Estate Tax Exemption Calculator
Calculate how much federal estate and gift tax exemption is used, how much remains, whether Form 706 filing should be reviewed, and how DSUE portability or annual gifts can change the 2026 estate tax picture.
Last Updated: May 31, 2026
Estate Exemption Inputs
Model the federal estate and gift tax exclusion, Form 706 filing threshold, DSUE, lifetime taxable gifts, deductions, annual gift exclusion use, and estimated federal estate tax.
Controls the federal basic exclusion and annual gift exclusion.
Use DSUE mode only when a prior portability election is available.
Fair market value of includible assets before estate deductions.
Property qualifying for the estate tax marital deduction.
Lifetime taxable gifts after annual exclusions.
Optional Form 706-style reduction for gift tax payable at death rates.
Deceased spousal unused exclusion for surviving-spouse mode.
Number of recipients in the current-year gift plan.
Married gift splitting doubles the modeled annual exclusion capacity.
Shown separately because properly direct payments may be excluded from gifts.
Federal Estate Tax
$2,800,000.00
Applicable Exclusion
$15,000,000.00
Remaining Before Estate
$13,000,000.00
Remaining After Estate
$0.00
Form 706 Threshold Base
$24,000,000.00
Federal Status
Federal estate tax exposure
Federal Exemption Readout
The selected 2026 basic exclusion is $15,000,000.00. The modeled applicable exclusion is $15,000,000.00, and the federal tax base before credit is $22,000,000.00. Current status: Federal estate tax exposure.
- Taxable estate
- $20,000,000.00
- Estate value above remaining exemption
- $7,000,000.00
- Lifetime taxable transfers
- $2,000,000.00
- Tentative federal transfer tax
- $8,745,800.00
- Applicable credit equivalent
- $5,945,800.00
- Top marginal federal estate tax rate
- 40.00%
- Exemption usage
- 100.00%
- Projected DSUE available
- $0.00
- Effective rate on taxable estate
- 14.00%
Form 706-Style Worksheet
| Worksheet item | Amount |
|---|---|
| Gross estate | $22,000,000.00 |
| Total deductions used | $2,000,000.00 |
| Taxable estate | $20,000,000.00 |
| Lifetime taxable transfers | $2,000,000.00 |
| Federal tax base before credit | $22,000,000.00 |
| Tentative federal transfer tax | $8,745,800.00 |
| Applicable credit equivalent | $5,945,800.00 |
| Gift tax paid or payable used | $0.00 |
| Other federal credits used | $0.00 |
| Estimated federal estate tax | $2,800,000.00 |
Annual Gift Check
- Annual exclusion per recipient
- $19,000
- Annual exclusion capacity
- $95,000.00
- Annual gifts excluded
- $95,000.00
- Planned taxable gifts
- $0.00
- Direct medical or tuition payments
- $0.00
- Noncitizen spouse annual exclusion
- $194,000
Review Notes
- The gross estate plus adjusted taxable gifts exceeds the basic exclusion amount for the selected year, so federal Form 706 filing should be reviewed.
Exemption And Deduction Breakdown
Review the inputs that affect remaining exemption, filing threshold, and federal estate tax before using the result for planning.
| Exemption item | Amount |
|---|---|
| Basic exclusion amountFederal basic exclusion for 2026. | $15,000,000.00 |
| DSUE usedDeceased spousal unused exclusion entered for surviving-spouse planning. | $0.00 |
| Restored exclusionOptional restored exclusion or other adviser-confirmed adjustment. | $0.00 |
| Prior taxable giftsLifetime taxable gifts after annual exclusions. | $2,000,000.00 |
| Planned taxable giftsCurrent-year gifts above annual exclusion capacity. | $0.00 |
| Deduction item | Amount |
|---|---|
| Debts, mortgages, and liens | $1,000,000.00 |
| Funeral and administration expenses | $300,000.00 |
| Marital deduction | $0.00 |
| Charitable deduction | $500,000.00 |
| State death tax deduction | $0.00 |
| Other deductions | $200,000.00 |
Estate Exemption Planning Estimate
This calculator is an educational estimate for U.S. federal estate and gift tax exemption planning. It does not replace Form 706, Form 709, valuation work, trust-document review, state estate or inheritance tax analysis, GST tax review, or advice from a qualified estate-planning professional.
