Deceased Estate Tax Calculator

Who is Assessed on the Income

This deceased estate tax calculator estimates trustee tax on ordinary estate income when no beneficiary is presently entitled. Assessable income less allowable deductions gives estimated taxable estate income. The calculation assumes confirmed section 99 treatment for a resident estate still under administration.

The estate’s income starts after death. Income earned by the deceased before death belongs in the deceased person’s own return. Enter income and deductions for the estate return only.

A beneficiary who is presently entitled and is a resident without a legal disability generally pays tax on their share. The trustee can pay tax for a non-resident beneficiary or a beneficiary under a legal disability. An interim income distribution can create present entitlement before administration finishes.

Selecting present entitlement, completed administration or non-resident facts gives a separate-analysis result. The calculator retains the estate income estimate but leaves trustee tax uncalculated. The ATO’s estate-income guidance explains these assessment differences.

Rates and the Administration Stage

The first three estate income years can use resident individual rates with the full $18,200 tax-free threshold under the concessional treatment. The first income year can be short. Count it as year one, even if death occurs near the income year’s end.

Administration still being underway does not itself establish eligibility for section 99 treatment. Confirm the assessment basis and any material change to the estate’s circumstances. Choose Uncertain if that treatment remains unresolved.

For the fourth estate income year onwards, section 99 has different low-income rules. Tax is nil through $416, followed by 50% of income over $416 during the phase-out. Once income exceeds that phase-out, the lowest rate applies from the first dollar.

The 2024-25 and 2025-26 schedules use a $611 phase-out and a 16% lowest rate. In 2026-27, the lowest rate drops to 15%, so section 14 relief ends at $594. The higher marginal rates are 30%, 37% and 45%, above $45,000, $135,000 and $190,000 respectively.

The Income Tax Rates Act schedules and section 14 set these rates and phase-outs. Deceased estates receive no low income tax offset and pay no Medicare levy on this assessment. The estimate excludes credits and withholding already paid.

A Fictional Estate Calculation

A fictional resident estate has $31,500 of assessable income and $1,500 of allowable deductions in 2025-26. Its estimated taxable income is $30,000. Administration continues, no beneficiary is presently entitled and section 99 treatment is confirmed.

In its first three estate income years, the first $18,200 is tax-free. Tax on the remaining $11,800 at 16% is $1,888. These are the calculator’s default inputs and result.

For the same income in the fourth estate income year, the full $30,000 is taxed at 16%. Estimated trustee tax becomes $4,800. Changing the income year to 2026-27 instead gives $1,770 under the first-three-year schedule.

Use the executor’s income statements and estate accounts to reconcile the amounts. Funeral costs, distributions of capital and every administration expense are not automatically income-tax deductions. Enter only allowable deductions. Cents in the net taxable amount are disregarded before applying the schedule.

Cases That Need Separate Analysis

Present entitlement requires an allocation of the estate’s net income, not simply a deduction for cash distributed. Capital gains, franked distributions and superannuation death benefits can have separate tax treatment. Work out those amounts and any credits before preparing the return.

When administration finishes during the income year, an apportionment can depend on when income was actually earned. Dividing annual income by elapsed days does not establish the correct allocation. Use the executor’s records of actual income and entitlement.

Non-resident estates, non-resident beneficiaries and beneficiaries under a legal disability need separate assessment work. A section 99A assessment also requires a separate calculation. An unfinished estate does not automatically receive the first-three-year concession.

For the executor’s wider deceased estate tax return work, establish the assessment facts before relying on a trustee-tax estimate. Entered figures stay on this browser page, with no upload or browser storage.