Question 1

What is the federal estate tax exemption?

Accepted Answer

The federal estate tax exemption is the amount you can pass on at death without owing estate tax. In 2024, the exemption is $13.61 million per individual ($27.22 million for a married couple using portability). Amounts above this threshold are taxed at rates up to 40%.

Question 2

What is the estate tax rate?

Accepted Answer

The federal estate tax uses a progressive rate structure with a top rate of 40% on taxable estates (above the exemption). Most estates never owe estate tax due to the high exemption; only the largest 0.1% of estates are affected.

Question 3

What is portability in estate tax?

Accepted Answer

Portability allows a surviving spouse to use any unused estate tax exemption from the deceased spouse. This effectively gives married couples a combined $27+ million exemption, but requires filing an estate tax return to elect it even if no tax is owed.

Question 4

Are there state estate taxes?

Accepted Answer

Yes — 12 states and DC have their own estate taxes, often with much lower exemptions ($1–3 million). Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington all have state estate taxes.

Question 5

Should I work with an estate attorney for estate tax planning?

Accepted Answer

Absolutely. Estate tax planning involves irrevocable trusts, gifting strategies, family limited partnerships, and other sophisticated techniques that require an estate attorney and CPA working together. This calculator provides estimates only — not professional advice.

Estate Tax Calculator