★ MONEY · TAX · ESTATES
$1,345,800.00 is the federal estate tax on a $25,000,000 estate — and the heirs keep $17,154,200.00. The $15,000,000 exemption takes the first bite, and the graduated 18%–40% table taxes the rest. Enter your estate to find the taxable estate, the tax owed and what the heirs keep.
In 2026 the first $15,000,000 of a net estate is exempt from federal estate tax, and anything over it is taxed at the graduated rates from 18% to 40%. This calculator works out the net estate, the remaining exemption, the taxable estate, the tax owed, the effective rate and what the heirs keep.
Federal estate tax has four steps. First, the net estate: the gross estate minus debts and expenses, charitable bequests and the marital deduction. Second, the exemption: in 2026 the first $15,000,000 of a net estate is exempt, less any prior taxable gifts already made during life. Third, the taxable estate: the net estate minus the remaining exemption, never below $0. Fourth, the tax: the graduated rate table from 18% to 40% applied to the taxable estate. The heirs keep the net estate minus the tax. This is federal tax only — 12 states plus DC levy their own estate tax with much lower exemptions (Oregon $1,000,000, Massachusetts $2,000,000), and this calculator does not estimate state tax.
At the defaults — a $25,000,000 gross estate, $500,000 of debts, $1,000,000 to charity, $5,000,000 to the spouse, $0 of prior taxable gifts — the net estate is $25,000,000 − $500,000 − $1,000,000 − $5,000,000 = $18,500,000.00. The remaining exemption is $15,000,000 − $0 = $15,000,000.00. The taxable estate is $18,500,000 − $15,000,000 = $3,500,000.00. The tax is $345,800 + 40% of $2,500,000 = $1,345,800.00, an effective rate of 38.45%. The heirs keep $18,500,000 − $1,345,800 = $17,154,200.00.
| Rate | Taxable estate in this bracket | Tax on all lower brackets |
|---|---|---|
| 18% | $0 – $10,000 | $0 |
| 20% | $10,000 – $20,000 | $1,800 |
| 22% | $20,000 – $40,000 | $3,800 |
| 24% | $40,000 – $60,000 | $8,200 |
| 26% | $60,000 – $80,000 | $13,000 |
| 28% | $80,000 – $100,000 | $18,200 |
| 30% | $100,000 – $150,000 | $23,800 |
| 32% | $150,000 – $250,000 | $38,800 |
| 34% | $250,000 – $500,000 | $70,800 |
| 37% | $500,000 – $750,000 | $155,800 |
| 39% | $750,000 – $1,000,000 | $248,300 |
| 40% | Over $1,000,000 | $345,800 |
| Case | Net estate | Taxable | Tax | Heirs keep |
|---|---|---|---|---|
| Default ($25,000,000 gross) | $18,500,000.00 | $3,500,000.00 | $1,345,800.00 | $17,154,200.00 |
| Gross $16,000,000 | $9,500,000.00 | $0.00 | $0.00 | $9,500,000.00 |
| Gross $30,000,000 | $23,500,000.00 | $8,500,000.00 | $3,345,800.00 | $20,154,200.00 |
| Marital $10,000,000 | $13,500,000.00 | $0.00 | $0.00 | $13,500,000.00 |
| Charitable $0 | $19,500,000.00 | $4,500,000.00 | $1,745,800.00 | $17,754,200.00 |
| Prior gifts $2,000,000 | $18,500,000.00 | $5,500,000.00 | $2,145,800.00 | $16,354,200.00 |
| Small estate $5,000,000 | $4,900,000.00 | $0.00 | $0.00 | $4,900,000.00 |
| Debts $2,000,000 | $17,000,000.00 | $2,000,000.00 | $745,800.00 | $16,254,200.00 |
| Gross $22,250,000 | $15,750,000.00 | $750,000.00 | $248,300.00 | $15,501,700.00 |
| Gross $22,000,000 | $15,500,000.00 | $500,000.00 | $155,800.00 | $15,344,200.00 |
Setup: gross estate $25,000,000, debts $500,000, charitable $1,000,000, marital $5,000,000, prior taxable gifts $0.
Line 1 — the net estate. $25,000,000 − $500,000 − $1,000,000 − $5,000,000 = $18,500,000.00.
Line 2 — the remaining exemption. $15,000,000 − $0 = $15,000,000.00.
Line 3 — the taxable estate. $18,500,000 − $15,000,000 = $3,500,000.00.
Line 4 — the tax. $345,800 + 40% of ($3,500,000 − $1,000,000) = $345,800 + $1,000,000 = $1,345,800.00.
Line 5 — the effective rate. $1,345,800 ÷ $3,500,000 = 38.45%.
Line 6 — what the heirs keep. $18,500,000 − $1,345,800 = $17,154,200.00.
