How we worked it out
Updated as you change the numbers.
- Taxable estate = gross estate − debts and costs − marital and charitable deductions.
- Tax = schedule tax on (taxable estate + lifetime taxable gifts) − schedule tax on the exclusion (the unified credit). Above the exclusion the rate is 40%.
Method and assumptions
The tax uses the unified rate schedule in 26 U.S.C. § 2001(c) (18% up to 40%) on the estate plus lifetime taxable gifts, less the credit for the $15,000,000.00 basic exclusion amount (Rev. Proc. 2025-32) plus any deceased spouse’s unused exclusion. Because the exclusion is far above $1 million, every taxed dollar is taxed at 40%.
Questions
How much estate tax on an $18 million estate in 2026?
With $300,000 of debts and costs and $500,000 to charity, the taxable estate is $17.2 million: $2.2 million over the exclusion, for about $880,000 of tax.
Sources
- IRS Revenue Procedure 2025-32 (2026 inflation adjustments), sections 4.01 and 4.15
- IRS IR-2025-103: inflation adjustments for tax year 2026
- 26 U.S.C. § 2001(c): estate tax rate schedule
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