Estate Tax Calculator
Estimate federal and state estate taxes for 2023-2024
Federal Estate Tax Exemption
Gifts During Lifetime
Estate Summary
Gross Estate Value:
$5,000,000
Total Deductions:
$2,700,000
Taxable Estate:
$2,300,000
Federal Estate Tax
Applicable Exclusion Amount:
$13,610,000
Taxable Amount:
$0
Estimated Federal Estate Tax:
$0
State Estate Tax
State Exemption Amount:
$0
Taxable Amount:
$0
Estimated State Estate Tax:
$0
Total Inheritance
Net Estate Value After Taxes:
$5,000,000
Total Estate Tax Liability:
$0
Understanding Estate Taxes
What is the Estate Tax?
The estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.
Federal Estate Tax Exemption
For 2024, the federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples using portability). Estates valued below this threshold generally owe no federal estate tax.
Key Components of Estate Tax Calculation
- Gross Estate: The total value of all assets including real estate, investments, business interests, and personal property
- Deductions: Allowable reductions including debts, funeral expenses, and charitable donations
- Marital Deduction: Unlimited deduction for assets transferred to a surviving spouse
- Portability: Allows surviving spouse to use unused portion of deceased spouse's exemption
State Estate Taxes
Several states impose their own estate taxes with exemption amounts typically much lower than the federal level:
- Oregon: $1 million exemption
- Massachusetts: $2 million exemption
- New York: $6.94 million exemption (2024)
- Washington: $2.193 million exemption
Strategies to Reduce Estate Taxes
- Make use of annual gift tax exclusions ($18,000 per recipient in 2024)
- Establish trusts to remove assets from your taxable estate
- Make charitable donations during life or through your estate
- Consider life insurance to provide liquidity for tax payments
- Use portability election for married couples