Reverse: the first dollar of tax starts at a $21,500,000 gross estate (the net estate is $15,000,000 exactly, and one dollar more starts tax at 18%); a $24,135,500 gross estate owes exactly $1,000,000 of tax (taxable $2,635,500 exactly, since $345,800 + 40% of $1,635,500 = $1,000,000); an extra $3,500,000 of marital deduction — raising it to $8,500,000 in total — brings the net estate to $15,000,000 and the tax to $0.
Gross $16,000,000: the net estate is $9,500,000.00, which is under the $15,000,000.00 exemption, so the taxable estate is $0.00, the tax is $0.00 and the heirs keep the whole $9,500,000.00. Nine and a half million dollars of net estate owes nothing at all — the exemption is what matters, not the size of the estate.
Gross $30,000,000: the net estate is $23,500,000.00 and the taxable estate is $8,500,000.00. The tax is $345,800 + 40% of $7,500,000 = $3,345,800.00, and the heirs keep $20,154,200.00. Five million more of gross estate than the defaults is worth $2,000,000.00 more tax.
Marital $10,000,000: the net estate falls to $13,500,000.00, which is under the exemption, so the taxable estate is $0.00 and the tax is $0.00. The heirs keep $13,500,000.00. Doubling the marital deduction wipes out a $1,345,800.00 bill.
Charitable $0: the net estate is $19,500,000.00 and the taxable estate is $4,500,000.00. The tax is $345,800 + 40% of $3,500,000 = $1,745,800.00, and the heirs keep $17,754,200.00. Skipping the $1,000,000 charitable bequest costs $400,000.00 of tax — 40 cents on every dollar that stays in the estate.
Prior gifts $2,000,000: the remaining exemption is $15,000,000 − $2,000,000 = $13,000,000.00, so the taxable estate is $5,500,000.00 and the tax is $345,800 + 40% of $4,500,000 = $2,145,800.00. The heirs keep $16,354,200.00. Gifts made during life spend the same exemption the estate needs.
Small estate $5,000,000: the net estate is $4,900,000.00, the taxable estate is $0.00 and the tax is $0.00. Most estates owe nothing at all — the exemption covers them twice over.
Debts $2,000,000: the net estate is $17,000,000.00 and the taxable estate is $2,000,000.00. The tax is $345,800 + 40% of $1,000,000 = $745,800.00, and the heirs keep $16,254,200.00. Every dollar of debt is a dollar out of the taxable estate.
Gross $22,250,000: the net estate is $15,750,000.00 and the taxable estate is $750,000.00 — exactly the top of the 39% bracket. The tax is $248,300.00 and the heirs keep $15,501,700.00.
Gross $22,000,000: the net estate is $15,500,000.00 and the taxable estate is $500,000.00 — exactly the top of the 34% bracket. The tax is $155,800.00 and the heirs keep $15,344,200.00. A quarter of a million less of gross estate than the case above saves $92,500.00 of tax.
Reverse — the other way round: the first dollar of tax starts at a $21,500,000 gross estate; a $24,135,500 gross estate owes exactly $1,000,000 of tax; an extra $3,500,000 of marital deduction — raising it to $8,500,000 in total — zeroes the bill.
The model assumes the 2026 figures: a $15,000,000 federal exemption per person and the graduated rate table from 18% to 40% with the $345,800 base over $1,000,000. It assumes the gross estate, debts, charitable bequests, marital deduction and prior taxable gifts you enter are right — check them, because a bequest you forgot about is the one that starts the tax. It assumes the marital deduction goes to a U.S.-citizen spouse, which is fully deductible, and it leaves out state estate tax entirely: 12 states plus DC charge their own, with much lower exemptions. Rounding convention: money is rounded to cents, and all figures are computed from unrounded values, rounded only for display.
