Inheritance & Estate Tax Calculator
Model the tax effect of a taxable estate or inheritance amount after first accounting for applicable exclusions, deductions, beneficiary exemptions, and asset-specific rules. The calculator applies the rate you enter as a flat scenario. For 2026, the federal basic exclusion amount is $15 million per individual.
On this page: Calculator · 2026 exemptions & rates · How it works · State inheritance taxes · FAQs
Inheritance & estate tax calculator
Enter the taxable amount you want to model after applicable exclusions or exemptions, then enter an estimated tax rate.
Taxable amount modeled: $
Estimated tax: $
Net after modeled tax: $
Effective tax rate entered: %
For inherited IRA distributions or investment income reported on an individual return, H&R Block↗ offers tax-filing assistance. Federal estate-tax Form 706 follows separate filing rules. Affiliate link.
2026 federal estate tax: exclusion and rate
The 2026 federal basic exclusion amount is $15 million per individual. The estate tax is calculated under the federal transfer-tax system after accounting for taxable lifetime gifts, deductions, credits, and the available exclusion. The federal government does not impose a separate inheritance tax on beneficiaries.
How the 40% federal estate-tax rate works
The statutory estate-and-gift tax schedule is graduated and reaches 40% once the taxable transfer base exceeds $1 million. Because the 2026 basic exclusion is far above that point, an additional taxable dollar above a fully available $15 million exclusion is generally in the 40% marginal bracket. Actual Form 706 liability can differ because prior taxable gifts, the marital or charitable deduction, valuation rules, credits, and portability affect the calculation.
Example: if a decedent has a $16 million taxable estate, no prior taxable gifts, no further deductions, and the full $15 million exclusion available, the additional $1 million above the exclusion is generally exposed to the 40% marginal estate-tax rate. Do not apply 40% to the entire $16 million.
Key federal amounts for 2026
| Federal item | 2026 amount / rule |
|---|---|
| Basic exclusion amount | $15,000,000 per individual |
| Potential combined exclusion for a married couple | Up to $30,000,000 if portability is properly elected and exclusion remains available |
| Annual gift-tax exclusion | $19,000 per recipient |
| Top estate-and-gift tax rate | 40% |
Portability is not automatic; the deceased spouse's unused exclusion generally requires a timely estate-tax return/election. See the IRS estate-tax overview and 2026 inflation adjustments.
How estate and inheritance taxes work
Estate tax and inheritance tax are separate systems, and this distinction matters before you choose an amount or rate for the calculator.
- Estate tax is imposed on the estate before assets are distributed. Federal estate tax and several state estate taxes use exclusions and deductions before tax is calculated.
- Inheritance tax is imposed on a beneficiary by certain states. The rate and exemption can depend on the beneficiary's relationship to the decedent.
As of 2026, five states impose an inheritance tax: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Iowa's inheritance tax has been eliminated for deaths occurring on or after January 1, 2025. Maryland is the only jurisdiction in this group that also imposes a state estate tax.
Stepped-up basis on many inherited assets
Many inherited capital assets receive a basis based on fair market value at the date of death (or another permitted valuation date), which can reduce capital gain attributable to appreciation during the decedent's lifetime. Exceptions and special valuation rules exist. If stock inherited at a $100,000 basis is later sold for $110,000, the post-inheritance gain is generally $10,000 before other adjustments.
Inherited IRAs and 401(k)s are different
Traditional retirement accounts generally do not receive the same basis reset as ordinary capital assets. Taxable inherited-account distributions generally are ordinary income. Many non-spouse designated beneficiaries use a 10-year distribution rule, while spouses and other eligible designated beneficiaries can have different options; annual RMD requirements can also depend on the original owner's required-beginning-date status. See IRS beneficiary guidance.
State inheritance and estate taxes
State transfer taxes can apply at thresholds far below the federal $15 million exclusion. For 2026, twelve states plus Washington, D.C. impose an estate tax, while five states impose an inheritance tax. Maryland has both. The table below uses 2026 figures compiled in Tax Foundation's Facts & Figures 2026; individual state rules, deductions, and beneficiary classes still need to be checked.
