How Much Estate Tax Could I Owe?
This calculator helps you estimate the tax liability associated with your estate.
One of the most important financial planning tasks that many Americans should perform is to properly manage their potential estate tax liability. This is one area of personal financial planning for which consumers should seek out professional advice. However, a helpful first step that any individual can perform is to calculate an estimate of the overall value of their estate, and their potential tax liability as of “today”.
Estate tax laws may change over time, but there are some key components of estate taxes that individuals should be aware of. These include:
- Lifetime Gift Tax Exclusion: In 2017, individuals are allowed to gift up to $5.49 million over their lifetime without any tax implications. This limit is based on individuals, not families, so a husband and wife could both gift up to $5.49 million during their lifetime, for a total of $10.98 million. Gift amounts beyond this can be taxed up to a maximum of 40%.
- Annual Exclusion Amount: Individuals can gift up to $14,000 per year to anyone with no tax implications.
- Gift Tax Exclusions: Some gifts are excluded from the tax exclusions above (i.e., are not taxable, and don’t count towards the limits). These include gifts to spouses, gifts to charities and political organizations, and medical and tuition expenses if they are paid directly to the provider.
The Estate Tax Calculator below will help you estimate the current value of your estate, as well as the potential current-year tax liability on that estate. While this will provide some general direction, it is always wise to seek advice from a professional financial advisor to help you construct a detailed estate tax strategy.