Arizona Estate Tax Calculator
Estimate the federal estate tax on an Arizona decedent’s estate and confirm that Arizona itself charges nothing. Arizona has no estate tax, no inheritance tax and no gift tax; its old statute imposed only a pick-up tax equal to the federal state death tax credit, which no longer exists. Arizona’s distinctive rules that this calculator does model are community property (only the decedent’s half enters the gross estate), the graduated spousal elective share (3% to 50% by years of marriage), and the small-estate affidavit. Three modes: estimate the tax, test a larger estate, or solve for the years of gifting needed to reach zero. Fields marked * are required; Calculate names any left empty.
Federal: unified estate and gift schedule topping at 40%; basic exclusion $13,610,000 (2024), $13,990,000 (2025), $15,000,000 (2026); federal portability (DSUE) allowed; unlimited marital and charitable deductions; GST 40%.
Exclusion and portability
Gross estate to taxable estate
Tax computation
What heirs receive
Arizona succession
Gifting analysis
Three-year gifting projection
How it works
- Arizona charges nothing. The Arizona estate tax statute imposed only a pick-up tax equal to the federal state death tax credit; that credit was eliminated for deaths after 2004, so the Arizona estate tax is $0 and no Arizona estate tax return is filed. There is no Arizona inheritance tax and no Arizona gift tax.
- Only federal transfer taxes apply. The federal estate tax applies above the basic exclusion using the unified 18% to 40% schedule, and the federal GST applies at 40% to direct skips above the allocated GST exemption.
- Community property is halved. Arizona is a community property state, so only the decedent’s one-half of community assets enters the gross estate; community assets also receive a double basis step-up at death (IRC 1014(b)(6)).
- Portability is federal only. A surviving spouse may inherit the unused federal exclusion (DSUE) with a timely Form 706 election; there is no Arizona state exclusion to port.
- The elective share is graduated. Under A.R.S. 14-2201 the surviving spouse’s elective share rises from 3% of the augmented estate for a marriage under one year, by 3 percentage points per year, to 45% at 14 years and 50% at 15 or more years. This calculator approximates the augmented estate with the net estate.
- Small estates skip full probate. Collection by affidavit under A.R.S. 14-3971 is available where personal property is $100,000 or less; real property of $200,000 or less may also pass by affidavit after six months. Verify current figures.
- Binding factor names what controls the result: the federal basic exclusion, the federal unified schedule above it, or the GST.
- Gifting mode uses the guarded bisection solver (60 expansions, 90 iterations, rounded up) to find the years of annual-exclusion gifting that bring the taxable estate to the exclusion or below.
- Gifting is not free. Carryover basis loses the step-up; the deferred gain is netted against the tax saved.
Sources
- A.R.S. Title 43 Ch. 14 (estate tax pick-up statute, inoperative for deaths after 2004 because the IRC 2011 credit was eliminated); Arizona Department of Revenue guidance confirming no state estate, inheritance or gift tax.
- A.R.S. 25-211 et seq. (community property); A.R.S. 14-2201 (graduated spousal elective share over the augmented estate); A.R.S. 14-3971 (small-estate affidavit, personal property $100,000 and real property $200,000 limits; verify current figures); A.R.S. 14-3205 (venue in Superior Court of county of domicile).
- IRC chapter 11 unified schedule and exclusion ($13,610,000 / $13,990,000 / $15,000,000 for 2024 / 2025 / 2026); IRC 2010 portability; IRC 2042 life insurance inclusion; IRC 2055 charitable deduction; IRC 1014(b)(6) community property double step-up; IRC chapter 13 GST at 40%; IRC 1015 carryover basis.
- IRS Form 706 and Form 4768 instructions (9-month deadline, 6-month filing extension).
Test cases
Community share 600,000; gross 1,500,000; admin 27,400; deductions 189,400; net estate 1,310,600; TE 1,310,600 below 13,990,000. Federal $0, Arizona $0, TOTAL $0. Headroom 12,679,400; ceiling 14,179,400. Affidavit NOT available (personal property 500,000). Elective share 39% = 511,134.
Gross 20,000,000; admin 390,400; deductions 910,400; net estate 19,089,600; TE 19,000,000. Federal tentative 7,545,800 less credit 5,541,800 = FEDERAL 2,004,000. Arizona $0. TOTAL 2,004,000. Effective 10.02%.