Professional Review Status
This YMYL page has internal methodology review, but no external credentialed professional review is recorded yet.
- Reliance status
- Credentialed tax review required before professional reliance
- Required credentials
- CPA, Enrolled Agent, licensed tax professional
- Review scope
- tax formulas, jurisdiction assumptions, withholding language, filing-sensitive examples, and compliance caveats
Current reviewer: Iliyas Khan, Internal tax and sales-tax methodology reviewer.
This page is educational planning support. A named CPA, EA, or licensed tax professional should review the page before it is positioned as tax advice or used for filing decisions.
Tax credentialed review: professional reliance limit
This page is educational planning support. A named CPA, EA, or licensed tax professional should review the page before it is positioned as tax advice or used for filing decisions. Results should be treated as a preliminary estimate, not a filing instruction, diagnosis, product recommendation, eligibility decision, or compliance sign-off. Required professional review: CPA, Enrolled Agent, licensed tax professional. Source expectation: Review should cite current IRS, state revenue department, payroll-tax, or official tax authority sources where applicable.
Checked by Iliyas Khan
Estate Tax Exemption Calculator is checked for formula labels, source links, and result limits.
Iliyas Khan, Chief Operating Officer. Updated May 31, 2026. Scope: tax calculators.
Tax credentialed review: Named internal reviewer: Iliyas Khan, Chief Operating Officer. External credentialed professional review is still required before this page is treated as professional advice.
Internal tax and sales-tax methodology reviewer. Review scope: calculator assumptions, labels, source context, workflow clarity, and compliance-sensitive disclaimers.
Relevant review context: CalculatorWallah tax and sales-tax calculator workflow owner; Source-first review of IRS, state revenue, rate, and filing-sensitive references; Compliance-sensitive labels, assumptions, and user-facing disclaimer review.
Required professional credentials: CPA, Enrolled Agent, licensed tax professional. Scope: tax formulas, jurisdiction assumptions, withholding language, filing-sensitive examples, and compliance caveats.
This page is educational planning support. A named CPA, EA, or licensed tax professional should review the page before it is positioned as tax advice or used for filing decisions.
How To Use The Estate Tax Exemption Calculator
Start with the year of death or planning year. For 2026, the calculator uses the IRS basic exclusion amount of $15,000,000and the annual gift exclusion of $19,000 per recipient.
Enter gross estate value before deductions, then enter debts, administration expenses, marital deduction, charitable deduction, and other deductions. The calculator caps deductions at the gross estate so the taxable estate cannot go below zero.
Use the gift section to model prior taxable gifts and a current-year annual gift program. Taxable gifts above annual exclusions use part of the same lifetime exclusion available at death.
Step 1: Choose the year and planning mode
Select the year of death or planning year, then choose individual, portability, surviving-spouse DSUE, or married combined planning mode.
Step 2: Enter gross estate and deductions
Start with fair market value of includible property, then enter debts, administration expenses, marital deduction, charitable deduction, and other estate deductions.
Step 3: Add lifetime taxable gifts and DSUE
Enter prior taxable gifts after annual exclusions, gift tax paid or payable, and any DSUE available to a surviving spouse.
Step 4: Model current-year annual gifts
Enter recipients, gift per recipient, gift-splitting mode, and direct medical or tuition payments to estimate new taxable gifts.
Step 5: Review exemption, filing threshold, and tax exposure
Check remaining exemption before and after the estate, Form 706 threshold base, projected DSUE, and estimated federal estate tax.
How The Federal Estate Tax Exemption Works
Federal estate tax starts with the gross estate, allows certain deductions, adds adjusted taxable gifts, applies the unified estate and gift tax rate schedule, and then reduces the result by the applicable credit. The credit is tied to the available exclusion amount.
