How it works

A useful distinction

Use gross assets with separate deductions

If an estate asset is worth 1,000,000 and carries an allowable 300,000 debt deduction, enter the gross asset and the deduction separately. Entering 700,000 plus the deduction would subtract the debt twice.

Understanding a modeled taxable estate

The estate worksheet starts from the entered assets, adjustments, gifts, and supported credits. Keep estate value separate from the amount potentially subject to tax under the selected federal assumptions. The result is a planning estimate for the stated year and scope. It does not determine asset ownership, valuation disputes, state estate or inheritance taxes, or the effect of an unmodeled trust arrangement.

Federal estate estimate: formula and assumptions

Simplified incremental federal estate tax = 40% × max(0, taxable estate − remaining basic exclusion).

This high-value-estate approximation assumes the top 40% bracket, no prior gift tax payable adjustments, and no portability or treaty adjustments.

2026 estate assets, gifts & credits: formula and assumptions

Estimate = tentative graduated tax on taxable estate plus adjusted gifts − gift-tax adjustment − applicable exclusion credit − other credits.

2026 US citizen/resident scenario using the $15 million basic exclusion. Valuations, deductions, portability elections and credits are supplied assumptions; state and generation-skipping taxes are separate. This is a bounded US federal scenario; it does not produce a completed tax return.

Worked example

Reference example currency: USD. These fixed examples do not change with your calculator preferences.

Using the Federal estate estimate example:

Inputs

Gross estate ($): 18000000
Allowable estate deductions ($): 1000000
Prior taxable gifts using exclusion ($): 0
Available basic exclusion ($): 15000000

Method

Simplified incremental federal estate tax = 40% × max(0, taxable estate − remaining basic exclusion).

Result

Example result

Simplified federal estate tax: $800,000.00

Remaining basic exclusion: $15,000,000.00

Estate after deductions: $17,000,000.00

These are illustrative inputs. Change the values to explore a different scenario.

What to keep in mind

The legacy mode is a top-bracket approximation. Estate assets, gifts & credits uses the graduated tentative-tax schedule and entered Form 706 adjustments within a 2026 US citizen/resident scope. Valuations, deductions, valid portability elections, nonresident rules and state taxes are not established by the calculator.

Formula references

References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.

Common questions

Do both estate modes use only a flat 40% rate?

No. The legacy approximation uses the top rate above its entered exclusion. The detailed assets-and-gifts mode uses the graduated tentative-tax schedule and applicable exclusion credit.

Can I enter a deceased spouse’s unused exclusion?

The detailed mode accepts a valid elected DSUE amount as an assumption. It does not determine portability eligibility or make the required election.

Are state inheritance taxes and all gift adjustments included?

State and generation-skipping taxes are excluded. Adjusted taxable gifts, gift tax payable, deductions and other credits must be supplied after separate verification.

Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.

Estate Tax Calculator

Your inputs