Community share 10,000,000; gross 26,000,000; admin 512,400; deductions 937,400; net estate 25,062,600; less marital 8,000,000 = TE 17,062,600; federal exclusion 16,990,000. Federal tentative 6,770,840 less credit 6,741,800 = FEDERAL 29,040. Arizona $0. TOTAL 29,040. Effective 0.11%. Elective share 50% = 12,531,300. Headroom 0; ceiling 26,000,000.
Gross 18,000,000; admin 354,400; deductions 669,400; net estate 17,330,600; TE 17,330,600 above 15,000,000. FEDERAL 932,240. Solver: 76,000 per year; 31 YEARS removes 2,356,000 leaving TE 14,974,600 at or below the exclusion, tax $0. Saved 932,240.
Gross 80,000; admin 1,800; deductions 10,800; net estate 69,200; TE 69,200. Federal $0, Arizona $0, TOTAL $0. Affidavit available (personal property 80,000 at or below 100,000). Elective share 18% = 12,456.
Estimates only. Not legal, tax or financial advice. Verify the current Arizona Revised Statutes Titles 14, 25 and 43 and federal rules before relying on any figure.
What Is the Arizona Estate Tax Calculator?
The Arizona Estate Tax Calculator is a planning tool that estimates transfer taxes for an Arizona decedent’s estate. Under the calculator’s rules, Arizona estate tax and Arizona inheritance tax are always $0. The main tax calculation is therefore federal. The tool also models Arizona community property by including only the decedent’s one-half share of entered community assets in the gross estate.
An Arizona estate tax calculator shows whether the estate’s federal tax base exceeds the applicable federal exclusion and estimates the resulting federal estate tax. It can also calculate federal GST tax, test exclusion headroom, estimate a surviving spouse’s elective share, check the coded small-estate threshold, and model annual-exclusion gifting over time.
The calculator has three modes. You can estimate tax on the current estate, test whether a larger estate profile produces tax, or solve for the number of gifting years needed to bring the calculator’s total transfer tax to zero.
How the Arizona Estate Tax Calculator Formula Works
The calculation begins with Arizona community property and separate property. If the community-property box is selected, the calculator includes one-half of the total community property entered. It then adds separate real property, financial accounts, retirement assets, life insurance, and business or other property.
Administration costs equal the entered attorney and personal representative percentage applied to gross estate minus debts, with a minimum fee base of zero, plus court costs.
The calculator then subtracts debts, funeral expenses, administration costs, and casualty losses. The result cannot fall below zero.
An allowed marital deduction is subtracted when the decedent is married and the spouse is a U.S. citizen or the bequest passes to a QDOT. A charitable deduction is then limited to the amount remaining. Planned annual-exclusion gifting can further reduce the taxable estate.
The applicable exclusion equals the selected year’s basic exclusion plus entered DSUE. If the federal base exceeds that amount, the calculator subtracts the progressive schedule tax on the exclusion from the progressive schedule tax on the federal base. The encoded schedule ranges from 18% to 40%.
For example, one verified 2025 scenario uses a $20,000,000 gross estate, $500,000 of debts, $20,000 of funeral costs, a 2% fee, $400 of court costs, and an $89,600 charitable bequest. Administration costs equal $390,400. The net estate is $19,089,600, and the charitable deduction reduces the taxable estate to $19,000,000. The calculator produces tentative federal tax of $7,545,800 and a $5,541,800 applicable credit. Federal estate tax is therefore $2,004,000. Arizona estate tax is $0, so total tax is $2,004,000 when no GST tax applies.
How to Use the Arizona Estate Tax Calculator: Step by Step
- Choose what you want to calculate: estate tax on the estate, whether a larger estate would be taxed, or years of gifting needed to eliminate the calculated tax.
- Select the year of death from 2024, 2025, or 2026. Then choose the Arizona county of domicile used for the Superior Court venue output.
- If applicable, select the Arizona community-property option and enter the value of both halves. The calculator includes one-half in the gross estate.
- Enter separate real property, financial accounts, retirement accounts and annuities, includible life insurance, and business interests or other property.
- Enter debts, funeral costs, the attorney and personal representative fee percentage, Superior Court and other costs, and casualty or theft losses.
- Enter marital information, years of marriage, spouse citizenship or QDOT status, any surviving-spouse bequest, and charitable bequests.
- Add earlier taxable gifts, DSUE from a predeceased spouse, direct skips, and any GST exemption allocated.
