Practice Tool  ·  By Sean C. Lucas, Esq.

Federal Estate Tax Exposure Estimator

Estimate combined federal + state estate tax exposure for a 2025 or 2026 death. Layered on the 2026 TCJA-reset $15M federal basic exclusion.

Pre-TCJA-reset 2024 estates use $13.61M; not modeled here.
Domicile determines state estate tax exposure. Verify domicile carefully for multi-state clients.
Total value of all assets at date of death (real property, securities, retirement accounts, life insurance owned by decedent, business interests).
Charitable bequests, qualifying marital deduction, debts, funeral and administration expenses. Subtract before applying exclusion.
Total lifetime taxable gifts that used unified credit (above annual exclusions). Reduces remaining basic exclusion.
Portability of deceased spouse's unused exclusion. Adds to the survivor's exclusion. Requires Form 706 filed for the first spouse.
Total Estimated Estate Tax

Enter a gross estate to see your estimate.

Gross estate $0
Less: deductions charitable, marital, debts $0
Taxable estate $0
Plus: lifetime taxable gifts $0
Adjusted taxable estate $0
Less: federal basic exclusion $0
Less: DSUE from predeceased spouse $0
Federal taxable amount $0
Federal estate tax (40% marginal at top) $0
State estate tax $0
Combined estate tax exposure $0
How this is computed
  1. Taxable estate = gross estate − deductions (charitable bequests, qualifying marital deduction, debts, administration expenses).
  2. Adjusted taxable estate = taxable estate + lifetime taxable gifts (the unified gift and estate tax system).
  3. Federal taxable amount = adjusted taxable estate − basic exclusion ($15M for 2026; $13.99M for 2025) − DSUE from a predeceased spouse if any.
  4. Federal estate tax = graduated brackets from 18% on the first $10K of taxable amount up to 40% on amounts over $1M. Most taxable estates hit 40% quickly.
  5. State estate tax = computed on the gross estate above the state-specific threshold. Cliff states (Massachusetts, Illinois, New York) tax the full estate when over threshold.
Disclaimer. This estimator is a planning tool for educational use, not a substitute for professional advice. Federal and state estate tax law is dense and full of exceptions (QTIP elections, generation-skipping transfer tax, qualified family-owned business deduction, special use valuation under §2032A, alternate valuation under §2032, etc.). The 2026 federal $15M exclusion reflects the TCJA-reset baseline and is scheduled to remain through 2034 unless Congress acts. Verify all thresholds with current authorities. Prepared by Sean C. Lucas, Esq., Delaware Bar — not legal advice.

What this tool replaces

The back-of-envelope multiplication that estate planners do at the beginning of every new client engagement, when the client asks "do I have an estate tax problem?" before they have any documents in hand.

For most clients in 2026, the answer is: no federal exposure (the $15M / $30M-married threshold is high), and no state exposure if domiciled in a no-tax state. The clients who do have a problem typically have multi-state exposure, a cliff-state domicile (MA, IL, NY), unused DSUE, or a large lifetime-gifts history that quietly consumed the exclusion.

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