Estate Tax Calculator — Estimate Federal Estate Tax — USA 2026
Calculate federal estate tax on your estate. See the current exemption threshold and tax rates for estates above the limit in 2026.
The federal estate tax applies only to estates exceeding the exemption threshold which is approximately $13.61 million per individual in 2026 ($27.22 million for married couples with portability). This means over 99.5% of Americans owe zero estate tax. For estates above the exemption the marginal tax rate is 40%. The exemption is scheduled to drop to approximately $7 million in 2026 under current law unless Congress acts to extend the higher amount.
Do I need to worry about estate tax?
If your total estate (assets minus debts) is below $13.61 million as an individual or $27.22 million as a married couple you owe zero federal estate tax. Most Americans fall well below these thresholds. However some states have their own estate or inheritance taxes with much lower exemptions. Check your state laws separately.
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Estate Tax Calculator
How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
Key Information
| Parameter | Details |
|---|---|
| 2026 Exemption (Individual) | $13.61 million (approx) |
| 2026 Exemption (Married) | $27.22 million (with portability) |
| Tax Rate Above Exemption | 40% marginal rate |
| Estates Subject to Tax | Less than 0.5% of all estates |
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Use Calculator NowFrequently Asked Questions
Do I need to worry about estate tax?
If your total estate (assets minus debts) is below $13.61 million as an individual or $27.22 million as a married couple you owe zero federal estate tax. Most Americans fall well below these thresholds. However some states have their own estate or inheritance taxes with much lower exemptions. Check your state laws separately.
What counts in my taxable estate?
Your taxable estate includes: real estate investments bank accounts retirement accounts life insurance death benefits (if you own the policy) business interests personal property and any other assets minus debts funeral expenses and estate administration costs. Life insurance is often the surprise inclusion that pushes estates above the exemption.
How can high-net-worth individuals reduce estate tax?
Common strategies include: irrevocable life insurance trusts (remove insurance from estate) gifting up to $18000 per recipient annually (tax-free) charitable remainder trusts grantor retained annuity trusts (GRATs) family limited partnerships and spousal lifetime access trusts (SLATs). Starting estate planning early maximizes tax savings through compound growth outside the taxable estate.
What are the US federal tax brackets?
The US uses seven progressive tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your effective tax rate is the average across all brackets, which is always lower than your marginal rate. Standard deduction for 2026 is approximately $15,000 for single filers and $30,000 for married filing jointly.
How can I reduce my US tax bill legally?
Maximize 401(k) or IRA contributions to reduce taxable income. Contribute to an HSA if eligible. Claim the standard or itemized deduction — whichever is higher. Use tax-loss harvesting to offset capital gains. Consider qualified charitable contributions and education credits.
What is the difference between marginal and effective tax rate?
Your marginal rate is the tax on your last dollar earned. Your effective rate is total tax divided by total income — always lower. For example, at $100,000 income, your marginal rate might be 22% but your effective rate is only about 15% because lower brackets are taxed at 10% and 12%.
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Last updated: March 2026