- For gifting analysis, enter the number of donees, gift per donee, unrealized gain, heirs’ capital gains rate, NIIT choice, and maximum years to test.
- Check the required acknowledgment and calculate the result.
The result area shows the federal exclusion, taxable estate, federal estate tax, Arizona tax amounts, GST tax, transfer tax, succession information, and other modeled results. Gifting mode also compares tax before and after the gifting plan and projects tax remaining after one, two, and three years.
What Your Arizona Estate Tax Calculator Result Means
Federal Exclusion and Gift Amounts Used
| Year | Federal Basic Exclusion | Annual Gift Exclusion Used by Tool |
|---|---|---|
| 2024 | $13,610,000 | $18,000 per donee |
| 2025 | $13,990,000 | $19,000 per donee |
| 2026 | $15,000,000 | $19,000 per donee |
Arizona Community Property
If community property is selected, only one-half of the value entered on the community-property line is added to the calculator’s gross estate. Separate assets are added in full. The interface also notes a double basis step-up for community property, but that basis treatment is not included in the estate-tax formula itself.
Elective Share and Small Estates
For a married decedent, the elective-share estimate starts at 3% for zero completed years of marriage. It rises by three percentage points per entered year, reaches 45% at 14 years, and becomes 50% at 15 years or more. The code applies that percentage to the calculated net estate as a proxy for the augmented estate.
The small-estate test adds financial accounts, retirement assets, life insurance, and business or other personal property. A total of $100,000 or less is marked eligible. The calculator also states that real property of $200,000 or less may pass by affidavit after six months, but its Boolean eligibility test itself uses the $100,000 personal-property calculation.
Important Code Limitations
This is an estimate, not a tax return or legal opinion. The calculator uses fixed 2024 through 2026 values. Its Form 706 test is based on whether taxable estate plus earlier taxable gifts exceeds the basic exclusion plus DSUE. It does not determine every reason a Form 706 filing could be useful or required.
The current result renderer also requests an effective-rate value and a gifted-asset appreciation value that the main calculation function does not return. As coded, those particular displayed gifting basis and effective-rate figures do not receive the underlying values expected by the renderer. Other displayed calculations should be read according to the formulas actually implemented in the code.
Frequently Asked Questions
Does Arizona have an estate tax in this calculator?
No. The calculator assigns $0 to Arizona estate tax for every result. It also assigns $0 to Arizona inheritance tax. This means a positive total transfer-tax result comes from the calculator’s federal estate tax, federal generation-skipping transfer tax, or a combination of those federal taxes.
How does Arizona community property affect the estate calculation?
The calculator includes only one-half of the entered community-property value in the gross estate when the community-property option is selected. For example, $1,200,000 entered as total community property contributes $600,000 to the gross estate. Separate real estate and other separately entered assets are then added in full.
How does the calculator determine federal estate tax?
The tool calculates a taxable estate after its coded deductions and then adds earlier taxable gifts. It compares that federal base with the basic exclusion plus DSUE. When the base is higher, the calculator applies its progressive federal schedule to both amounts and subtracts the exclusion-based credit from the tentative tax.
Does the Arizona Estate Tax Calculator include DSUE portability?
Yes. The DSUE amount entered by the user is added directly to the federal basic exclusion for the selected year. The calculator describes portability as allowed with a timely Form 706 election. It does not independently verify that a portability election was valid or that the entered DSUE amount is correct.
How is generation-skipping transfer tax calculated?
The calculator subtracts the entered GST exemption from direct skips to grandchildren or later generations. Any remaining amount is treated as taxable direct skips. It then applies a flat 40% GST rate. The GST exemption field is user-entered, so the calculator does not automatically insert the year’s federal exclusion into that field.
How does the gifting mode work?
Gifting mode uses the smaller of the entered annual gift per donee or the calculator’s annual exclusion. It multiplies that amount by the number of donees and gifting years. A guarded search then looks for the first whole number of years that reduces total calculated transfer tax to zero within the maximum horizon entered.
How accurate is this Arizona estate tax calculator?
The calculator is an estimate that follows the specific formulas, thresholds, assumptions, and fixed values written into its code. Real estate-tax and probate results can differ because of valuations, ownership, deductions, elections, filing rules, basis treatment, law changes, and facts the calculator does not model. Professional tax or legal advice may be needed.