Estate Tax Calculator
Calculate federal estate tax liability for 2024. Includes unified credit exemption, portability rules, and progressive tax brackets.
Estate Tax Summary
Exemption & Credits
Tax Breakdown
Understanding Federal Estate Tax
The federal estate tax is a tax on the transfer of property at death. With a high exemption amount, only the wealthiest estates are typically subject to this tax. Understanding the exemption, portability, and tax rates is crucial for estate planning.
2024 Estate Tax Exemption
| Filing Status | 2024 Exemption | 2023 Exemption | Change |
|---|---|---|---|
| Single | $13,610,000 | $12,920,000 | +5.3% |
| Married (Joint) | $27,220,000 | $25,840,000 | +5.3% |
| Surviving Spouse | $27,220,000 | $25,840,000 | +5.3% |
Estate Tax Brackets (2024)
| Taxable Amount Over | Tax Rate | Tax Owed |
|---|---|---|
| $0 - $13,610,000 | 0% | $0 |
| $13,610,000 - $22,784,000 | 18% | $0 + 18% of excess |
| $22,784,000 - $38,959,000 | 20% | $1,675,440 + 20% of excess |
| $38,959,000 - $64,650,000 | 22% | $4,864,240 + 22% of excess |
| $64,650,000 - $96,163,000 | 24% | $9,963,640 + 24% of excess |
| $96,163,000 - $149,137,000 | 26% | $19,715,640 + 26% of excess |
| $149,137,000 - $355,137,000 | 28% | $35,191,640 + 28% of excess |
| $355,137,000+ | 30% | $85,191,640 + 30% of excess |
Portability of Exemption
The unused portion of a deceased spouse's exemption can be transferred to the surviving spouse, effectively doubling the exemption amount for married couples.
Portability Rules
- Available to surviving spouses only
- Amount is adjusted for inflation
- Filed on final Form 706
- Can be elected by executor
- Benefits second marriages
Deductions and Credits
Unlimited Deductions
- Marital deduction (unlimited)
- Charitable bequests
- Funeral expenses
- Administration expenses
Credits Against Tax
- Unified credit ($13.61M exemption)
- Foreign death tax credit
- Credits for tax on prior transfers
- Credits for gift tax paid
State Estate Taxes
Some states have their own estate taxes with lower exemption thresholds. These are in addition to federal estate tax and can significantly increase total tax liability.
| State | Exemption | Top Rate |
|---|---|---|
| New York | $6,940,000 | 16% |
| Massachusetts | $1,000,000 | 16% |
| Oregon | $1,000,000 | 16% |
| Washington | $2,193,000 | 20% |
Estate Planning Strategies
Annual Gifts
$18,000 per person per year
Exempt from gift tax
Reduces taxable estate
Irrevocable Trusts
Remove assets from estate
Protect against creditors
Complex but effective
Life Insurance
Proceeds not included in estate
If properly owned
Provides liquidity
Filing Requirements
When to File Form 706
- Gross estate over $13.61 million
- Surviving spouse election
- Special use valuation
- Qualified conservation easement
Filing Deadlines
- 9 months after date of death
- Extensions available (6 months)
- Early filing encouraged
- Penalties for late filing
Key Takeaways
- Federal estate tax exemption is $13.61 million for 2024
- Only affects the wealthiest estates
- Portability allows married couples to combine exemptions
- Progressive tax rates from 18% to 30%
- State estate taxes may apply in addition
- Annual gifting can reduce taxable estate
- Life insurance and trusts can help with planning
- Consult an estate planning attorney for personalized advice