US Estate Tax Exposure Checker
Check your US estate tax exposure as a non-resident alien. See how US stocks, 401(k), and real estate measure against the $60,000 NRA exemption.
What Is US Estate Tax and Who Does It Affect?
US estate tax is a federal tax on the transfer of assets at death. Most people associate it with wealthy US citizens, but it also applies to non-resident aliens who own property located in the United States.
For US citizens and green card holders, the 2026 exemption is $15,000,000 per person. For non-resident aliens (NRAs), the exemption is $60,000.
That gap is not a typo. A US citizen can pass $15 million to their heirs before a single dollar of estate tax applies. A non-resident alien with $500,000 in US stocks, a 401(k), and a brokerage account pays 40% on $440,000 of that. The estimated tax: $176,000.
Who qualifies as a non-resident alien for estate tax?
This is where many people are caught off guard. Estate tax uses domicile as its test, not residency. Domicile requires two things: physical presence in the US and the intent to remain indefinitely. Many foreign nationals on temporary work visas who plan to eventually leave the US are not domiciled in the US. This means they are non-resident aliens for estate tax purposes, even if they have been filing US income tax returns as residents for years.
If you are a US citizen or green card holder, this tool does not apply to you. Green card holders are treated as US domiciliaries and receive the full $15 million exemption.
The US Estate Tax Rate: How 40% Applies to US-Situs Assets
The estate tax rate structure is progressive but reaches 40% quickly. For non-resident aliens, after the $60,000 exemption, the following rates apply:
| Taxable Estate (Above $60,000) | Rate |
|---|---|
| Up to $10,000 | 18% |
| $10,001 to $20,000 | 20% |
| $20,001 to $40,000 | 22% |
| $40,001 to $60,000 | 24% |
| $60,001 to $80,000 | 26% |
| $80,001 to $100,000 | 28% |
| $100,001 to $150,000 | 30% |
| $150,001 to $250,000 | 32% |
| $250,001 to $500,000 | 34% |
| $500,001 to $750,000 | 37% |
| $750,001 to $1,000,000 | 39% |
| Above $1,000,000 | 40% |
For most non-resident aliens with meaningful US asset exposure, the taxable estate reaches the 40% bracket quickly. The calculator applies 40% as a conservative upper bound on the full amount above the $60,000 exemption. Smaller estates face lower marginal rates (18%–39% on the first $1,000,000), so the tool will overstate the tax for estates well under $1 million. Use the result as a worst-case awareness estimate, not a precise computation.
Example
A foreign national holds $250,000 in US stocks and ETFs, $180,000 in a 401(k), and $25,000 in a US bank account. Total US-situs assets: $455,000.
- Minus NRA exemption: $60,000
- Taxable estate: $395,000
- Estimated estate tax at 40%: $158,000
Their heirs receive $297,000 instead of $455,000. The $158,000 goes to the IRS. No action is required during their lifetime. The tax falls on the estate at death, and heirs must pay it within 9 months.
What Are US-Situs Assets? Which Holdings Create Exposure?
US estate tax applies only to US-situs assets: property legally situated in the United States. Not everything you own is US-situs. Understanding the distinction is the first step to managing your exposure.
| Asset Type | US-Situs? | Notes |
|---|---|---|
| US stocks and ETFs | Yes | Shares in US corporations are always US-situs |
| 401(k) and IRA accounts | Yes | Treated as US-situs regardless of account holder's country |
| US real estate | Yes | Always US-situs |
| US bank account deposits | Conditionally | Generally exempt if held at a US bank, subject to specific rules |
| US Treasury bonds | No | Exempt under the portfolio interest exemption |
| Irish-domiciled ETFs (e.g. CSPX, VWRL) | No | Not US-situs, outside the estate tax net entirely |
| Shares in non-US corporations | No | Foreign corporation shares are not US-situs even if the company has US assets |
| Life insurance death benefit | No | Generally not US-situs if structured correctly |
The Irish-domiciled ETF point is important for anyone investing in global index funds through a non-US brokerage. ETFs like CSPX (iShares S&P 500, London-listed) or VWRL (Vanguard All World, London-listed) track the same underlying assets as their US equivalents but are domiciled in Ireland. They fall entirely outside US estate tax scope.
US-listed ETFs like VOO, VTI, or SPY are shares in US corporations and are fully US-situs. Switching from US-listed to Irish-domiciled equivalents is one of the most effective structural changes a non-resident investor can make to reduce estate tax exposure.
No Treaty? Your Exposure Depends on Your Country
The US has estate tax treaties with a limited number of countries, including the UK, Germany, Japan, France, and Australia. Residents of treaty countries can claim a prorated share of the US citizen exemption based on the ratio of their US assets to worldwide assets. This can significantly reduce or eliminate their estate tax exposure.