States with estate tax (2026)
| State | Exemption / exclusion | Top rate |
|---|---|---|
| Connecticut | $15.0M | 12% |
| Hawaii | $5.49M | 20% |
| Illinois | $4.0M | 16% |
| Maine | $7.0M | 12% |
| Maryland | $5.0M | 16% |
| Massachusetts | $2.0M | 16% |
| Minnesota | $3.0M | 16% |
| New York | $7.35M | 16% |
| Oregon | $1.0M | 16% |
| Rhode Island | $1.838056M | 16% |
| Vermont | $5.0M | 16% |
| Washington | $3.076M | 35% |
| Washington, D.C. | $4.9884M | 16% |
States with inheritance tax (2026)
| State | Spouse | Children / close lineal heirs | Top rate |
|---|---|---|---|
| Kentucky | Exempt | Generally exempt as Class A beneficiaries | 16% |
| Maryland | Exempt | Generally exempt for lineal family | 10% |
| Nebraska | Exempt | $100,000 exemption, then 1% for immediate relatives | 15% for other beneficiary classes |
| New Jersey | Exempt | Generally exempt as Class A beneficiaries | 16% |
| Pennsylvania | Exempt | Generally 4.5% for lineal heirs, with limited exceptions | 15% |
Source for the 2026 state table: Tax Foundation Facts & Figures 2026. State statutes can change, and estate size, domicile, asset location, beneficiary class, and deductions can alter the result. Verify the relevant state authority before filing or planning.
Estate and inheritance tax planning tools
Large or complex estates benefit from professional guidance. For the income tax portion of an inherited estate — retirement accounts, sold assets, trust distributions — tax software can help with income-tax items reported by an individual beneficiary; estate fiduciary and Form 706 filings can require separate professional guidance.
TurboTax↗ — supports individual tax reporting for inherited retirement distributions and investment transactions
H&R Block↗ — file with a tax professional for complex inheritance situations involving multiple asset types
FreeTaxUSA↗ — low-cost filing for straightforward inherited account distributions and investment income
Affiliate links — we may earn a commission at no cost to you.
Related retirement and tax calculators
- Retirement withdrawal tax calculator Estimate income tax on inherited IRA and 401(k) distributions
- Early retirement withdrawal tax calculator Model tax + possible 10% additional tax on early distributions from your own retirement accounts
- Retirement tax calculators — all tools Full overview of withdrawal, early distribution, and inheritance calculators
- Capital gains tax calculator Estimate tax on inherited assets sold after the step-up in basis
- Windfall & settlement tax calculator Estimate tax on large one-time receipts including legal settlements
Inheritance & estate tax: FAQs
What is the difference between estate tax and inheritance tax?
Estate tax is imposed on the estate before assets are distributed, while inheritance tax is imposed on certain beneficiaries under state law. The federal government has an estate tax but no inheritance tax. In 2026, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania impose inheritance taxes; Iowa no longer does for deaths on or after January 1, 2025.
How much can you inherit without paying federal estate tax in 2026?
The 2026 federal basic exclusion amount is $15 million per individual. Federal estate tax is a tax on the decedent's taxable estate, not a tax automatically billed to a beneficiary on each inheritance. A surviving spouse may be able to use a deceased spouse's unused exclusion through a valid portability election, potentially bringing the combined available exclusion to as much as $30 million.
Do beneficiaries pay estate tax?
Federal estate tax generally is paid by the estate, not directly by beneficiaries. A beneficiary can still face a state inheritance tax in Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania depending on relationship, exemptions, and the amount received. Income generated by inherited property can also create separate income-tax obligations.
Are inherited assets taxed when sold?
Many inherited capital assets receive a basis tied to fair market value at death, so capital gain after inheritance is generally measured from that adjusted basis rather than the decedent's original purchase price. Exceptions and special basis rules exist. Inherited traditional retirement accounts follow different income-tax rules.
Is inheritance taxed as income?
A cash inheritance generally is not ordinary income to the beneficiary for federal income-tax purposes. Income produced after inheritance, such as interest, dividends, rent, or taxable distributions from an inherited traditional IRA or 401(k), can be taxable. State inheritance tax is a separate issue from federal income tax.
Does this calculator include exemptions?
No. It multiplies the taxable amount you enter by the rate you enter. Before using it, determine what amount remains after the relevant federal or state exclusion, deduction, beneficiary exemption, or other rule. It does not prepare Form 706 or determine beneficiary classifications.