In this work, the problem of fault and state estimation is studied for Takagi-Sugeno fuzzy systems with time-varying delay and external disturbance over a finite horizon. A fuzzy rule-based fault estimator with two tuning parameters, including the current system output information, is designed. Based on which, the Luenberger state observer is then considered to estimate the immeasurable states of the system addressed. The aim of taking into account the tuning parameters in the estimator design is to improve the accuracy of the fault estimation. More precisely, by defining error variables in accordance with actual and estimated system states and faults, an augmented system is formulated to achieve the desired results. By using the existing stability theory and integral inequality, a delay-dependent criterion for ensuring that the states of the augmented system are bounded over a finite horizon is derived. Subsequently, conditions for determining the observer gain matrices are presented. Two simulation examples, including an application example of the truck-trailer model, are provided to demonstrate the advantages of the theoretical results that have been established. In particular, the importance of the use of tuning parameters is discussed.