🏛️ Estate Tax Calculator
Calculate federal estate tax liability with 2024 exemption amounts
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📚 Understanding Federal Estate Tax
What is Estate Tax?
A tax on the transfer of the estate of a deceased person. Only applies to estates exceeding the exemption amount.
2024 Exemption
$13.61 million per individual. Married couples can combine exemptions for $27.22 million total (portability).
Tax Rate
Estates above the exemption are taxed at 40%.
Unified Credit
Estate and gift taxes share a unified exemption. Lifetime gifts reduce the available estate tax exemption.
Marital Deduction
Unlimited deduction for assets left to a surviving U.S. citizen spouse.
Charitable Deduction
Unlimited deduction for assets left to qualified charitable organizations.
State Estate Taxes
Some states have their own estate or inheritance taxes with lower exemptions.
Future Changes
The current high exemption is set to sunset after 2025, potentially reverting to ~$7 million (adjusted for inflation).
❓ Frequently Asked Questions
What is the federal estate tax exemption for 2024?
The federal estate tax exemption for 2024 is $13.61 million per individual. Married couples can combine their exemptions for a total of $27.22 million through portability. Only estates exceeding this amount are subject to federal estate tax.
How is estate tax calculated?
Estate tax is calculated on the taxable estate (gross estate minus deductions) that exceeds the exemption amount. The tax rate is 40% on the amount above the exemption. For example, if your taxable estate is $15 million, only $1.39 million ($15M - $13.61M) would be taxed at 40%, resulting in $556,000 in estate tax.
What deductions can reduce my taxable estate?
Common deductions include: debts and mortgages, funeral expenses, estate administration costs, charitable bequests (unlimited), and the marital deduction for assets left to a surviving spouse (unlimited for U.S. citizens). These deductions reduce your gross estate to arrive at the taxable estate.
Do lifetime gifts affect my estate tax exemption?
Yes. Estate and gift taxes share a unified exemption. If you make taxable gifts during your lifetime that exceed the annual exclusion ($18,000 per recipient in 2024), those gifts reduce your available estate tax exemption. For example, if you've made $2 million in taxable gifts, your estate exemption would be reduced to $11.61 million.
What is portability for married couples?
Portability allows a surviving spouse to use any unused portion of their deceased spouse's estate tax exemption. This effectively gives married couples a combined exemption of $27.22 million in 2024. However, portability must be elected on a timely filed estate tax return (Form 706) after the first spouse's death.
Are there state estate taxes in addition to federal?
Yes, some states impose their own estate or inheritance taxes with exemptions often much lower than the federal exemption. States with estate taxes include Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia. Check your state's specific rules.
What happens to the exemption after 2025?
Under current law, the increased exemption amount (roughly doubled by the Tax Cuts and Jobs Act of 2017) is set to sunset after December 31, 2025. Without new legislation, the exemption would revert to approximately $7 million per person (adjusted for inflation). This makes estate planning particularly important for those with estates near these thresholds.