🏛️ Estate Tax Calculator

Calculate estate tax obligations based on estate value and tax rates

Estate Value

Exemption Amount

Tax Rate (%)

40%

Currency

Calculating...

📘 About Estate Taxes

Estate tax is a tax on the transfer of assets from a deceased person to their heirs. It's based on the total value of a person's money and property at the time of death.

How Estate Tax Calculation Works

The basic formula for calculating estate tax is:

Estate Tax = (Estate Value - Exemption) × (Tax Rate / 100)

Key Considerations

Exemption Thresholds: Most jurisdictions have an exemption amount below which no estate tax is owed.
Progressive Tax Rates: Some jurisdictions use progressive tax rates with different brackets.
Marital Deductions: Transfers to spouses are often exempt from estate tax.
International Differences: Estate tax laws vary significantly between countries.

2023 US Federal Estate Tax Rates:

18% on first $10,000

20% on $10,001-$20,000

22% on $20,001-$40,000

24% on $40,001-$60,000

26% on $60,001-$80,000

28% on $80,001-$100,000

30% on $100,001-$150,000

32% on $150,001-$250,000

34% on $250,001-$500,000

37% on $500,001-$750,000

39% on $750,001-$1,000,000

40% on over $1,000,000

Estate Planning Strategies

Gifting: Reduce your taxable estate by gifting assets during your lifetime.
Trusts: Establish irrevocable trusts to remove assets from your taxable estate.
Charitable Donations: Make charitable bequests to reduce taxable estate value.
Life Insurance: Use life insurance proceeds to pay estate taxes.
Family Limited Partnerships: Transfer business interests at discounted values.

❓ Frequently Asked Questions

Estate tax is a tax on the transfer of assets from a deceased person to their heirs. It's based on the total value of a person's money and property at the time of death.

While often used interchangeably, estate tax is levied on the estate itself before distribution to heirs, while inheritance tax is levied on the beneficiaries receiving the assets. The specific terminology and rules vary by jurisdiction.

Estate tax rates vary significantly by country. In the United States, federal estate tax rates range from 18% to 40% for amounts above the exemption threshold ($12.92 million in 2023). Many countries have different rate structures and exemption amounts.

Yes, most jurisdictions have exemption thresholds below which no estate tax is owed. There are also often special provisions for transfers to spouses, charities, and certain types of assets. This calculator allows you to set your own exemption amount.

Common strategies include gifting assets during your lifetime, establishing trusts, making charitable donations, and taking advantage of marital deductions. Consulting with an estate planning professional is recommended for personalized advice.

Japan and South Korea have some of the highest estate tax rates in the world, with top rates of 55% and 50% respectively. France, the UK, and the US also have significant estate taxes, though with high exemption thresholds.

In the United States, estate tax returns (Form 706) are generally due within 9 months of the date of death. Extensions may be available in certain circumstances. Payment of the tax is typically due at the same time as the return.