Federal Estate Tax Calculator
Estimate your federal estate tax liability based on current exemption amounts and tax rates. This calculator helps you understand potential taxes on inherited assets.
Estate Information
Includes mortgages, debts, administrative expenses
2023 federal exemption: $12.92 million
Understanding Estate Tax
The federal estate tax applies to the transfer of property at death. Key points:
- Tax is calculated on the net taxable estate (gross estate minus deductions)
- The current federal exemption is $12.92 million (2023)
- Tax rates range from 18% to 40% on amounts above the exemption
- Many states have their own estate taxes with lower exemption amounts
Tax Liability Summary
Gross Estate Value
$15,000,000
Taxable Estate
$12,500,000
Estimated Estate Tax
$1,032,000
Effective Rate: 8.25%
Net Estate Value
$13,468,000
Exemption Utilization
$0
$12,920,000 Exemption
$15,000,000
| Calculation Step | Amount |
|---|---|
| Gross Estate Value | $15,000,000 |
| Minus: Deductions & Expenses | -$1,000,000 |
| Minus: Charitable Donations | -$500,000 |
| Adjusted Gross Estate | $13,500,000 |
| Minus: Federal Exemption | -$12,920,000 |
| Taxable Estate | $580,000 |
| Tax on First $1,000,000 | $345,800 |
| Tax on Amount Above $1,000,000 (40%) | $232,000 |
| Total Federal Estate Tax | $577,800 |
Estate Tax Details
Federal estate tax rates for 2023:
- 18% on the first $10,000
- 20% on amounts $10,001-$20,000
- 22% on amounts $20,001-$40,000
- 24% on amounts $40,001-$60,000
- 26% on amounts $60,001-$80,000
- 28% on amounts $80,001-$100,000
- 30% on amounts $100,001-$150,000
- 32% on amounts $150,001-$250,000
- 34% on amounts $250,001-$500,000
- 37% on amounts $500,001-$750,000
- 39% on amounts $750,001-$1,000,000
- 40% on amounts over $1,000,000
Note: State estate taxes may apply in addition to federal taxes.