UPDATED FOR 2026
Federal estate tax (40% above the TCJA exemption) plus 12 state-level estate tax brackets. Returns total tax due plus life insurance face amount needed (typically held in an ILIT) to cover it without forcing illiquid asset sales.
Real estate + investments + business + insurance owned by you (excludes life insurance owned by an ILIT).
Life insurance owned in an Irrevocable Life Insurance Trust passes tax-free to your heirs and is NOT in your estate.
Enter your estate to see your tax liability →
Federal exemption: Calculator uses the 2026 TCJA-extended federal estate tax exemption ($13.99M per individual / $27.98M MFJ with portability). If Congress allowed TCJA to sunset, the exemption drops to roughly $7M individual / $14M MFJ. Top federal rate: 40% on amounts above the exemption.
State estate tax data (2024-2025 confirmed thresholds): WA ($2.193M, 10-20%), OR ($1M, 10-16%), MA ($2M, 0.8-16%), MN ($3M, 13-16%), NY ($7.16M, 3.06-16% with cliff), CT ($13.61M matches federal, 11.6-12%), HI ($5.49M, 10-20%), IL ($4M, 0.8-16%), ME ($7M, 8-12%), MD ($5M, up to 16%), RI ($1.78M, 0.8-16%), VT ($5M, 16%), DC ($4.7M, 11.2-16%). State thresholds adjust annually for inflation; refresh each January.
Inheritance tax states (IA, KY, NE, NJ, PA, MD) are calculated on a per-beneficiary basis depending on relationship; the calculator estimates a 4-12% effective rate on the taxable portion. Spouses are exempt in all 6 states; children/grandchildren typically exempt or low-rate. Verify with state Department of Revenue for actual liability.
What this calculator can't do: generation-skipping transfer (GST) tax, qualified domestic trust (QDOT) for non-citizen spouses, special-use valuation for farms/closely-held businesses, charitable deduction modeling, gift tax history (lifetime taxable gifts reduce the exemption). Estate planning at this level requires a qualified estate attorney.
Estate tax is due 9 months after death — in cash. Life insurance solves the liquidity problem cleanly.
A 60-year-old in good health can fund $5M of permanent life insurance with annual premiums of roughly $100K-$150K. If they live 20+ years, the family pays $2M-$3M for $5M of tax-free liquidity at death. ROI on the life insurance is dramatic.
Without an ILIT, the death benefit ADDS to your taxable estate (taxed at 40% federal plus state) — a $5M policy creates $2M+ of extra tax. ILIT-owned policies pass to heirs OUTSIDE the estate, untaxed. Setup: $2K-$5K in legal fees.
Without liquidity, heirs must sell illiquid assets fast — family business at distressed valuation, real estate at fire-sale prices, or concentrated stock under SEC blackout rules. Insurance funds the tax so the family keeps the assets they value.
If you transfer an existing policy into an ILIT, it must be in the ILIT for 3 years before death to escape estate inclusion (§2035). Strategy: ILIT buys a NEW policy from inception — no 3-year clock. Don't try to retrofit existing policies without legal counsel.
Permanent life insurance funded inside an ILIT is the standard tool for estate-tax liquidity. We work with attorneys to coordinate the structure.