Indiana Estate Tax Calculator
Estimate the federal estate tax on an Indiana decedent’s estate and confirm that Indiana itself charges nothing. Indiana’s inheritance tax was fully repealed for decedents dying after December 31, 2012, and its old pick-up estate tax tied to the federal state death tax credit disappeared for deaths after 2004, so for 2024-2026 deaths Indiana tax is $0. Indiana has no gift tax. Distinctive rules modeled: the repealed inheritance tax, the one-third spousal elective share, and the small-estate affidavit.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
Indiana succession
Gifting analysis
Three-year gifting projection
How it works
- Indiana charges nothing for recent deaths. The Indiana inheritance tax (IC 29-2) was fully repealed for decedents dying after December 31, 2012, and the former pick-up estate tax tied to the federal state death tax credit is $0 for deaths after 2004, so no Indiana estate or inheritance tax return is filed. There is no Indiana 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.
- No community property. Indiana is a common-law state, so no halving of community assets and no double basis step-up.
- Portability is federal only. A surviving spouse may inherit the unused federal exclusion (DSUE) with a timely Form 706 election; there is no Indiana state exclusion to port.
- Elective share. A surviving spouse may elect one-third of the net estate under IC 29-1-3-1 regardless of the will.
- Small estates skip full probate. The affidavit procedure under IC 29-1-8-4 is available where personal property is $50,000 or less; verify the current figure.
- 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
- IC 29-2 (Indiana inheritance tax, fully repealed for decedents dying after December 31, 2012) and the former Indiana pick-up estate tax tied to the federal state death tax credit (zero for deaths after 2004); Indiana Department of Revenue guidance confirming no state estate, inheritance or gift tax for those deaths.
- IC 29-1-3-1 (spousal elective share of one-third of the net estate); IC 29-1-8-4 (small-estate affidavit, $50,000 personal property limit; verify current figure); IC 29-1-7 (probate venue in the Circuit Court or Superior Court with probate jurisdiction of the county of domicile; 92 counties).
- 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 chapter 13 GST at 40%; IRC 1014 step-up and 1015 carryover basis.
- IRS Form 706 and Form 4768 instructions (9-month deadline, 6-month filing extension).
Test cases
Gross 9,000,000; admin 172,400; deductions 587,400; net estate 8,412,600; TE 8,412,600 below 13,990,000. Federal $0, Indiana $0, TOTAL $0. Headroom 5,577,400; ceiling 14,577,400. Affidavit NOT available (personal property 5,000,000).
Gross 20,000,000; admin 390,400; deductions 910,400; net estate 19,089,600; TE 19,089,600 above 13,990,000. Federal tentative 7,581,640 less credit 5,541,800 = FEDERAL 2,039,840. Indiana $0. TOTAL 2,039,840. Effective 10.20%.
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 15,990,000. Federal tentative 6,770,840 less credit 6,341,800 = FEDERAL 429,040. Indiana $0. TOTAL 429,040. Elective share one-third = 8,354,200. Headroom 0; ceiling 26,000,000.
Gross 20,000,000; admin 394,400; deductions 709,400; net estate 19,290,600; TE 19,290,600 above 15,000,000. FEDERAL 1,716,240. Solver: 76,000 per year; 57 YEARS removes 4,332,000 leaving TE 14,958,600 at or below the exclusion, tax $0. Saved 1,716,240.
Gross 45,000; admin 1,140; deductions 8,140; net estate 36,860; TE 36,860. Federal $0, Indiana $0, TOTAL $0. Affidavit available (personal property 45,000 at or below 50,000). Elective share one-third = 12,287.
Estimates only. Not legal, tax or financial advice. Verify the current Indiana Code and federal rules before relying on any figure.
What Is the Indiana Estate Tax Calculator?
The Indiana Estate Tax Calculator is an estate-planning estimate tool that calculates federal transfer tax for an Indiana decedent and separately shows Indiana estate and inheritance tax as $0 under the rules built into the calculator. It supports three modes: calculate tax on an estate, test whether a larger estate would be taxed, or estimate years of annual-exclusion gifting needed to eliminate the calculated tax.
