Inheritance tax calculator

Estimate how much inheritance tax would be due on an estate, including the extra allowance for passing a home to children or grandchildren and any allowance left by a late husband, wife or civil partner.

How inheritance tax works in 2026/27

Allowance or rate	Amount
Nil-rate band	£325,000
Residence nil-rate band (home left to direct descendants)	Up to £175,000
Tax rate above the allowances	40%
Reduced rate if 10% or more goes to charity	36%

A married couple or civil partners can pass any unused allowances to each other, so the survivor's estate can have up to £1 million tax-free when a home is left to children or grandchildren. The residence nil-rate band is reduced by £1 for every £2 the estate is worth over £2 million.

Example

An estate worth £750,000 with £10,000 of debts, including a £400,000 home left to the children, has £740,000 after debts. Taking off the £325,000 nil-rate band and the £175,000 residence nil-rate band leaves £240,000, taxed at 40%: £96,000. If a late spouse's allowances were also unused, no tax would be due.

Frequently asked questions

Is there inheritance tax between spouses?

No. Anything left to a husband, wife or civil partner who lives in the UK is exempt, and the unused allowances can be transferred to them.

What about gifts made before death?

Gifts are usually tax-free if the person lives for 7 years after making them. Gifts made within 7 years of death may be taxed, on a sliding scale for gifts made 3 to 7 years before. This calculator does not include lifetime gifts.

Are pensions included?

At present, most unused pension pots are outside the estate. The government has announced that unused pension funds will count towards the estate for inheritance tax from 6 April 2027.

This calculator gives an estimate for guidance only and does not cover business or agricultural relief, trusts or lifetime gifts. For a real estate, get professional advice. Source: GOV.UK inheritance tax.