Will & Inheritance Tax Calculator

No. There is no federal inheritance tax, and only six states impose one (Iowa - phasing out, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Spouses and often children are exempt or taxed at low rates; more distant heirs and non-relatives face higher rates (up to 18% in some states).

It applies only to estates exceeding $13.61M per individual (2024), or about $27.22M for a married couple using portability. The top rate is 40%. The exemption is scheduled to drop to roughly $7M in 2026 absent congressional action, which will significantly expand the number of taxable estates.

Inheritances themselves are not subject to federal income tax. However, retirement accounts (traditional IRAs, 401(k)s) generate ordinary income to the beneficiary as withdrawn, and inherited assets generally receive a "step-up" in basis to date-of-death value, eliminating built-in capital gains.

As soon as you have minor children, significant assets, a business, real estate in multiple states, blended-family considerations, or are nearing or above the estate-tax exemption. Basic plans (will, power of attorney, healthcare directive) typically cost $500-$2,500; trust-based plans $2,500-$7,500+.