses the $13,610,000 exemption and 40% rate. See if your estate owes estate tax and by how much.
$
Total value of all assets at death $
Mortgages, loans, funeral, admin costs $
Assets passing to US citizen spouse (unlimited) $
Bequests to qualified charities $
Lifetime taxable gifts already made (reduces exemption) $
Portability from deceased spouse (requires timely election) $0
Federal Estate Tax
$0
Taxable Estate
$0
Exemption Available
$0
Net to Heirs
Estate Tax Calculation
How to Use This Estate Tax Calculator
Enter your gross estate value (all assets at fair market value), then subtract allowable deductions: debts and expenses, the marital deduction for assets passing to a spouse, and charitable deductions. The remaining taxable estate is compared against your available exemption ($13,610,000 in 2025, reduced by any prior taxable gifts).
The Formula
Adjusted Gross Estate = Gross Estate β Debts & Expenses
Taxable Estate = Adjusted Gross Estate β Marital Deduction β Charitable Deduction
Exemption = $13,610,000 + Portability β Prior Taxable Gifts
Estate Tax = MAX(0, (Taxable Estate β Exemption) Γ 40%)
Taxable Estate = Adjusted Gross Estate β Marital Deduction β Charitable Deduction
Exemption = $13,610,000 + Portability β Prior Taxable Gifts
Estate Tax = MAX(0, (Taxable Estate β Exemption) Γ 40%)
Example
Estate of $15,000,000 with $200,000 debts, no marital/charitable deductions:
Adjusted gross estate: $14,800,000
Exemption: $13,610,000
Taxable above exemption: $14,800,000 β $13,610,000 = $1,190,000
Federal estate tax: $1,190,000 Γ 40% = $476,000
Net to heirs: $14,800,000 β $476,000 = $14,324,000
Adjusted gross estate: $14,800,000
Exemption: $13,610,000
Taxable above exemption: $14,800,000 β $13,610,000 = $1,190,000
Federal estate tax: $1,190,000 Γ 40% = $476,000
Net to heirs: $14,800,000 β $476,000 = $14,324,000
Extended
Estate Reduction Strategies
Analyze gifting, charitable giving, and trust strategies to reduce your estate tax exposure
Analyze strategies to reduce your estate tax exposure based on your current estate value.
Estate Reduction Strategy Analysis
| Strategy | Annual Benefit | 10-Year Benefit | Estate Tax Reduction |
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2025 Sunset Warning: The current $13.61M exemption is scheduled to revert to approximately $7M per person after December 31, 2025. Estates between $7Mβ$13.6M should act before year-end 2025 to use the current higher exemption.
Frequently Asked Questions
What is the federal estate tax exemption for 2025?
The 2025 federal estate tax exemption is $13,610,000 per person (indexed for inflation). A married couple can effectively shield up to $27,220,000 using portability β the surviving spouse can use the deceased spouse's unused exemption. This exemption is scheduled to sunset after 2025, potentially dropping to around $7,000,000 in 2026 unless Congress acts.
What is the federal estate tax rate?
The federal estate tax rate is a flat 40% on the taxable estate above the exemption amount. For example, if your estate is $15,000,000 and the exemption is $13,610,000, the taxable estate is $1,390,000 and the estate tax would be $556,000 (40% Γ $1,390,000).
What assets are included in a taxable estate?
Your taxable estate generally includes everything you own at death: real estate, bank and investment accounts, retirement accounts (IRAs, 401ks), business interests, life insurance proceeds (if you are the owner), vehicles, jewelry, and any other property. Certain deductions are available including the unlimited marital deduction, charitable deductions, debts, funeral expenses, and estate administration costs.
What is the unlimited marital deduction?
You can leave any amount of assets to a US citizen spouse completely free of estate tax using the unlimited marital deduction. However, the estate tax is deferred, not eliminated β the surviving spouse's estate may face the tax when they die. Estate planning often combines the marital deduction with credit shelter trusts to maximize both spouses' exemptions.
When is the estate tax sunset and what happens?
The current elevated estate tax exemption ($13,610,000 in 2025) was established by the Tax Cuts and Jobs Act of 2017 and is scheduled to sunset on December 31, 2025. Without Congressional action, the exemption would revert to pre-TCJA levels, adjusted for inflation β approximately $7,000,000 per person in 2026. This could significantly affect estate planning strategies.