Estimate your potential federal and state estate tax liability based on current exemption amounts and rates. Get instant calculations and tax-saving tips.
Estate Tax Calculation Results
Tax-Saving Recommendations
Example Calculations
Example 1: Single Individual Below Exemption
Scenario: Single individual with $5 million estate in Florida (no state estate tax), $200,000 in debts, and $50,000 in funeral expenses.
Calculation: $5,000,000 - $200,000 - $50,000 = $4,750,000 taxable estate. This is below the $13.61M federal exemption, so no federal or state tax is due.
Example 2: Married Couple Using Portability
Scenario: Married couple in New York with $20 million estate. First spouse died using $5M of exemption, leaving $8.61M unused (portability). $1M in debts/expenses.
Calculation: $20,000,000 - $1,000,000 = $19M taxable estate. Exemption = $13.61M (current) + $8.61M (portability) = $22.22M. No federal tax. NY state tax would apply to amount over $6.94M exemption.
Example 3: Large Estate Exceeding Exemption
Scenario: Single individual with $25 million estate in Massachusetts, $2M in debts, $100K funeral expenses, $1M charitable gifts.
Calculation: $25,000,000 - $2,000,000 - $100,000 - $1,000,000 = $21.9M taxable estate. Federal tax on $8.29M ($21.9M - $13.61M) at progressive rates. MA state tax on amount over $2M.
Estate Tax Planning Tips
1. Leverage Annual Gift Tax Exclusion
In 2024, you can gift up to $18,000 per recipient per year without reducing your lifetime exemption. Married couples can combine for $36,000 per recipient.
2. Consider Irrevocable Life Insurance Trusts (ILIT)
Life insurance proceeds are included in your taxable estate if you own the policy. An ILIT can remove them from your estate while providing liquidity to pay taxes.
3. Maximize Portability for Married Couples
Ensure you file IRS Form 706 to preserve any unused exemption amount when the first spouse dies, effectively doubling the exemption for the surviving spouse.
4. Establish Charitable Trusts
Charitable Remainder Trusts (CRTs) can provide income during life while removing assets from your estate. Charitable Lead Trusts (CLTs) can benefit heirs after a charity receives payments.
5. Review State-Specific Planning
If you live in a state with lower exemptions (like MA or OR), consider trusts or other strategies to minimize state tax exposure separate from federal planning.