What is Estate Tax Calculator?
Calculates federal estate tax (IRS Form 706) assessed on high-net-worth decedents whose taxable estate exceeds the federal lifetime exclusion.
How to Use This Calculator
- Enter gross market value of all assets.
- Deduct debts, administrative expenses, and spousal bequests.
- View taxable estate and estate tax liability.
The Mathematical Formula & Variables
Tax = 40% * max(0, Gross - Debts - Charitable - Exemption)
Step-by-Step Worked Example
Scenario: $5,000,000 estate with $250,000 liabilities.
- Net estate = $4,750,000.
- Federal exemption = $13,610,000.
- Net estate is below exemption limit -> $0 estate tax.
Result: $0.00 Estate Tax
Frequently Asked Questions
What is portability of the estate tax exemption?
Portability allows a surviving spouse to elect to use any unused portion of the deceased spouse's estate tax exemption (DSUE).