Estate Tax Calculator 2025
Calculate federal and state estate tax liability with 2025 exemptions and rates. Plan your estate with professional tax analysis, exemption optimization, and wealth transfer strategies.
Calculate Your Estate Tax
Enter your estate information to calculate potential federal and state estate tax liability, analyze exemption usage, and explore planning strategies for 2025.
Understanding Estate Tax in 2025
The federal estate tax applies to estates exceeding $13.99 million per individual. Proper planning can minimize tax liability through exemptions, deductions, and strategic wealth transfer techniques.
2025 Estate Tax Key Figures
- Federal exemption: $13.99 million per individual
- Married couple exemption: $27.98 million (with portability)
- Federal tax rate: 40% on amounts above exemption
- Annual gift exclusion: $18,000 per recipient
- Lifetime gift exemption: Unified with estate exemption
State Estate Tax Considerations
Twelve states plus D.C. impose their own estate taxes with varying exemption amounts and rates. Some states have much lower exemption thresholds than the federal government.
- Massachusetts: $2 million exemption, up to 16% rate
- New York: $6.94 million exemption, up to 16% rate
- Connecticut: $12.92 million exemption, up to 12% rate
- Washington: $2.193 million exemption, up to 20% rate
- Planning Impact: State taxes require separate analysis and strategies
- Residence Changes: Moving can affect estate tax exposure
Estate Planning Strategies for 2025
Strategic estate planning can significantly reduce tax liability through various techniques including gifting, trusts, charitable giving, and business succession planning.
Key Planning Techniques
- Annual Gifting: Use $18,000 annual exclusion per recipient
- Lifetime Gifts: Transfer assets using federal exemption
- Charitable Giving: Reduce taxable estate through charitable bequests
- Trust Strategies: Irrevocable trusts for tax-efficient wealth transfer
Sunset Provision Planning
The current high exemption expires after 2025, making strategic planning urgent for high-net-worth individuals.
Frequently Asked Questions
What is the federal estate tax exemption for 2025?
The federal estate tax exemption for 2025 is $13.99 million per individual ($27.98 million for married couples). Estates valued below this threshold are not subject to federal estate tax.
What is the federal estate tax rate in 2025?
The federal estate tax rate for 2025 is 40% on the amount above the exemption threshold. This applies to the taxable estate after deductions and exemptions are applied.
Which states have their own estate taxes?
As of 2025, twelve states plus Washington D.C. impose state estate taxes: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Each has different exemption amounts and rates.
How do lifetime gifts affect estate taxes?
Lifetime gifts above the annual exclusion ($18,000 per recipient in 2025) reduce your available estate tax exemption. Large gifts may require paying gift tax or use up your unified gift and estate tax exemption.
What assets are included in an estate for tax purposes?
The taxable estate includes all assets owned at death: real estate, investments, business interests, life insurance proceeds, retirement accounts, and personal property, minus allowable deductions like debts and charitable bequests.
When is the estate tax exemption scheduled to change?
The current high exemption is scheduled to sunset after 2025, potentially reverting to approximately $7 million per person (adjusted for inflation) in 2026 unless Congress acts to extend or modify the current law.