| Output | Formula | What it means |
|---|---|---|
| Net estate | gross − debts − charitable − marital | $18,500,000.00. |
| Remaining exemption | $15,000,000 − prior taxable gifts (never below $0) | $15,000,000.00. |
| Taxable estate | net − exemption (never below $0) | $3,500,000.00. |
| Federal tax | graduated 18%–40% table on the taxable estate | $1,345,800.00. |
| Effective rate | tax ÷ taxable estate | 38.45%. |
| Net to heirs | net estate − federal tax | $17,154,200.00. |
| Gross estate that first owes tax | exemption + debts + charitable + marital | $21,500,000.00. |
| Gross estate owing exactly $1,000,000 tax | $2,635,500 taxable + exemption + debts + charitable + marital | $24,135,500.00. |
| Taxable estate for exactly $1,000,000 tax | $345,800 + 40% × (taxable − $1,000,000) = $1,000,000 | $2,635,500.00. |
| Extra marital deduction to owe $0 | the taxable estate itself | $3,500,000.00 on top of the $5,000,000 already entered. |
| Marital deduction that zeroes the bill | marital entered + extra marital needed | $8,500,000.00 in total. |
| Gross $16,000,000 | same model, $16,000,000 gross | Net $9,500,000.00, taxable $0.00, tax $0.00, heirs $9,500,000.00. |
| Gross $30,000,000 | same model, $30,000,000 gross | Net $23,500,000.00, taxable $8,500,000.00, tax $3,345,800.00, heirs $20,154,200.00. |
| Marital $10,000,000 | same model, $10,000,000 marital | Net $13,500,000.00, taxable $0.00, tax $0.00, heirs $13,500,000.00. |
| Charitable $0 | same model, no charitable bequest | Net $19,500,000.00, taxable $4,500,000.00, tax $1,745,800.00, heirs $17,754,200.00. |
| Prior gifts $2,000,000 | same model, $2,000,000 prior gifts | Net $18,500,000.00, taxable $5,500,000.00, tax $2,145,800.00, heirs $16,354,200.00. |
| Small estate $5,000,000 | same model, $5,000,000 gross | Net $4,900,000.00, taxable $0.00, tax $0.00, heirs $4,900,000.00. |
| Debts $2,000,000 | same model, $2,000,000 debts | Net $17,000,000.00, taxable $2,000,000.00, tax $745,800.00, heirs $16,254,200.00. |
| Gross $22,250,000 | same model, $22,250,000 gross | Net $15,750,000.00, taxable $750,000.00, tax $248,300.00, heirs $15,501,700.00. |
| Gross $22,000,000 | same model, $22,000,000 gross | Net $15,500,000.00, taxable $500,000.00, tax $155,800.00, heirs $15,344,200.00. |
The math is exact for the numbers you enter: the net estate is the gross minus the three deductions, the taxable estate is the net minus the remaining exemption, and the tax is the graduated table on the taxable estate. What the model cannot do is value the estate for you: check the gross estate, because a life-insurance policy the estate owns generally counts, and a policy owned by a trust generally does not. It assumes the 2026 exemption and rate table and leaves out state estate tax, which 12 states plus DC charge with much lower exemptions — Oregon $1,000,000, Massachusetts $2,000,000. For the gift-tax side of the same exemption, see gift tax calculator; for the credit a family gets for a child, see child tax credit calculator.
Bright Side Kit. "Estate Tax Calculator: Federal Tax & Exemption 2026." https://brightoolbox.com/estate-tax-calculator/ Accessed October 25, 2026.$15,000,000 per person. The first $15,000,000 of a net estate is exempt from federal estate tax, and anything over it is taxed at the graduated rates from 18% to 40%. At the defaults the net estate is $18,500,000.00, so the taxable estate is $3,500,000.00. Prior taxable gifts use up the same exemption: with $2,000,000 of prior gifts the remaining exemption is $13,000,000.00 and the taxable estate is $5,500,000.00.
40%, on the part of the taxable estate over $1,000,000. The table is graduated: 18% on the first $10,000, rising through 39% on the part between $750,000 and $1,000,000. At the defaults the tax is $345,800 + 40% of $2,500,000, which is $1,345,800.00. The effective rate is 38.45% — the top rate is not the rate on the whole estate, only on the part over $1,000,000.
Yes, for a surviving spouse who is a U.S. citizen. Everything that passes to a U.S.-citizen spouse is fully deductible, with no dollar cap. At the defaults the marital deduction is $5,000,000; raising it to $10,000,000 brings the net estate to $13,500,000.00 and the tax to $0.00. An extra $3,500,000 of marital deduction — raising it to $8,500,000 in total — is enough to bring the net estate to $15,000,000 and the tax to $0.
Yes — 12 states plus DC levy their own estate tax, with much lower exemptions. Oregon exempts only $1,000,000 and Massachusetts only $2,000,000, so an estate that owes no federal tax can still owe state tax. This calculator does not estimate state tax: it works out the federal tax only. If the estate is in one of those states, the state bill is a separate calculation on top of the $1,345,800.00 federal tax at the defaults.
Generally yes, if the estate owns the policy. The death benefit on a policy the person owned counts toward the gross estate, so a $1,000,000 policy can push a $24,000,000 estate to $25,000,000 and add tax. If the policy is owned by an irrevocable life insurance trust, the benefit is generally outside the estate. Add the policy to the gross estate if the estate owns it, and leave it out if a trust owns it.
$1,345,800.00 at the defaults, and the heirs keep $17,154,200.00. The gross estate is $25,000,000, less $500,000 of debts, $1,000,000 to charity and $5,000,000 to the spouse, which leaves a net estate of $18,500,000.00. Less the $15,000,000.00 exemption, the taxable estate is $3,500,000.00, and the tax on it is $345,800 + 40% of $2,500,000, which is $1,345,800.00. The first dollar of tax starts at a $21,500,000 gross estate.