The Form 706 filing-threshold test is different from the final tax calculation. A return can be required when gross estate plus adjusted taxable gifts exceeds the basic exclusion, and a return may still be useful to elect portability for a surviving spouse.
| Year | Basic exclusion | Annual gift exclusion | Noncitizen spouse annual exclusion |
|---|---|---|---|
| 2026 | $15,000,000 | $19,000 | $194,000 |
| 2025 | $13,990,000 | $19,000 | $190,000 |
| 2024 | $13,610,000 | $18,000 | $185,000 |
| 2023 | $12,920,000 | $17,000 | $175,000 |
Estate Tax Exemption Guide: 2026 Basic Exclusion, Form 706 Filing Threshold, DSUE Portability, Lifetime Gifts, Annual Gift Exclusion, And Federal Estate Tax Exposure
What the federal exemption shelters
The federal estate and gift tax exemption is unified. Taxable lifetime gifts use the same exclusion that would otherwise shelter transfers at death. Annual exclusion gifts, qualifying direct tuition payments, qualifying direct medical payments, marital deduction transfers, and charitable deduction transfers can change how much exemption is actually consumed.
| Step | What it means | Calculator treatment |
|---|---|---|
| Gross estate | Fair market value of includible property at death. | Used for the Form 706 filing threshold before deductions. |
| Estate deductions | Debts, mortgages, administration expenses, marital deduction, charity, and other entries. | Reduce the taxable estate used in the transfer-tax base. |
| Adjusted taxable gifts | Lifetime taxable gifts after annual exclusions. | Use the same unified estate and gift tax exclusion. |
| Applicable exclusion | Basic exclusion plus modeled DSUE, restored exclusion, or combined planning. | Converted into a unified credit equivalent. |
| Form 706 threshold | Gross estate plus adjusted taxable gifts compared with the basic exclusion. | A return may also be filed to elect portability. |
Why portability matters
A married decedent may leave unused exclusion. If the executor makes a timely portability election on Form 706, the surviving spouse may be able to use that DSUE amount later. This can matter even when the first estate is far below the tax threshold, especially when the surviving spouse may later hold appreciated assets, insurance, retirement accounts, business interests, or inherited property.
Planning triggers to review
| Trigger | Exemption effect | How to model it |
|---|---|---|
| Lifetime taxable gifts | Reduce remaining exemption before death. | Enter prior taxable gifts and current-year gifts above the annual exclusion. |
| Portability election | Can preserve unused exclusion for a surviving spouse. | Use the portability mode when a first spouse dies and no estate tax is due. |
| Marital deduction | Can reduce current estate tax but may move exposure to the surviving spouse. | Compare individual, portability, and surviving-spouse DSUE scenarios. |
| Charitable deduction | Can lower taxable estate and preserve more exemption. | Enter only adviser-confirmed deductible charitable transfers. |
| Annual gifts | May move value out of the estate without using lifetime exemption up to the annual limit. | Use the annual gift section to see excluded and taxable gift portions. |
What this calculator does not replace
Estate tax is valuation-heavy. Real estate, closely held business interests, life insurance ownership, retained powers, trusts, joint property, QTIP elections, QDOT treatment, foreign death taxes, GST tax, and state death taxes can materially change the filing position. Use this page to size the federal exemption question, then use Form 706, Form 709, and adviser workpapers for final filing.
Official video source note
CalculatorWallah reviewed official and institutional video sources for a current, concise estate tax exemption or Form 706 walkthrough. No suitable official or recognized institutional video was found, so this calculator page relies on IRS written sources, including the IRS Estate Tax page, Form 706, estate tax FAQs, gift tax FAQs, and the 2026 inflation adjustment release.
Connect exemption planning to other tax tools
Use this page when the main question is the federal exemption, DSUE, and filing threshold. For state estate tax or beneficiary-level inheritance tax, use the Inheritance and Estate Tax Calculator. For later sales of inherited or gifted assets, use the Capital Gains Tax Calculator. For a plain-English article on state inheritance and estate-tax differences, read Inheritance Tax vs Estate Tax.
Keep the research moving with Inheritance and Estate Tax Calculator, Capital Gains Tax Calculator, Property Tax Calculator, and Federal Income Tax Calculator.
Frequently Asked Questions
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- 1.IRS - Estate Tax(Accessed May 2026)
- 2.IRS - What is new, Estate and gift tax(Accessed May 2026)
- 3.IRS - 2026 Tax Inflation Adjustments(Accessed May 2026)
- 4.IRS - About Form 706(Accessed May 2026)
- 5.IRS - Form 706(Accessed May 2026)
- 6.IRS - Frequently asked questions on estate taxes(Accessed May 2026)
- 7.IRS - Frequently asked questions on gift taxes(Accessed May 2026)