For 2024 through 2026 deaths, the calculator applies no Indiana estate tax, inheritance tax, or gift tax. It instead estimates federal estate tax from the taxable estate, prior taxable gifts, the federal exclusion, and DSUE portability. It can also calculate federal GST tax on taxable direct skips.
The results include gross and net estate values, deductions, federal tax, GST tax, total transfer tax, remaining exclusion, amounts reaching other heirs, a spousal elective-share estimate, small-estate affidavit status, Form 706 status, and gifting projections.
How the Indiana Estate Tax Calculator Formula Works
The calculation starts by adding the five asset categories entered in the form.
G is the gross estate. R is real property, F is financial accounts, A is retirement accounts and annuities, L is includible life insurance, and B is business interests and other property.
Administration cost equals the attorney or representative percentage applied to gross estate minus debts, with a floor of zero, plus court costs. The net estate then subtracts debts, funeral costs, administration costs, and casualty losses.
The taxable estate subtracts an allowed marital deduction, charitable deduction, and any gifting reduction used by gifting mode.
The calculator then adds earlier taxable gifts to create the federal tax base. The applicable exclusion equals the year’s basic federal exclusion plus entered DSUE.
If the federal base exceeds the applicable exclusion, federal estate tax equals the calculator’s progressive federal tax schedule on the base minus the same schedule applied to the exclusion.
Federal GST tax is calculated separately at 40 percent of direct skips exceeding the entered GST exemption.
Indiana estate and inheritance taxes are always zero in this calculator, so total transfer tax is federal estate tax plus GST tax.
Worked Example
Consider the calculator’s 2025 Allen County example. The estate has $8 million of real property, $6 million in financial assets, $4 million in retirement assets, and $2 million in business interests. Gross estate is $20 million.
- Debts are $500,000 and funeral costs are $20,000.
- A 2 percent fee plus $400 of court costs produces $390,400 of administration costs.
- Total deductions equal $910,400, leaving a $19,089,600 net and taxable estate.
- The 2025 federal exclusion is $13,990,000 with no DSUE entered.
- The federal tentative schedule tax is $7,581,640 and the applicable credit is $5,541,800.
- Federal estate tax is $2,039,840. Indiana tax is $0, so total transfer tax is $2,039,840.
How to Use the Indiana Estate Tax Calculator: Step by Step
- Select what you want to calculate: estate tax, whether a larger estate would be taxed, or years of gifting needed to eliminate the calculated tax.
- Choose the year of death. The calculator supports 2024, 2025, and 2026, with federal basic exclusions of $13.61 million, $13.99 million, and $15 million.
- Select the Indiana county of domicile. This determines the probate venue shown in the results but does not change the tax calculation.
- Enter real property, financial accounts, retirement assets, life insurance, business interests, and other includible property.
- Enter debts, funeral expenses, the attorney or personal representative fee percentage, court costs, and casualty or theft losses.
- Enter marital information, a spouse bequest, and charitable bequests. A marital deduction is allowed only when the code identifies a citizen spouse or an elected QDOT.
- Add prior taxable gifts, DSUE, direct skips, and any allocated GST exemption.
- For gifting mode, enter the number of donees, gift per donee, embedded gain, capital gains rate, NIIT choice, and maximum years to test.
- Check the acknowledgment and calculate the result.
The main result changes by mode. Estate mode displays total transfer tax. Headroom mode reports whether the entered estate profile produces tax and shows remaining exclusion. Gifting mode returns the years needed to reduce calculated total tax to zero, or states that the selected maximum number of years is not enough.
