Assumptions
Change any input and every figure updates.
Current law: $15,000,000 per person in 2026, permanent, indexed for inflation from 2027 (rounded down to $10,000). Top rate 40%.
Estate, exemption and tax over time
Hover or tap the chart to see values by year. The gold marker is the year of life expectancy.
At life expectancy
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Milestones
Estate tax if death occurs in the year shown. The last column is the chance that death has occurred by then (for a couple, both deaths).
How it works
Estate growth. Today's taxable estate compounds at the growth rate you set. Enter the estate net of debts, marital and charitable deductions, and assets already held outside the estate (for example, life insurance in an ILIT).
Exemption. Under the One Big Beautiful Bill Act (signed July 4, 2025) the basic exclusion is $15,000,000 per person for 2026, with no scheduled sunset, and is adjusted for inflation starting in 2027. For a married couple the calculator assumes both exemptions are used through portability or credit shelter planning, so the couple's exemption is twice the per-person amount.
Tax. The tentative tax is figured on the full estate using the graduated rates in IRC §2001(c) (40% above $1 million), then reduced by the unified credit, which is the tentative tax on the exemption. For estates above the exemption, every additional dollar is taxed at 40%.
Timing. For a married couple the tax is assumed due at the second death, after an unlimited marital deduction at the first. Life expectancy is the first year in which the chance of death (both deaths, for a couple) reaches 50%, using the Social Security 2020 Period Life Table. Deaths are assumed independent.
Not included. State estate or inheritance taxes, lifetime taxable gifts already made, GST tax, and valuation discounts.
This represents our understanding of generally applicable rules, based on data provided by the client. The growth rate of the estate and the inflation rate used are hypothetical, are not indicative of any product, and are subject to change. Both may be higher or lower in the future and are not presented as a projection of future performance. Tax laws are subject to change.
This material includes a discussion of one or more tax-related subjects. It is not intended and cannot be used by any taxpayer for the purpose of avoiding any IRS penalties that may be imposed on the taxpayer. Clients should consult their own tax and legal advisors.