Kentucky Estate Tax Calculator
Estimate the federal estate tax AND the Kentucky inheritance tax on a Kentucky decedent’s estate. Kentucky has no estate tax and no gift tax, but it is one of the few states with a beneficiary-level inheritance tax: Class A heirs (spouse, parents, children, grandchildren) pay nothing, while Class C and Class D beneficiaries pay graduated rates above a $500 exemption. 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
Kentucky succession
Gifting analysis
Three-year gifting projection
How it works
- Kentucky taxes beneficiaries, not the estate. Kentucky has no estate tax and no gift tax; instead a beneficiary-level inheritance tax (KRS Ch. 140) applies. Class A heirs (spouse, parents, children, grandchildren) are exempt; Class C and Class D beneficiaries pay graduated rates above a $500 exemption (simplified schedules, VERIFY).
- Federal estate tax also 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. Kentucky 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; Kentucky has no state exclusion to port.
- Elective share. A surviving spouse may elect a statutory share (modeled at one-half of the net estate, KRS 392.080; VERIFY) regardless of the will; dower rights in real property also exist.
- Small estates. The affidavit procedure under KRS 395.030 is available where personal property is $15,000 or less; verify the current figure.
- Binding factor names what controls the result: the federal basic exclusion, the federal unified schedule, the Kentucky inheritance tax, 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 federal exclusion or below. Class C/D inheritance tax is computed on the entered bequest amounts and is not reduced by the gifting plan.
- Gifting is not free. Carryover basis loses the step-up; the deferred gain is netted against the tax saved.
Sources
- KRS Ch. 140 (Kentucky inheritance tax: Class A exempt; Class C and Class D graduated rates above a $500 exemption; simplified schedules used here and flagged VERIFY against KRS 140.050 and 140.060); Kentucky Department of Revenue inheritance tax guidance confirming no state estate tax and no gift tax.
- KRS 392.080 (spousal elective share; modeled one-half of net estate, VERIFY; dower rights in real property also exist); KRS 395.030 (small-estate affidavit, $15,000 personal property limit; VERIFY); Kentucky probate venue in the District Court (Probate Division) of the county of domicile (120 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 6,000,000; admin 114,400; deductions 429,400; net estate 5,570,600; marital capped 5,570,600; TE 0. Federal $0, Kentucky inheritance $0, TOTAL $0. Headroom 13,990,000; ceiling 19,990,000.
Gross 21,000,000; admin 410,400; deductions 930,400; net estate 20,069,600; TE 20,000,000. Federal 2,404,000. Class C tax 79,370; Class D tax 79,710; Kentucky inheritance 159,080. TOTAL 2,563,080. Effective 12.21%.
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 429,040. Kentucky inheritance $0. TOTAL 429,040. Elective share one-half = 12,531,300.
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; Kentucky $0. 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 14,000; admin 560; deductions 3,560; net estate 10,440; TE 10,440. Federal $0. Class C tax 350 (on 4,500 over the $500 exemption). TOTAL 350. Affidavit available (personal property 14,000 at or below 15,000). Elective share one-half = 5,220.
Estimates only. Not legal, tax or financial advice. Kentucky inheritance rate schedules, elective share and small-estate threshold are flagged for verification against KRS Ch. 140, 392 and 395. Verify all figures with the Kentucky Department of Revenue and federal rules before relying on them.
What Is the Kentucky Estate Tax Calculator?
The Kentucky Estate Tax Calculator is an estimation tool that combines federal estate-tax calculations with Kentucky’s beneficiary-level inheritance-tax calculation. The calculator itself sets Kentucky estate tax to zero. It separately calculates inheritance tax for entered Class C and Class D transfers, while treating Class A beneficiaries as exempt under its model.
To estimate tax, enter the estate’s assets, deductible costs, bequests, prior taxable gifts, portability amount, beneficiary transfers, and any applicable generation-skipping transfers. The calculator builds a taxable estate, applies its federal progressive tax schedule, calculates Kentucky Class C and Class D inheritance tax, adds GST tax when applicable, and reports total transfer tax.
The tool also has modes for checking how much federal exclusion remains and estimating how many years of annual-exclusion gifting may be needed to reduce federal estate tax to zero within the selected time horizon.
How the Kentucky Estate Tax Calculator Formula Works
The calculation begins by adding the five asset categories entered in the calculator.
Administration costs are based on the gross estate after debts, subject to a zero floor, multiplied by the entered attorney and executor fee percentage. Court costs are then added.
The allowed marital deduction is capped at the net estate. Under the calculator logic, it is available when the decedent is married and the surviving spouse is a U.S. citizen or the transfer uses a QDOT. The charitable deduction is then limited to the remaining estate.
The federal base equals the taxable estate plus earlier taxable gifts. The applicable federal exclusion equals the basic exclusion for the selected year plus entered DSUE. The calculator uses basic exclusions of $13.61 million for 2024, $13.99 million for 2025, and $15 million for 2026.
Here, T represents the calculator’s progressive federal schedule. Its coded brackets range from 18% to 40%.
For example, consider the calculator’s verified 2025 test case with a $21,000,000 gross estate. Debts are $500,000, funeral costs are $20,000, the fee percentage is 2%, court costs are $400, and the charitable bequest is $69,600. Administration costs equal $410,400. Total deductions equal $930,400, leaving a $20,069,600 net estate. After the $69,600 charitable deduction, the taxable estate is $20,000,000. The calculator produces $2,404,000 of federal estate tax. With $500,000 entered for each of Class C and Class D, it adds $159,080 of Kentucky inheritance tax, producing total transfer tax of $2,563,080.
