Educational estimate using 2026 figures. Not tax or legal advice.
We add prior taxable gifts to your gross estate, subtract marital, charitable, debt and expense deductions for your taxable estate, apply the $15M federal exemption at 40%, then add any state estate tax based on your state's exemption and rate.
Plan your estate with our free federal and state tax tools.
Estate tax is only charged on the part of an estate above the exemption — not the whole thing. For 2026 the federal exemption is $15 million per person, and only the excess is taxed, at rates topping out at 40%. Married couples can effectively shield $30 million by combining exemptions through portability.
This is where families get caught off guard. A dozen states plus Washington, D.C. levy their own estate tax — and several start far below the federal line. Massachusetts and Oregon tax estates over just $1–2 million. So an estate that owes the IRS nothing can still face a sizable state bill.
Lifetime gifting also helps — see the gift tax calculator for how the annual exclusion and lifetime exemption interact.
$15 million per person (about $30 million for a married couple), made permanent under 2025 tax law.
Up to 40% on the amount of the taxable estate above the exemption.
Twelve states plus Washington, D.C. — including MA, OR, WA, NY, IL and MN — often with much lower exemptions.
The unlimited marital deduction, charitable bequests, and debts and administration expenses.
No — it’s an educational estimate. Consult an estate attorney or tax professional.