Many countries, however, have no estate tax treaty with the US. Residents of non-treaty countries receive only the $60,000 exemption with no proration and no additional relief.
If your country of residence has an estate tax treaty with the US, your actual exposure may be lower than this calculator shows. The tool applies the default $60,000 exemption as a conservative baseline. Check whether your country has a US estate tax treaty and consult an advisor to determine whether treaty benefits apply to your situation.
How to Use This Exposure Checker
Enter each asset category:
- US stocks and ETFs: The current market value of shares held in US-listed companies or US-domiciled funds
- US retirement accounts: Combined value of your 401(k), Traditional IRA, and Roth IRA
- US real estate: Current market value of any US property you own
- US bank accounts: Balances in US bank accounts (include for a conservative estimate)
- Other US assets: Any other US-situs property not covered above
Click Check My Exposure. The tool calculates your total US-situs assets, subtracts the $60,000 NRA exemption, and applies 40% to the taxable amount to show your estimated exposure.
Read your result carefully. The output is an awareness estimate, not a legal computation. Actual estate tax depends on your legal ownership structure, domicile determination, applicable treaty provisions, and the precise situs classification of each asset. Use this as a starting point to assess whether professional advice is warranted.
How to Reduce Your US Estate Tax Exposure
Switch from US-listed ETFs to Irish-domiciled equivalents
If you hold US-listed index ETFs like VOO, VTI, or SPY, switching to Irish-domiciled equivalents removes those holdings from your US-situs estate entirely. CSPX and VUAA track the S&P 500. VWRL and VWCE track the global market. The investment returns are comparable. The estate tax treatment is completely different.
Use the gift tax exception on intangible US assets
Non-resident aliens are generally not subject to US gift tax on intangible assets, including US stocks. This means you can gift shares in US companies to family members during your lifetime with no US gift tax, up to $19,000 per recipient per year without any filing requirement. Gifting reduces your taxable estate permanently.
Life insurance held outside your estate
A properly structured life insurance policy can fund the estate tax liability without the policy proceeds being included in the taxable estate. This does not reduce the tax owed but ensures your heirs have liquidity to pay it without being forced to sell US assets under a 9-month deadline.
Trust and LLC structures
Holding US assets through a non-US LLC or certain trust structures can change the situs determination for estate tax purposes. This is not a DIY solution and requires legal structuring with a qualified estate planning attorney. It is a legitimate planning option for larger asset holdings.
Frequently Asked Questions
Does US estate tax apply to people who live outside the US?
Yes. US estate tax applies to US-situs assets owned by non-resident aliens regardless of where they live. If you live outside the US and own US stocks, a 401(k), or US real estate, your estate is subject to US estate tax on those assets when you die. The tax is triggered by where the asset is located (its situs), not by where you live or whether you are a US citizen.
What is the US estate tax exemption for non-resident aliens in 2026?
The NRA estate tax exemption is $60,000. This is a statutory amount under IRC Section 2102 and has not been indexed for inflation. In contrast, US citizens and green card holders have a $15,000,000 exemption in 2026. Residents of countries with US estate tax treaties may receive a prorated share of the higher exemption. If your country has no estate tax treaty with the US, the $60,000 exemption applies.
Are 401(k) and IRA accounts subject to US estate tax for non-residents?
Yes. 401(k) and IRA accounts are treated as US-situs assets for estate tax purposes. If a non-resident alien dies holding a 401(k) or IRA, the account balance is included in the US-situs estate and subject to estate tax above the $60,000 exemption. The beneficiary also faces US income tax on distributions from traditional accounts. This combination of estate tax and income tax on the same asset makes retirement accounts a significant planning consideration for non-resident investors.
Is there any way to reduce US estate tax exposure as a non-resident alien?
Several strategies reduce exposure without requiring you to renounce citizenship or leave the US. Switching from US-listed ETFs to Irish-domiciled equivalents removes those assets from the taxable estate entirely. Gifting US stocks to family members during your lifetime using the NRA gift tax exception on intangibles reduces the taxable estate permanently. Trust and LLC structures can change how assets are treated at death. All of these require advance planning. Checking your exposure early gives you time to act.
Do Roth IRA withdrawals avoid estate tax for non-resident aliens?
No. Roth IRAs are included in the US-situs estate for estate tax purposes regardless of the income tax treatment. Estate tax and income tax are separate systems. A Roth IRA that would have been distributed income-tax-free to a US beneficiary is still part of the taxable estate for a non-resident alien. The estate tax applies to the full account value at the date of death.
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