Estate Tax Exemption Calculator

Federal estate tax exemption $13.61M individual (2024) — sunset to ~$7M (2026).

Total estate value

Individual exemption

Lifetime gifts already used

State exemption

State rate %

Total estate tax

$2,556,000

Federal estate tax

$2,556,000

State estate tax

How the math works

Federal: max(0, value − exemption) × 40%. State: max(0, value − state exemption) × state rate.

$20M − $13.61M = $6.39M × 40% = $2.56M federal estate tax (no state assumed).

How to Use

Enter total estate value.
Enter individual exemption.
Enter lifetime gifts already used.
Enter state exemption.
Enter state rate %.
Read total estate tax.

Frequently Asked Questions

Estate tax landscape?

Federal exemption: $13.61M individual / $27.22M married (2024 indexed). Sunset Dec 31, 2025 to ~$7M individual / $14M married unless Congress extends. Tax above exemption: 40% federal. State estate tax: NY ($6.94M), MA ($2M), OR ($1M), WA ($2.193M), MN, CT, RI, MD, ME, IL, others. Generation-skipping transfer (GST) tax: separate exemption, 40% rate. Strategies: lifetime gifting, GRATs, IDGTs, ILITs. Step-up at death = capital gains wipeout but estate tax burden.

How is this tax impact computed?

Tax outcomes depend on filing status, income bracket, depreciation schedule, basis adjustments, AMT exposure, and state conformity. Real estate tax planning typically involves cost segregation, 1031 exchanges, opportunity zone, depreciation recapture, passive activity rules, and entity structure (LLC vs partnership vs S-corp). This calculator provides directional analysis — final position requires CPA review.

State conformity?

States vary on conformity to federal tax code: California, NY, MA decouple selectively. Bonus depreciation: most states reduce or eliminate. QBI: most states don't conform. Section 1031: federal-only deferral, some states require state-level recapture. Property tax cap: state-specific (CA Prop 13, MI Headlee, FL SOH). Multi-state property requires apportionment analysis.

When to prioritize this strategy?

Tax strategies have setup cost, complexity, and audit risk. Cost segregation: $5–15k study, materially helps high-basis investors. 1031: 45/180 day deadlines, identification rules, qualified intermediary fees. Opportunity Zone: long hold required. Stack strategies: don't double-count benefits. CPA + tax attorney coordination essential for $1M+ strategies.