Estate tax is a form of taxation that is assessed on the value of a deceased person's estate, which includes all assets and property owned at the time of passing. This tax is typically calculated based on the total value of the estate minus any debts, funeral expenses, and certain deductions. In the United States, estate tax is imposed at both the federal and state levels, and the rates can vary significantly. The estate tax laws dictate the threshold amount; estates valued below this threshold may not be subject to taxation. The tax is typically payable by the estate itself before distribution of the remaining assets to heirs.