Assumptions
- 2026 estimate for estates of US citizens or residents. The gross estate must already include required Schedule G additions such as applicable three-year gift taxes.
- Prior gift tax payable is the recomputed Form 706 worksheet amount, not necessarily historical cash payments; 0 assumes none. Adjusted gifts must not duplicate assets in the gross estate.
- Special exclusion history, pre-1977 exemptions and foreign/prior-transfer tax credits are outside this estimate.
- Federal tax only. State estate and inheritance taxes are not modelled and start at much lower thresholds.
- The unlimited marital deduction assumes a surviving spouse who is a US citizen. A non-citizen spouse generally needs a QDOT.
- Valuation, the alternate valuation date, special use valuation and generation-skipping transfer tax are outside this calculation.
- Inputs stay in your browser and are never stored or transmitted.
How it is calculated
- Debts, the marital deduction and charitable bequests come off the gross estate to give the taxable estate.
- Adjusted taxable gifts after 1976 are added to produce the tax base.
- The section 2001(c) schedule gives the tentative tax on that base.
- The Form 706 line 7 gift-tax adjustment is subtracted, followed by the applicable credit including entered DSUE.
Examples
Common mistakes
- File to preserve portability. The DSUE election is lost if no return is filed for the first spouse's death.
- Check your state. State estate and inheritance tax rules and thresholds differ from federal rules.
- Valuation drives everything. Closely held businesses and real estate need an appraisal before any of these numbers mean much.
FAQ
How large does an estate have to be before tax is due?
Estates of people who die during 2026 have a basic exclusion of $15,000,000, up from $13,990,000 for 2025. The applicable credit and adjusted lifetime gifts must be considered together. The top federal rate is 40%. Because the marital deduction is unlimited, an estate left entirely to a citizen spouse owes nothing regardless of size.
What is the unified credit?
Rather than exempting the first $15 million outright, the law computes tax on the whole taxable amount and then subtracts a credit equal to the tax on the exclusion, which is $5,945,800 for 2026. The result is the same as an exemption, but it explains why the printed rate schedule starts at 18% while the rate that actually matters is the top one, 40%.
What is portability and why file when no tax is due?
A surviving spouse can add the deceased spouse's unused exclusion, known as DSUE, to their own. That requires filing Form 706 for the first death even though no tax is owed, and the election is easy to lose by not filing. Doing so can double the exclusion available at the second death, which is why executors often file a return for an estate well below the threshold.
Are lifetime gifts counted?
Yes. Adjusted taxable gifts after 1976 are included, even if not yet reported; do not add gifts already included in the gross estate a second time. The Form 706 Part II line 7 worksheet determines the prior gift-tax adjustment to subtract before the applicable credit. That is why giving away money before death does not by itself avoid the tax, although it does move future growth out of the estate.
Does my state charge estate tax too?
Some states impose their own estate or inheritance taxes, with separate exclusions and rules. This tool estimates federal tax only. An estate with no federal tax can still owe state tax. Check the relevant state department of revenue.
Is anything I type sent anywhere?
No. The whole calculation runs in this page and the figures never leave your device.