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    BitcoinCalculatorTools
    Bitcoin Inheritance Calculator

    Bitcoin Inheritance & Estate Tax Calculator

    Calculate step-up basis savings, federal and state estate taxes, and capital gains on inherited Bitcoin. Free, private, and accurate.

    Live BTC:$77,415
    Step-Up Basis Calculator
    Estate Tax Analysis
    13 States + DC Coverage

    Inheritance Details

    Ready to Calculate

    Enter your inheritance details to see step-up basis savings, estate tax exposure, and capital gains estimates

    How It Works

    How Our Bitcoin Inheritance Tax Calculator Works

    Understand step-up basis rules, estimate capital gains, and check estate tax exposure — all in one free tool

    Step 1

    Enter Inheritance Details

    Start by entering the amount of Bitcoin inherited and the fair market value (price) on the date of the original owner's death. This date-of-death price becomes your new stepped-up cost basis under current IRS rules.

    • Enter inherited BTC amount
    • Look up Bitcoin price on date of death
    • Add the original purchase price for comparison
    • Use CoinGecko or exchange records for accuracy
    Step 2

    Understand the Step-Up Basis

    The step-up in basis is one of the most powerful tax benefits in the U.S. tax code. When you inherit Bitcoin, your cost basis resets to the fair market value at the time of death — not the original purchase price. This can eliminate decades of unrealized gains from your tax liability.

    • Cost basis resets to date-of-death value
    • Only gains after death are taxable
    • Can save thousands or millions in taxes
    • Applies to all inherited property, not just crypto
    Step 3

    Review Capital Gains Impact

    If you plan to sell the inherited Bitcoin, the calculator shows your estimated capital gains tax based on the difference between the current price and your stepped-up basis. It also compares what the tax would have been without the step-up benefit.

    • See gains from stepped-up basis vs. original
    • Estimate federal long-term capital gains tax
    • Compare tax savings side by side
    • All inherited assets qualify for long-term rates
    Step 4

    Check Estate Tax Exposure

    The calculator evaluates whether the total estate exceeds the federal exemption ($13.61M in 2026) and checks for state-level estate taxes. Thirteen states and DC have their own estate taxes with exemptions as low as $1 million.

    • Federal exemption: $13.61M (single) / $27.22M (married)
    • 13 states + DC have separate estate taxes
    • State exemptions range from $1M to $13.61M
    • Most estates owe zero federal estate tax

    Understanding Bitcoin Inheritance Tax in 2026

    When someone passes away and leaves Bitcoin to their heirs, the tax treatment depends on several factors: the size of the estate, the state of residence, and whether the heir sells the inherited Bitcoin. The most important concept to understand is the step-up in basis — a provision that resets the cost basis of inherited assets to their fair market value on the date of death.

    How the Step-Up Basis Works for Bitcoin

    Imagine your parent bought 10 BTC in 2015 for $250 each (total cost: $2,500). When they pass away in 2026, Bitcoin is trading at $90,000. Under the step-up rule, your new cost basis becomes $90,000 per BTC — not $250. If you sell immediately, your capital gain is close to $0. Without the step-up, you would owe tax on $897,500 in gains. This single provision can save heirs tens of thousands of dollars in taxes.

    Federal Estate Tax Thresholds

    The 2026 federal estate tax exemption is $13.61 million per individual. Married couples can effectively double this to $27.22 million through portability. Estates below these thresholds owe zero federal estate tax. Only about 0.1% of estates exceed the exemption — but those that do face rates up to 40% on the excess.

    State Estate Taxes: The Hidden Trap

    While most estates avoid federal estate tax, 13 states and DC have their own estate taxes with much lower exemptions. Oregon and Massachusetts start at just $1 million, and Washington state has the highest top rate at 20%. If the deceased lived in one of these states, the estate may owe state-level taxes even if federal taxes don't apply.

    Key Tax Planning Strategies

    Heirs who inherit Bitcoin should consider several strategies: (1) Hold the BTC to avoid triggering capital gains entirely, (2) Sell immediately after inheriting to lock in the stepped-up basis with minimal gain, (3) Consult an estate planning attorney about trusts and gifting strategies, and (4) Document the date-of-death Bitcoin price with exchange records for IRS compliance.

    Professional Tax Disclaimer

    This calculator provides estimates for educational and planning purposes only. Estate and inheritance tax laws are complex, vary by state, and change frequently. Always consult with a qualified estate planning attorney or CPA for personalized advice regarding your specific situation.

    FAQ

    Frequently Asked Questions

    Common questions about inherited Bitcoin taxation and estate planning.

    Disclaimer

    This calculator is for educational and estimation purposes only. Estate and inheritance tax laws are complex, vary by jurisdiction, and change frequently. Results do not account for all possible deductions, credits, or trust structures. Always consult with a qualified estate planning attorney or CPA for personalized tax advice.