Estate tax worksheet

Minnesota Estate Tax Calculator

Minnesota's 2026 return uses a $3 million exclusion. It adds relevant three-year gifts and prior Minnesota-only QTIP, then subtracts current qualifying deductions before applying its 13%–16% schedule.

Updated Oct 2, 20265 primary sources citedEditorial policy

Minnesota three-year gifts and QTIP worksheet

Who this covers and what to enter

For deaths in 2026 and 2027 using prepared M706 amounts. The form distinguishes prior QTIP additions from current QTIP deductions and separately allocates the tax.

Date of death Confirmed residency Prepared tentative taxable estate — line 1 ($)Federal Form 706 line 3a, with any applicable exempt retirement-plan adjustment already made.Federal taxable gifts within three years — line 2b ($)Only gifts included by the Minnesota instructions, not every lifetime gift.Foreign death-tax deduction addback — line 3 ($)Prepared deduction added back for Minnesota.Previously allowed Minnesota-only QTIP — line 4 ($)Value from the prior spouse’s state election not already in federal gross estate.Prepared business/farm deduction — line 6b ($)Elected M706Q amount; maximum $2 million for 2026.Current Minnesota-only QTIP deduction — line 7 ($)Prepared Worksheet A amount; do not repeat a federal QTIP deduction.Minnesota gross estate — Worksheet B step 1 ($)Include Minnesota-situs prior QTIP and any required nonresident pass-through property.Minnesota-situs gifts — Worksheet B step 2 ($)The qualifying Minnesota portion of the three-year gifts.Federal gross estate before prior state QTIP addition ($)The worksheet adds the line 4 Minnesota-only QTIP to this amount in the allocation denominator.Prepared nonresident credit — line 12 ($)Specific pass-through property credit, after both statutory limits. Residents must enter 0.Prior Minnesota estate-tax payments — line 14 ($)Includes extension payments. This estimate excludes interest and penalties. These are prepared Minnesota amounts for a 2026 or 2027 estate. I have resolved asset exemptions, QTIP, the M706Q election, gift situs, pass-through property and any nonresident credit. This does not determine election eligibility or recapture tax.

Your estimate

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Select residency and confirm the prepared amounts.

Estimated Minnesota estate tax — line 13: —
Estate after Minnesota additions — line 5: —
Exclusion and prepared deductions — line 8: —
Minnesota taxable estate — line 9: —
Tax before allocation — line 10: —
Tax after Worksheet B allocation — line 11: —
Balance before interest / penalties: —
Estimated overpayment: —

Whole-dollar estimates and a five-decimal property fraction. Filing, federal tax and beneficiary distributions are separate questions.

Reviewed October 1, 2026 against 2026 Form M706 and the September 2026 instructions.

Start after federal deductions, then make state adjustments

M706 line 1 starts from the prepared federal tentative taxable estate. The instructions provide an adjustment for certain exempt retirement plans. Three-year gifts, deducted foreign death taxes and prior Minnesota-only QTIP are added separately. Lines 1–4 instructions.

For a $5 million starting amount with no additions, special deductions or allocation, the $3 million exclusion leaves $2 million taxable at 13%, or $260,000. Adding $1 million of includible gifts produces $3 million taxable and $390,000 before allocation.

Prior and current QTIP entries have opposite effects

The prior spouse's Minnesota-only QTIP goes into line 4 when not already in federal gross estate. A current Minnesota-only QTIP election belongs in Worksheet A and line 7. Do not count a deduction already taken federally a second time. Minnesota QTIP election guidance · State addition and election instructions.

With the same $5 million starting estate, $1 million of prior state QTIP raises the pre-allocation tax to $390,000. A $1 million current state QTIP deduction instead reduces it to $130,000. These calculated examples assume valid prepared amounts, no gifts and full Minnesota allocation.

The rate bands apply after the state exclusion

M706 line 9 amount	Tax before allocation
$0–$7,100,000	13% of line 9
$7,100,000–$8,100,000	$923,000 + 13.6% above $7,100,000
$8,100,000–$9,100,000	$1,059,000 + 14.4% above $8,100,000
$9,100,000–$10,100,000	$1,203,000 + 15.2% above $9,100,000
Above $10,100,000	$1,355,000 + 16% above $10,100,000

Use the amount after line 8's exclusion and deductions. Applying this table to gross estate would overstate tax. 2026 rate table.

Qualified business and farm property require an election

The 2026 deduction is limited to $2 million, in addition to the $3 million exclusion. Enter the prepared M706Q election amount; this calculator does not determine whether a business, farm or heir qualifies. 2026 Schedule M706Q.

Worksheet B includes gifts and state-only QTIP

The form divides Minnesota gross estate plus Minnesota-situs gifts by the total gross estate plus the relevant gifts, rounding to five decimals. The prior Minnesota-only QTIP addition must also be included in the appropriate gross-estate entries. Worksheet B.

A $5 million gross estate with $2.5 million in its Minnesota numerator gives a 0.50000 fraction. If the pre-allocation tax is $260,000, allocated tax is $130,000. For a prior QTIP addition, update the situs amount as well as the total: changing only the taxable estate can leave an incorrect fraction.

The nonresident credit has a narrow purpose

Line 12 is for qualifying nonresident pass-through property taxed by another state. The prepared credit is limited by the other-state tax and the Minnesota tax attributable to that property. A resident cannot use it. Nonresident credit instructions.

The calculator subtracts the prepared credit after allocation. It keeps prior payments separate: an allocated liability of $130,000, a valid $20,000 credit and $120,000 already paid give $110,000 net tax and $10,000 estimated overpayment, before interest or penalties.

Check Minnesota's filing requirements separately. Compare Illinois's interrelated tax or Maine's one-year gift rules.

First documented September 4, 2026 · Updated October 2, 2026