US Federal + State Estate & Inheritance Tax (2026)

Federal estate tax with the $15M permanent OBBBA exemption and spousal portability (DSUE), the 12 states + DC that impose a separate estate tax (Oregon's $1M threshold is the lowest in the country), and the 6 inheritance-tax states where the bill follows the beneficiary, not the estate.

Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →

Estate & filing details

Gross estate, deductions, and the state of domicile that drives the second tax layer.

Gross estate value

Filing status

State of domicile

Prior lifetime taxable gifts

Gifts exceeding the annual exclusion — reduces federal exemption.

Marital deduction

Charitable deduction

Debts, expenses, funeral

Use spousal DSUE (portability) — doubles to $30M

Death tax breakdown

Gross estate$25,000,000

Deductions (marital + charity + debts)($250,000)

Taxable estate$24,750,000

Available federal exemption$15,000,000

Federal taxable above exemption$9,750,000

Federal estate tax (40%)$3,900,000

State estate tax — New York (16.00% top marginal)$3,960,000

Total death tax$7,860,000

Effective rate on gross estate31.44%

Net to beneficiaries$17,140,000

NY 105% cliff triggered

Your taxable estate exceeds 105% of New York's $7,160,000 threshold, so the entire estate is subject to state estate tax — the exemption credit is lost. This is the so-called "cliff," and it is why NY estate planners aggressively target the threshold with charitable bequests just before the cliff.

2026 annual gift exclusion

Use it or lose it — gifts within the annual exclusion never touch the lifetime exemption.

Per donee, per year$19,000

Gift-splitting (married couples elect on Form 709)

Effective per donee$19,000

Lifetime exemption is shared with the estate exemption: $15,000,000 per individual ($30M per couple with portability). Made permanent by OBBBA — no TCJA sunset in 2026.

State layer at a glance

Lowest threshold: Oregon ($1M). Most aggressive East Coast: Massachusetts ($2M). Highest top rate: Washington (20%). Cliff state: New York (105%).

Inheritance-tax states (6): IA (phased out), KY, MD, NE, NJ, PA. Spouses are universally exempt; the rate ladder climbs by distance of kinship.

Tax year 2026 · USD · OBBBA permanent law

Formula: Federal estate tax = max(0, taxable estate − available exemption) × 40%. State estate tax = max(0, taxable estate − state threshold) × state top rate, except NY cliff which taxes the entire estate when above 1.05× threshold. State inheritance tax = beneficiary share × class rate. Available federal exemption = (single $15M or couple $30M with portability) − prior taxable gifts.

Assumptions

Federal unified credit exemption: $15,000,000 per individual, permanent under OBBBA (no 2026 TCJA sunset).
Portability (DSUE) requires a timely-filed Form 706 for the first deceased spouse, regardless of whether tax was owed.
Federal rate is approximated as a flat 40% above the exemption — the graduated table tops out at 40% well below the exemption amount so the marginal rate above is always 40%.
Annual gift exclusion: $19,000 per donee, doubled to $38,000 with married gift-splitting.
State estate-tax rates are simplified to a single top marginal rate above the threshold — actual schedules are graduated and may produce somewhat lower bills below the top bracket.
Inheritance-tax rates are top-bracket approximations; KY, NE, and NJ have multiple sub-classes and small exemption amounts not modelled here.
Iowa's inheritance tax has been fully phased out as of January 1, 2025; included for legacy estate planning context only.
This calculator is for planning education and does not generate a Form 706, Form 709, or any state estate/inheritance return.

Estimates only — not tax advice. Brackets, deductions and thresholds reflect the locked 2026 federal configuration. State amounts use each state's posted 2026 top-line rules and may differ from a full state-form computation. Always confirm complex situations with a qualified CPA, EA, or tax attorney.