Federal Estate Tax Calculator

The TCJA exemption sunset on December 31, 2025 cut the federal estate-tax exemption roughly in half - from approximately $13.99 million per person in 2025 to approximately $7 million per person in 2026 (indexed to inflation). Married couples can effectively double that to ~$14 million with proper portability planning. Estates above the exemption pay 40% federal tax on the excess.

Portability lets a surviving spouse "inherit" the unused portion of a deceased spouse's estate-tax exemption (called the Deceased Spousal Unused Exclusion, or DSUE). It must be elected by filing Form 706 within 9 months of death (15 months with extension) - even when no tax is due. Skipping the filing forfeits the DSUE permanently, which can cost the family millions later.

Form 706 (U.S. Estate Tax Return) is required when the gross estate plus adjusted taxable gifts exceeds the basic exclusion amount (~$7M in 2026). It is also filed to elect portability even if no tax is due. The form is due 9 months after death; a 6-month extension is available. Penalties for late filing apply to any unpaid tax.

Transfers to a US citizen spouse pass estate-tax-free under the unlimited marital deduction. Transfers to a non-citizen spouse do NOT qualify - those use a separate $185,000 annual exclusion (2026 estimate) or require a Qualified Domestic Trust (QDOT). Planning gets significantly more complex when one spouse is non-citizen.