2025 Federal & State Estate Tax Calculator
Calculate estate taxes with 2025 exemptions and explore tax-saving strategies
Estate Value & Deductions
Assets Breakdown
Beneficiaries & Deductions
Estate Distribution
Asset Breakdown
Tax Planning Impact
Federal Estate Tax Exemption History
*2026 shows sunset provision (revert to ~$7M adjusted for inflation)
Federal Exemption Status
$13,990,000
Estate is below federal exemption limit
Estate Tax Calculation
0.0%
Estate Planning Tips
- •2025 federal exemption is $13.99M per person ($27.98M for couples)
- •Exemption sunsets in 2026 - will drop to ~$7M unless extended
- •Annual gift exclusion for 2025 is $18,000 per recipient
- •Consider lifetime gifting strategies before sunset provision
Quick Answer: 2025 Estate Tax
For a $20 million estate in 2025:
- Federal Exemption: $13.99 million (single) / $27.98 million (married)
- Taxable Amount: $6.01 million
- Federal Tax Rate: 40%
- Federal Tax Due: $2.404 million
- State Tax: Varies by state (13 states + DC have estate taxes)
Understanding Estate Tax in 2025
The Estate Tax Calculator helps individuals and families estimate federal and state estate tax liabilities for 2025. With the federal exemption at $13.99 million per person, most estates won't owe federal tax, but proper planning is essential for larger estates to minimize tax burden and maximize wealth transfer to beneficiaries.
How to Use This Calculator
Step 1: Enter Estate Value
Input the total gross estate value including all assets: real estate, investments, business interests, personal property, and life insurance proceeds.
Step 2: Add Deductions
Include allowable deductions such as debts, mortgages, funeral expenses, estate administration costs, and charitable bequests.
Step 3: Specify Marital Status
Select your filing status and state. Married couples can combine exemptions for $27.98 million total. State estate taxes vary significantly.
Step 4: Review Planning Strategies
Explore various estate planning tools like GRATs, CRTs, ILITs, and QPRTs to potentially reduce your estate tax liability.
Key Concepts and Formulas
Estate Tax Calculation
Taxable Estate = Gross Estate - Deductions - Exemption
Estate Tax = Taxable Estate × 40%
2025 Federal Exemptions
- Single: $13.99 million
- Married: $27.98 million (with portability)
- Annual Gift Exclusion: $18,000 per recipient
- Lifetime Gift Exemption: Same as estate exemption
Common Planning Strategies
- GRAT: Grantor Retained Annuity Trust - transfer appreciation tax-free
- CRT: Charitable Remainder Trust - income stream plus charitable deduction
- ILIT: Irrevocable Life Insurance Trust - remove life insurance from estate
- QPRT: Qualified Personal Residence Trust - transfer residence at reduced value
Real-World Examples
Example 1: Below Exemption
- Gross Estate: $10 million
- Deductions: $500,000
- Net Estate: $9.5 million
- Federal Exemption: $13.99 million
- Federal Tax: $0 (below exemption)
Example 2: Above Exemption
- Gross Estate: $25 million
- Deductions: $1 million
- Net Estate: $24 million
- Taxable Amount: $10.01 million
- Federal Tax: $4.004 million (40%)
Frequently Asked Questions
What is the 2025 federal estate tax exemption?
The 2025 federal estate tax exemption is $13.99 million per individual ($27.98 million for married couples). Estates valued below this threshold generally owe no federal estate tax.
What happens to the exemption in 2026?
Unless Congress acts, the exemption will sunset on January 1, 2026, reverting to approximately $7 million per person (adjusted for inflation) from the current $13.99 million.
Which states have estate taxes?
As of 2025, 13 states and DC have estate taxes: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington.
What is the marital deduction?
The unlimited marital deduction allows you to transfer any amount of assets to your surviving spouse tax-free, as long as your spouse is a U.S. citizen.