Federal Estate Tax Calculator
(Internal Revenue Code §§ 2001 & 2010)
Federal gift and estate taxes are imposed on the value of property gratuitously transferred by one person to his or her beneficiary(ies), in excess of the applicable exclusion amount. The gift tax applies to lifetime gifts and the estate tax applies to transfers at death. The two systems work together to permit a person to transfer an amount up to the applicable exclusion amount by lifetime gift, transfer at death, or combination of the two without being subject to tax. The value of property transferred in excess of the applicable exclusion amount is then subject to tax. In 2018, the applicable exclusion amount is $11,180,000.oo per person and is indexed to inflation. The tax rate for amounts in excess of the unified credit is a flat 40%.