Understanding the estate tax calculator
The federal estate tax applies only to the portion of an estate above a very high exemption $13.61 million per person in 2024 so it touches only a small fraction of estates. Above that threshold the marginal rate reaches 40%. Married couples can effectively double the exemption through portability, passing the unused portion to the surviving spouse.
Because the exemption is scheduled to fall sharply after 2025 unless Congress acts, estate planning has grown more urgent for wealthier families. This estimate covers the federal tax with a flat top rate; the real calculation is graduated, and several states levy their own estate or inheritance taxes with much lower thresholds. Trusts, gifting, and charitable bequests are common tools to reduce a taxable estate.
Results are estimates for education only and are not financial advice.