Estate Tax Calculators Texas

Texas Estate Tax Calculator

Calculate estate and inheritance tax in Texas. No state estate tax. Federal exemption $13.61M. Free calculator.

By StateCalc Team

| Updated Jan 15, 2026 | Fact-checked

Use Calculator Free — No Sign-up Verified Data 346 Tests Passing Updated Jan 2026

Texas Quick Facts

None Income Tax Rate

1.80% Property Tax Rate

$67,321 Median Income

93.9 Cost of Living

How This Calculator Works

Calculation methodology and assumptions

Estate tax calculator for Texas. Texas has no state estate or inheritance tax — only federal estate tax applies. Federal estate tax exemption: $13.61M (2026), with rates from 18-40% on amounts above the exemption. Unlimited marital deduction applies to spousal transfers. Charitable bequests are fully deductible.

Key State Information

Texas estate tax facts: Texas has no state estate or inheritance tax — only federal estate tax applies. Median home value: $310,000. Without state estate tax, Texas is favorable for estate planning.

Standard financial formulas Pre-filled with real state data Estimates only — not financial advice

Data Source

Tax Foundation, IRS

View Original Source | Verified Apr 13, 2026 | Updated annually

How to Use This Estate Tax Calculator

1

Enter the total estate value

Include all assets: real property, investments, bank accounts, retirement accounts, life insurance proceeds, business interests, and personal property.
2

Subtract allowable deductions

Enter funeral expenses, debts owed by the deceased, administrative costs, and charitable bequests. The marital deduction (unlimited spousal transfer) is the most powerful tool.
3

Review the federal exemption

The 2026 federal estate tax exemption is approximately $7 million per person ($14 million married). Estates below this threshold owe zero federal estate tax.
4

Check state estate tax

Texas Estate Tax impose separate estate taxes with much lower exemptions — often $1–$5.85 million. The calculator automatically applies Texas Estate Tax's rules.
5

Analyze the tax liability

Review both federal and state estate tax separately. The federal rate is 40% on amounts above the exemption; state rates vary from 0.8% to 16%.

Example Calculation

Let's calculate estate tax for a typical high-net-worth estate in Texas Estate Tax.

Consider a $10 million estate. After subtracting $200,000 in debts, funeral costs, and administrative expenses, the taxable estate is $9.8 million. The 2026 federal exemption of ~$7 million leaves $2.8 million subject to federal estate tax at 40%. If Texas Estate Tax has a $5.85 million exemption with a 16% top rate, the state tax adds another layer.

Result: Federal estate tax: approximately $1,120,000. State estate tax (if applicable): $300,000–$630,000 depending on the state's rate structure. Total combined tax could reach $1.5–1.75 million on a $10 million estate. This is why estate planning with trusts, lifetime gifting ($18,000/year per recipient exclusion), and life insurance strategies is essential for estates approaching these thresholds.

What Affects Your Results

Federal Exemption Amount

The exemption is inflation-adjusted annually and is set to decrease significantly in 2026 when TCJA provisions sunset. Planning should account for both current and future exemption levels.

State Estate Tax

Only 12 states and DC impose estate taxes, but their exemptions are much lower ($1M–$5.85M). Texas Estate Tax has one — it can add 10–16% on top of federal rates.

Asset Composition

Illiquid assets (real estate, business interests) can create cash-flow problems for paying estate tax. Life insurance or liquidity planning helps heirs avoid forced asset sales.

Marital Status

The unlimited marital deduction means no estate tax on spousal transfers. Portability of the unused exemption and proper trust planning maximize the benefit.

Prior Lifetime Gifts

Taxable gifts made during your lifetime reduce your available estate tax exemption. Track cumulative gifts above the annual exclusion ($18,000/person) carefully.

Tips for Texas Estate Tax Residents

The 2026 federal exemption drop (from ~$13M to ~$7M) is a major planning deadline. If your estate is between $7M and $13M, consult an estate attorney immediately about lifetime gifting strategies.
Check if Texas Estate Tax has a separate estate or inheritance tax. 12 states plus DC impose estate taxes, and 6 states impose inheritance taxes (which tax the recipient, not the estate).
Life insurance proceeds are included in your estate if you own the policy. An Irrevocable Life Insurance Trust (ILIT) removes these from your taxable estate.
Portability allows a surviving spouse to use any unused portion of the deceased spouse's federal exemption — but you must file an estate tax return to elect portability, even if no tax is owed.
Charitable remainder trusts (CRTs) can provide lifetime income while removing appreciated assets from your estate. Work with a qualified estate planning attorney.

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StateCalc Team

Editorial Team

The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.

Our editorial standards

Frequently Asked Questions

Does Texas have an estate tax?

No. Texas does not have a state estate or inheritance tax. Only the federal estate tax applies (exemption: $13.61M).

How can I reduce estate tax in Texas?

Key strategies: (1) Maximize the marital deduction for spousal transfers, (2) Make annual gift tax exclusion gifts ($18,000/recipient/year), (3) Use charitable bequests, (4) Establish irrevocable trusts, (5) Move life insurance to an ILIT. Since Texas has no state estate tax, federal planning is the main focus.