Use this estate tax calculator to get a quick estimate of your potential estate tax liability. Enter the total value of your estate, select your state, and see how federal and state estate taxes could apply.
Estate taxes are owed on the transfer of assets after death, but only when the total estate exceeds certain thresholds. Most estates owe nothing. For those that do, the tax bill can be significant.
This calculator covers federal estate tax plus state estate taxes for Oregon and Illinois. It gives you a planning estimate, not a final number. For precise figures, consult a tax professional or financial advisor.
Estate Tax Calculator
The calculator on this page estimates your estate tax based on a few key inputs:
- Gross estate value. The total fair market value of everything you own at the date of death. This includes real estate, bank accounts, investments, retirement accounts, life insurance proceeds, business interests, and personal property.
- Deductions. Debts, estate administration expenses, and bequests to a surviving spouse or qualified charities.
- Taxable gifts. Lifetime gifts above the annual exclusion that reduce your available exemption.
- State. Whether you live in (or own property in) a state with its own estate tax, such as Oregon or Illinois.
Enter your numbers and the calculator returns a federal estate tax estimate, a state estate tax estimate where applicable, and a combined total.
How the Estate Tax Calculator Works
The calculator follows the same general steps the IRS uses to determine federal estate tax liability, simplified for planning purposes.
- Start with your gross estate. Add up all assets at fair market value.
- Subtract allowable deductions. These include debts, funeral costs, estate administration expenses, the marital deduction (assets passing to a surviving spouse), and charitable donations to qualified charities.
- Add back taxable gifts made during your lifetime. This gives you the combined taxable estate.
- Apply the unified credit (your estate tax exemption amount) against the tax owed.
- The remaining amount, if any, is your estimated federal estate tax liability.
For Oregon and Illinois, the calculator applies each state's separate tax brackets and thresholds. State estate taxes are calculated independently from federal estate tax.
The result is an estimate. It does not account for every possible deduction, trust structure, or valuation adjustment that could change the final number.
Estate Tax Rates
Federal estate tax rates
Federal estate tax uses a graduated rate structure. Rates start at 18% on the first taxable dollars above the exemption and climb to a maximum of 40%.
In practice, most taxable estates pay an effective rate well below 40% because the graduated brackets and unified credit absorb a large portion of the tax.
Here is a simplified look at the top of the federal estate tax rate schedule:
| Taxable amount above exemption | Marginal rate |
|---|---|
| $0 – $10,000 | 18% |
| $10,001 – $20,000 | 20% |
| $20,001 – $40,000 | 22% |
| $40,001 – $60,000 | 24% |
| $60,001 – $80,000 | 26% |
| $80,001 – $100,000 | 28% |
| $100,001 – $150,000 | 30% |
| $150,001 – $250,000 | 32% |
| $250,001 – $500,000 | 34% |
| $500,001 – $750,000 | 37% |
| $750,001 – $1,000,000 | 39% |
| Over $1,000,000 | 40% |
The unified credit effectively zeroes out tax on estates below the exemption threshold. Only the amount above the exemption enters these brackets.
Oregon estate tax rates
Oregon has its own estate tax with rates ranging from 10% to 16%. The brackets apply to the taxable estate above Oregon's much lower threshold (see the exemption section below).
Oregon's rate schedule is separate from the federal system. You can owe Oregon estate tax even if your estate owes nothing to the IRS.
Illinois estate tax rates
Illinois estate tax rates are graduated and can reach up to 16%. Like Oregon, Illinois applies its own threshold and brackets independently.
Illinois uses a unique calculation that references the old federal state death tax credit, which can make the math complex. This calculator simplifies it into an estimate based on current brackets.
Estate Tax Exemption and Threshold
The exemption (also called the threshold or exclusion) is the amount your estate can be worth before any estate tax kicks in. This is the single most important number in estate tax planning.
Federal tax exemption threshold
For 2024, the federal estate tax exemption is $13.61 million per individual. A married couple can shelter up to $27.22 million using portability of the unused exemption from a deceased spouse.
If your total estate (including lifetime taxable gifts) is below this threshold, you owe zero federal estate tax. Only the value above the exemption is taxed.
This exemption is adjusted for inflation each year. However, a major reduction is scheduled for 2026 (more on that below).
Oregon estate tax threshold
Oregon's estate tax threshold is $1 million. This is dramatically lower than the federal exemption.
An estate worth $1.5 million would owe nothing in federal estate tax but could owe Oregon estate tax on the amount above $1 million. This catches many more families than the federal tax does, especially those with real estate in high-value markets.
Illinois estate tax threshold
Illinois sets its estate tax threshold at $4 million. Estates valued above $4 million are subject to the state's graduated rates.
Like Oregon, the Illinois threshold is far below the federal exemption. Estate planning is especially important for residents of states with their own estate tax.
Estate Tax Liability Estimate
How to estimate your estate tax liability
To estimate your potential estate tax liability, gather these numbers:
- Total assets. Add up real estate, investments, bank accounts, retirement accounts, life insurance death benefits, business interests, and personal property. Use fair market value as of today (or projected date of death for planning).
- Total deductions. Include outstanding debts (mortgage, loans), funeral and estate administration expenses, assets left to a surviving spouse, and gifts to qualified charities.
- Lifetime taxable gifts. Any gifts above the annual exclusion ($18,000 per recipient in 2024) that you reported on a gift tax return.
