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Estate Tax Calculator for Couples

Calculate federal estate tax with portability ($27.98M combined exemption in 2026), state estate tax, and the impact of divorce on your estate plan.

Updated April 2026 IRC §2001/§2010 · Portability Private — runs in your browser
$
$
Federal Estate Tax (at second death)
No Federal Tax
Combined Estate$8,000,000
Combined Exemption$27,980,000
Taxable Amount$0
Tax Rate40%
Passed to Heirs$7,830,400
At First Death$0 (marital deduction)
The unlimited marital deduction eliminates federal estate tax at the first spouse's death when assets pass to a surviving US citizen spouse. Tax is only due at the second death.

Federal Estate Tax for Married Couples

The federal estate tax applies to estates above the exemption threshold at a flat 40% rate. In 2026, each person has a $13.99 million federal exemption, meaning a married couple can effectively shield up to $27.98 million from federal estate tax using portability. Most American families are not subject to federal estate tax at this level.

The unlimited marital deduction means no federal estate tax is due when assets pass from one US citizen spouse to another at death. Tax is only assessed at the surviving spouse's death, on whatever remains above the combined exemption amount.

Estate Tax Formula for Couples

At First Death: Federal Tax = $0 (unlimited marital deduction if assets pass to citizen spouse) At Second Death: Taxable Estate = Combined Estate − Prior Taxable Gifts − Combined Exemption Federal Estate Tax = Max(0, Taxable Estate) × 40% Combined Exemption WITH Portability = $13.99M × 2 = $27.98M Combined Exemption WITHOUT Portability = $13.99M (one exemption only) Portability: Deceased Spouse's Unused Exemption (DSUE) transferred by filing Form 706 within 5 years of first death. State Estate Tax = Max(0, Estate − State Exemption) × State Rate State exemptions range from $1M (Oregon) to $13.99M (Connecticut)

Example Calculation

Example: $8 Million Estate, New York Residents

Combined estate value$8,000,000
Federal exemption (with portability)$27,980,000
Federal taxable amount$0
Federal estate tax$0
NY exemption$6,940,000
NY taxable amount$1,060,000
NY estate tax (est.)~$169,600
Net to heirs$7,830,400

In this example, state estate tax is the primary concern — New York's $6.94M exemption is far lower than the federal exemption. Moving to a state without estate tax could save the family over $169,000.

Frequently Asked Questions

Portability allows the surviving spouse to use the deceased spouse's unused federal estate tax exemption (called the DSUE — Deceased Spouse's Unused Exclusion). This effectively doubles the couple's combined exemption to $27.98 million in 2026. To elect portability, an estate tax return (Form 706) must be filed within 5 years of the first spouse's death, even if no tax is owed at that time.
The elevated exemption was set to sunset to approximately $7 million per person after 2025 under the Tax Cuts and Jobs Act. However, the 2025 tax legislation extended and made permanent the higher exemption levels. As of 2026, the exemption is $13.99 million per person, inflation-adjusted annually. Consult a tax attorney for the latest legislative updates.
Divorce eliminates the unlimited marital deduction — you can no longer transfer unlimited assets to your ex-spouse estate-tax-free at death. Each person must rely solely on their individual $13.99 million exemption. Divorce also typically requires updating wills, trusts, beneficiary designations, and powers of attorney. Failing to update these documents can result in an ex-spouse inheriting assets contrary to your wishes.
As of 2026, 12 states and the District of Columbia have their own estate or inheritance taxes: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. State exemptions are generally much lower than the federal exemption — Massachusetts taxes estates above $2 million and Oregon taxes above $1 million. Six states also have inheritance taxes (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania).
Key strategies include: (1) Annual gifting — each person can give $19,000/year per recipient ($38,000 with gift splitting) tax-free in 2026; (2) Irrevocable life insurance trusts (ILITs) to keep life insurance proceeds out of the estate; (3) Charitable giving through CLATs or CRTs; (4) Qualified Personal Residence Trusts (QPRTs) for the family home; (5) Generation-Skipping Trusts to pass wealth directly to grandchildren. Always work with an estate planning attorney for strategies of this complexity.
Official Sources & Legal References

When to Consult a Tax Professional

Consult a licensed Tax Professional or estate planning attorney if your situation involves: filing Form 706 to elect portability within 5 years of a spouse's death; evaluating bypass trust (Credit Shelter Trust) versus portability for large estates; state estate tax exposure in states with lower exemptions such as Massachusetts or Oregon; or restructuring an estate plan after divorce eliminates the unlimited marital deduction.

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Advanced

Exemption utilization donut chart, portability DSUE visualization, and married vs. divorced estate exposure comparison.

+ Open Advanced Calculator — Exemption Chart & Portability Visualization
Estate Assets & Prior Gifts
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35%used
Spouse 1
$4,950,000 / $13,990,000
24%used
Spouse 2
$3,420,000 / $13,990,000
Combined Estate Tax Analysis
No estate tax at current levels
Combined Estate$7,870,000
Combined Exemption$27,980,000
Taxable Amount$0
Spouse 1 Remaining Exemption$13,490,000
Spouse 2 Remaining Exemption$13,990,000
Professional

TCJA sunset scenario modeling, QTIP vs. Bypass trust comparison, GST tax analysis, and CRT charitable remainder trust planning.

+ Open Professional Calculator — Trust Strategies, GST & Sunset Planning
Future Estate Projection
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%
yrs
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Estate Tax Scenarios
$28,758,698 future estate
Current Law
Combined exemption: $27,980,000
Taxable: $778,698
Tax: $311,479
Post-Sunset (2026)
Combined exemption: $14,400,000
Taxable: $14,358,698
Tax: $5,743,479
Sunset Risk (additional tax)$5,432,000
Charitable Deduction Savings$0
Action Window Before SunsetUse excess exemption now via gifts
Not legal or financial advice. This calculator provides estimates based on published guidelines and formulas. Family law varies by jurisdiction and individual circumstances. Always consult a qualified attorney or financial advisor before making decisions. Full disclaimer · Our methodology