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Estate Tax Tax Impact Estimator

This estimator isolates the potential federal estate-tax impact on a simplified estate value. It subtracts entered deductions from the gross estate, compares the result with a configurable exclusion, and applies an assumed tax rate only to the excess.

The default inputs reflect a 2026 federal planning baseline of a $15 million basic exclusion and a 40% rate assumption, but both can be changed. This makes the page useful for sensitivity testing when estate values or future tax-law assumptions vary. It is not a substitute for Form 706 because the actual federal estate-tax computation may involve prior taxable gifts, the unified credit, marital or charitable deductions, portability, valuation rules, and other adjustments.

Estate tax assumptions

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Result
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Estimated estate tax
Net estate before tax—
Amount above exclusion—
After-tax estate—
Effective tax on net estate—

1. Enter the gross estate
Start with the total estate value included in your simplified scenario.

2. Subtract modeled deductions
Enter debts and deductions you want removed before the exclusion comparison.

3. Set the federal exclusion
Use the 2026 default or change it for a different year or planning assumption.

4. Set the tax rate
Enter the marginal estate-tax rate to apply to value above the exclusion.

5. Review tax exposure
Use taxable excess, estimated tax, and effective tax percentage to compare scenarios.

Net estate = Gross estate − Deductions
Taxable excess = max(0, Net estate − Exclusion)
Estimated estate tax = Taxable excess × Tax rate

The formula is a planning shortcut. The actual estate-tax return applies statutory tax calculations and credits and can be affected by lifetime gifts and elections.

What the result means

The result shows the modeled tax on net estate value above the entered exclusion.

The default 2026 federal exclusion is $15,000,000. State estate or inheritance taxes are outside this estimate.

Given: $22,000,000 gross estate, $2,000,000 deductions, $15,000,000 exclusion, 40% rate.

Calculation: Net estate = $20,000,000. Taxable excess = $5,000,000. Estimated tax = $5,000,000 × 40% = $2,000,000.

Result: Estimated estate tax = $2,000,000; simplified after-tax estate = $18,000,000.

Interpretation: The modeled tax equals 10% of the net estate because only the $5 million excess is taxed in this simplified scenario.

What is the 2026 federal exclusion used here?

The default is $15,000,000, matching the 2026 federal basic exclusion amount. You can change the field for another year or scenario.

Why is 40% the default tax rate?

The calculator uses 40% as a simplified top federal estate-tax rate assumption. Actual estate-tax computation uses statutory schedules, credits, deductions, prior taxable gifts, and other rules.

Are prior lifetime gifts included?

Only if you reflect them in your inputs or planning assumptions. The page does not reproduce the adjusted-taxable-gift and unified-credit mechanics of Form 706.

Does a gross estate above the exclusion always owe tax?

No. Deductions, marital and charitable transfers, credits, portability, prior gifts, and valuation rules can change the result. The calculator intentionally uses a simplified taxable-excess model.

Can this estimate state death taxes?

Not automatically. State estate or inheritance tax systems use different exemptions and rates, so they should be modeled separately.