How this number is made
Federal estate tax is 40% of the taxable estate above the basic exclusion, in the simple case, before portability, deductions, and state estate tax. The exclusion is an input because Congress has changed it. The default is a recent large exclusion, not a certified 2026 figure. Confirm it.
- Taxable estate is after deductions the law allows, if you know them.
- Type the exclusion that applies to the year of death. Do not trust the default without checking.
Formula
Tax = 40% × (estate − exemption), and not below zero.
Worked example
With the figures already in the form, tax at 40% of the amount over the exemption is $2,404,000.
Questions
Is the default current?
It is a placeholder on the order of the recent federal basic exclusion. The number has been scheduled to change. Look it up for the year that matters.
What about state estate tax?
Not included. Several states tax estates the federal tax does not touch.