Federal Estate Tax Calculator
Estimate potential federal estate taxes on an inheritance based on current IRS exemption limits.
Federal Estate Tax Calculator
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Understanding the Federal Estate Tax
The Federal Estate Tax (sometimes politically referred to as the "Death Tax") applies to the transfer of property at death. Because of historically high exemption limits, less than 0.1% of estates in the United States actually pay this tax.
How the Tax is Calculated
If the total value of an estate (cash, real estate, trusts, businesses, insurance payouts) exceeds the federal exemption limit, the overage is taxed. While there are graduated brackets, the top rate of 40% quickly applies to almost all taxable amounts over the limit.
- 2024 Exemption: $13.61 million per individual
- 2023 Exemption: $12.92 million per individual
Under current law (the sunsetting of the Tax Cuts and Jobs Act), the federal exemption is scheduled to be cut roughly in half on January 1, 2026, dropping to around $7 million per individual. Estate planning attorneys advise preparing for this shift now.