Federal Estate Tax Calculator - 2004 Law

by Guest Blogger, 4/13/2004

How much do people pay in estate taxes? Use the calculator below to find out.

function calculate(form)
{
var valid = 1;
var estate_value, charity, taxable_estate, estate_tax, bypass;
var tax_10;
var unified_credit, exemption;
var temp;

unified_credit = 555800;
exemption = 1500000;

if(form.estate_value.value.length == 0)
estate_value = 0.0;
else
estate_value = eval(form.estate_value.value);

if(form.charity.value.length == 0)
charity = 0.0;
else
charity = eval(form.charity.value) * estate_value;

if(form.marital_status.value == "married")
taxable_estate = estate_value - charity - exemption;
else
taxable_estate = estate_value - charity;

if(taxable_estate < 0.0)
taxable_estate = 0.0;

form.taxed_estate.value = "$" + Math.max((taxable_estate-exemption),0);

if(taxable_estate <= 1500000)
estate_tax = 0.0;

if(1500000 < taxable_estate && taxable_estate <= 2000000)
estate_tax = 555800 + ((taxable_estate - 1500000) * 0.45) - unified_credit;

if(taxable_estate > 2000000)
estate_tax = 780800 + ((taxable_estate - 2000000) * 0.48) - unified_credit;

if(estate_tax < 0.0)
estate_tax = 0.0;

if (estate_tax == 0)
form.estate_tax.value = "Nothing!";
else
form.estate_tax.value = "$" + estate_tax;

form.estate_tax_rate.value = "" + Math.round((estate_tax/estate_value)*100) + "%";

}

Instructions: Select the marital status, the value of the estate, and the amount given to charity:

Marital status:

Married
Single

Total value of estate(assets less debt):

$50,000.00
$100,000.00
$500,000.00
$700,000.00 - Top 2%
$1,000,000.00
$1,500,000.00
$1,800,000.00 - Top 0.5%
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$10,000,000.00 - Top 0.05%
$25,000,000.00 - Top 0.01%

Charitable bequests(if any):

None
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

of net estate value.

Maximum Estate Tax Owed by Heirs*: , or of the estate.

*Note: 2004 law includes a $1.5 million exemption level per person, and a top marginal tax rate of 48%. Other provisions, such as owning a family farm or business, environmentally protected land, etc., will likely lower the total tax bill.

Wealth thresholds from Wojciech Kopczuk and Emmanuel Saez, based on estate tax returns.