What Your Indiana Estate Tax Calculator Results Mean
Indiana Tax Versus Federal Tax
The code treats Indiana estate tax and Indiana inheritance tax as zero for every supported death year. The calculator therefore focuses on federal transfer taxes. A large Indiana estate can still produce a substantial federal estate tax even though the Indiana lines remain at $0.
| Calculator Item | How It Is Handled |
|---|---|
| Indiana estate tax | $0 for supported 2024-2026 deaths |
| Indiana inheritance tax | $0 for supported deaths |
| Indiana gift tax | Not imposed in the calculator |
| Federal estate tax | Progressive 18% to 40% schedule above the applicable exclusion |
| Federal GST tax | 40% of direct skips above entered GST exemption |
| Federal portability | Entered DSUE is added to the federal basic exclusion |
Marital Deduction and Elective Share
If the decedent was married, the calculator allows a marital deduction for a U.S.-citizen spouse or a qualifying QDOT, capped at the net estate. It also displays an Indiana elective share equal to one-third of the calculated net estate. The years-of-marriage field provides context only and does not change that one-third calculation.
Small-Estate and Filing Indicators
The small-estate indicator checks whether financial assets, retirement accounts, life insurance, and business or other personal property total $50,000 or less. Real property is not included in that specific test. The calculator also marks Form 706 as required when its federal base exceeds the total applicable federal exclusion.
How Gifting Mode Works
For 2024, the code uses an $18,000 annual exclusion per donee. For 2025 and 2026, it uses $19,000. The gifting calculation limits the effective annual gift per donee to the smaller of the amount entered or that annual exclusion. It then tests up to the selected number of years.
The solver can perform up to 60 bound expansions and 90 bisection iterations before rounding the required number of years up. It also estimates deferred capital-gains cost from the entered unrealized gain and selected long-term capital-gains rate, adding 3.8 percent when the NIIT box is selected.
All results are estimates based on the rules and thresholds built into the code. Actual federal filing requirements, deductions, asset inclusion, valuations, probate procedures, tax law, gift treatment, and legal rights can differ. The calculator is not legal, tax, or financial advice, and its $50,000 small-estate threshold should be verified before use.
Estate Tax Calculators for All 50 U.S. States
Frequently Asked Questions
Does Indiana have an estate tax?
Not for the 2024 through 2026 deaths modeled by this calculator. The code sets Indiana estate tax to $0 and also sets Indiana inheritance tax to $0. However, the calculator can still produce federal estate tax when the federal tax base exceeds the applicable federal exclusion for the selected year.
Does Indiana have an inheritance tax?
The calculator treats Indiana inheritance tax as repealed for recent deaths and displays $0. Its built-in explanation states that the inheritance tax was repealed for decedents dying after December 31, 2012. The calculator therefore does not calculate a separate Indiana tax based on an heir’s relationship or inherited amount.
How is federal estate tax calculated for an Indiana estate?
The calculator subtracts coded deductions from gross estate assets, then subtracts allowed marital and charitable deductions. It adds earlier taxable gifts to the resulting federal base. If that base exceeds the year’s basic exclusion plus entered DSUE, it calculates tax using the federal 18 percent through 40 percent schedule stored in the code.
What is the federal estate tax exemption for 2025 in this calculator?
The calculator uses a $13,990,000 basic federal exclusion for a 2025 death. It uses $13,610,000 for 2024 and $15,000,000 for 2026. Entered DSUE from a predeceased spouse is added to that basic amount, creating the total applicable exclusion used in the calculator’s federal estate tax test.
Does the Indiana Estate Tax Calculator include marital deductions?
Yes. An entered spouse bequest receives a marital deduction when the decedent is marked married and the surviving spouse is a U.S. citizen or a QDOT is selected. The deduction cannot exceed the calculated net estate. A non-citizen spouse without a QDOT does not receive the marital deduction in the calculator.
How does the gifting calculator reduce estate tax?
Gifting mode reduces the taxable estate by annual-exclusion gifts. The effective gift per donee is capped at $18,000 for 2024 or $19,000 for 2025 and 2026. The solver tests successive years until total calculated transfer tax reaches zero or the entered maximum-year limit is reached.
How accurate is the Indiana Estate Tax Calculator?
The calculator consistently follows the formulas, federal exclusions, tax schedule, Indiana assumptions, and input limits coded into the tool. It is still an estimate rather than a tax return or legal determination. Actual estate values, deductible expenses, portability elections, GST treatment, filing duties, probate rules, and tax law may produce different results.