Subtract deductions from total assets. Add back taxable gifts. Compare the result to the applicable exemption. If the total exceeds the exemption, the excess is subject to estate tax.
This calculator does that math for you. Enter your values and get an estimate in seconds.
Gift tax and your estate tax liability
Lifetime taxable gifts reduce the estate tax exemption dollar for dollar. If you gave $2 million in taxable gifts during your lifetime, your remaining federal exemption drops from $13.61 million to $11.61 million.
This is because the gift tax and estate tax share one unified credit. The IRS adds taxable gifts back to your estate at death to calculate the total tax owed, then subtracts any gift tax already paid.
Gift Tax and Estate Tax
How gift tax affects your estate
The federal gift tax and estate tax are part of the same system. Large lifetime gifts consume part of your estate tax exemption. This means aggressive gifting without planning can increase the estate tax liability your heirs face.
However, strategic gifting can also reduce your taxable estate. Assets given away during your lifetime (and any future appreciation on those assets) leave your estate entirely.
Gift tax exemption
You can give up to $18,000 per recipient per year (2024) without reporting anything or using any of your lifetime exemption. This is the annual gift tax exclusion.
Gifts above the annual exclusion must be reported on IRS Form 709 (gift tax return). They count against your lifetime unified credit of $13.61 million. No actual gift tax is owed until you exhaust that full credit.
Married couples can combine their exclusions, giving up to $36,000 per recipient per year without touching the lifetime exemption.
Estate Planning and Your Estate
Assets that count toward your estate
Your gross estate includes nearly everything you own or control at the date of death:
- Real estate (primary home, rental properties, vacation homes)
- Bank accounts and cash
- Investment and brokerage accounts
- Retirement accounts (401(k), IRA, pension)
- Life insurance death benefits (if you own the policy)
- Business interests and ownership stakes
- Vehicles, jewelry, art, and collectibles
- Trust assets (depending on the type of trust)
The IRS uses fair market value at the date of death, or an alternate valuation date six months later if the executor chooses it.
Life insurance and your estate
Life insurance death benefits are included in your gross estate if you own the policy. A $1 million policy adds $1 million to your estate's value for tax purposes.
One common estate planning strategy is transferring policy ownership to an irrevocable life insurance trust (ILIT). This removes the proceeds from your taxable estate. The transfer must happen at least three years before death to be effective.
Retirement accounts and your estate
IRAs, 401(k)s, and other retirement accounts are part of your gross estate. Their full value at the date of death counts toward the estate tax calculation.
Beneficiaries may also owe income tax on distributions from inherited retirement accounts. This creates a potential double layer of taxation, though an income tax deduction for estate taxes paid can offset some of that burden.
Estate Tax in Oregon
Oregon is one of a handful of states with its own estate tax, and its $1 million threshold is among the lowest in the country. Many Oregon residents with a home, retirement savings, and life insurance can cross this threshold.
Oregon estate tax rates range from 10% to 16% on the taxable estate above $1 million. The tax applies to Oregon residents and to non-residents who own real estate or tangible property in Oregon.
Oregon does not offer portability of the unused exemption between spouses. Each individual gets only the $1 million threshold. Estate planning for married couples in Oregon often involves trust strategies to preserve both exemptions.
This calculator includes Oregon's brackets so you can estimate your combined federal and state estate tax liability.
Estate Tax in Illinois
Illinois imposes an estate tax on estates exceeding $4 million. Rates can reach 16%, though the effective rate varies based on estate size.
Like Oregon, Illinois does not allow portability of the state exemption between spouses. Planning with trusts is a common approach for married couples.
Illinois residents should note that the state uses a calculation tied to the old federal state death tax credit formula. This makes the actual computation less straightforward than a simple percentage. The calculator simplifies this into an estimate based on current effective rates.
Estate Tax Changes in 2026
The current federal estate tax exemption of $13.61 million is set to expire after December 31, 2025. Without new legislation, the exemption will drop to roughly $7 million per person (adjusted for inflation) starting in 2026.
This is a major reduction. Estates that are well below today's threshold could become taxable under the lower exemption.
What this means in practice:
- An individual with a $10 million estate owes zero federal estate tax in 2024.
- Under the projected 2026 exemption, that same estate could face a tax bill on approximately $3 million.
If your estate is between $7 million and $14 million, the 2026 change deserves attention now. Estate tax planning strategies, including gifting, trusts, and life insurance restructuring, take time to implement.
Congress could extend the current exemption, modify it, or let it expire. No one knows yet. Planning for the lower number is the conservative approach.
Estimate only: what this calculator does not cover
This estate tax calculator provides a planning estimate. It is not a substitute for professional tax advice, legal counsel, or a formal estate tax return.
Things the calculator does not account for:
- Special use valuation for farms and closely held businesses
- Qualified conservation easements
- Generation-skipping transfer tax (GST)
- Specific trust structures and their tax treatment
- State estate taxes beyond Oregon and Illinois
- Detailed debt and expense verification
- Valuation discounts for business interests or fractional ownership
Estate tax returns (IRS Form 706) require precise asset valuation, often including professional appraisals. The IRS may adjust values and challenge deductions during review.
For estates near or above the exemption threshold, work with a financial advisor, estate planning attorney, or CPA. Use this calculator as a starting point to understand whether estate tax could apply to your situation, then consult a professional for a complete analysis.