How to Use the Kentucky Estate Tax Calculator: Step by Step
- Choose whether you want to calculate tax on the current estate, test whether a larger estate would be taxed, or estimate years of gifting needed to eliminate the calculated tax.
- Select the year of death and Kentucky county of domicile. The year controls the federal basic exclusion and annual gift exclusion used by the calculator.
- Enter real property, financial accounts, retirement accounts and annuities, includible life insurance, and business or other property.
- Enter debts, funeral expenses, the attorney and executor fee percentage, District Court and other costs, and casualty or theft losses.
- Enter marital information, any spouse or charitable bequest, and amounts passing to Class C and Class D beneficiaries.
- Add earlier taxable gifts, DSUE, direct skips, and allocated GST exemption when those fields apply to the estate.
- For gifting analysis, enter the number of donees, gift per donee, unrealized gain, heirs’ capital-gains rate, NIIT selection, and maximum years to test.
- Confirm the required acknowledgment and calculate the result.
The results separate federal estate tax, Kentucky Class C and Class D inheritance tax, Kentucky estate tax, and federal GST tax. They also show the total transfer tax, effective rate, taxable estate, remaining federal exclusion headroom, and several estate-planning indicators produced by the calculator.
What Your Kentucky Estate Tax Calculator Result Means
Kentucky Estate Tax and Inheritance Tax Are Separate
The calculator sets Kentucky estate tax to zero. Its Kentucky-specific tax calculation instead applies inheritance tax to entered Class C and Class D beneficiary amounts. Each class receives a $500 exemption in the calculator before its graduated schedule is applied. Class A transfers are treated as exempt.
| Calculator Component | How the Code Treats It |
|---|---|
| Kentucky estate tax | $0 |
| Class A inheritance | Exempt |
| Class C inheritance | $500 exemption, then coded graduated rates from 6% to 16% |
| Class D inheritance | $500 exemption, then coded graduated rates from 10% to 16% |
| Federal estate tax | Progressive coded schedule from 18% to 40% |
| Federal GST | 40% of taxable direct skips |
Federal GST Calculation
The calculator subtracts the entered GST exemption allocation from direct skips. A zero floor prevents a negative taxable amount. It then applies the coded 40% GST rate.
Gifting Analysis
Gifting mode limits the effective annual gift per donee to the calculator’s annual exclusion. It uses $18,000 for 2024 and $19,000 for 2025 and 2026. The gift reduction equals that effective gift multiplied by the number of donees and years. The solver searches for the number of years needed to bring the taxable estate to the federal exclusion or below, subject to the maximum-years setting.
Important Limitations
This calculator provides estimates, not legal, financial, or tax advice. Its own code flags the Kentucky Class C and Class D schedules, elective-share treatment, and small-estate threshold for verification. The elective-share output is modeled as one-half of the calculated net estate for a married decedent. Actual estate administration and tax treatment can depend on facts not represented by these inputs.
The calculator is also specifically built around its encoded 2024 through 2026 federal figures. Tax laws, exclusions, filing requirements, beneficiary classifications, and other rules can change. Verify the applicable rules before using an estimate for an estate filing or planning decision.
Estate Tax Calculators for All 50 U.S. States
Frequently Asked Questions
Does Kentucky have an estate tax?
The calculator treats Kentucky estate tax as zero. However, it separately calculates a Kentucky inheritance tax for entered Class C and Class D beneficiary transfers. This distinction matters because the calculator’s state-level liability depends on who receives the entered inheritance rather than applying a Kentucky estate tax to the estate itself.
How does the Kentucky inheritance tax calculator work?
The calculator subtracts a $500 exemption from the total amount entered for each Class C and Class D category, with a zero minimum. It then applies separate graduated schedules. The coded Class C rates range from 6% to 16%, while the Class D schedule ranges from 10% to 16%.
Who is exempt from Kentucky inheritance tax in this calculator?
The calculator treats Class A beneficiaries as exempt from Kentucky inheritance tax. Its interface identifies this group as a surviving spouse, parents, children including adopted children, and grandchildren. The spouse-bequest field is treated as Class A. Class C and Class D transfers are handled separately through their dedicated input fields.
How is federal estate tax calculated?
The calculator forms a federal base from the taxable estate plus earlier taxable gifts. If that base exceeds the applicable federal exclusion, it calculates tentative tax using its progressive 18% to 40% schedule and subtracts the tax calculated on the applicable exclusion. A negative result is floored at zero.
Does DSUE increase the estate tax exemption?
Yes, within this calculator. The entered DSUE amount is added directly to the basic federal exclusion for the selected death year. The resulting figure becomes the total applicable federal exclusion used by the calculation. The calculator notes that federal portability requires a timely Form 706 election.
How does the Kentucky Estate Tax Calculator handle marital deductions?
The calculator allows the 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. If those conditions are not met, the entered spouse bequest does not receive the calculator’s federal marital deduction.
How accurate is the Kentucky Estate Tax Calculator?
The result is an estimate based on the calculator’s encoded assumptions and entered values. The code includes federal figures for 2024 through 2026 and explicitly flags some Kentucky inheritance-tax schedules, elective-share treatment, and the small-estate threshold for verification. Actual tax liability may differ, so professional review may be appropriate.