Inheritance tax calculator
An estimate of the Inheritance Tax on an estate, with both tax-free thresholds, what a late spouse left unused, and the reduced charity rate.
Quick answer. Inheritance Tax is 40% of the part of an estate above the tax-free threshold. The basic threshold is £325,000; leaving a home to children or grandchildren adds up to £175,000, so up to £500,000 — or £1 million for a married couple or civil partners who pass on both allowances. Both thresholds are frozen until April 2031.
Estimate Inheritance Tax
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| Nil-rate band | — |
|---|---|
| Residence nil-rate band | — |
| Taxable estate | — |
| Rate | — |
| Left to others after tax | — |
The two thresholds
Everyone has a nil-rate band of £325,000. If you leave your home, or a share of it, to your children (including adopted, foster or stepchildren) or grandchildren, a residence nil-rate band of up to £175,000 is added — but only up to the value of the home passed on, and it shrinks by £1 for every £2 the estate is worth over £2 million, so it is gone at £2.35 million.
Married couples and civil partners
Anything left to a husband, wife or civil partner is free of Inheritance Tax. Whatever part of the nil-rate band and residence band the first partner did not use can be added to the survivor's when they die. If none was used, both double — £650,000 and £350,000, which is where the £1 million figure for couples comes from.
The 36% charity rate
If at least 10% of the estate's "baseline" goes to charity, the rate on the rest falls from 40% to 36%. The baseline is the estate after exemptions such as a spouse's share and after the nil-rate band — but not after the residence band. The calculator checks this for you and says how much would need to go to charity to qualify.
What this leaves out
Gifts made in the 7 years before death can be taxed, with taper relief reducing the tax on gifts made 3 to 7 years before. Business and agricultural relief, trusts and assets abroad also change the answer. For a real estate, the executor works it out with HMRC; this is an estimate to help you plan.
Common questions
How much is Inheritance Tax?
40% of the part of the estate above the tax-free threshold, or 36% if at least 10% of the estate's baseline goes to charity.
What is the Inheritance Tax threshold in 2026?
£325,000, plus a residence nil-rate band of up to £175,000 when a home is left to children or grandchildren. Both are frozen until 5 April 2031.
Can a married couple pass on £1 million tax-free?
Yes, if the first to die leaves everything to the other and uses none of their allowances, and the home goes to children or grandchildren: two nil-rate bands of £325,000 and two residence bands of £175,000 make £1 million, as long as the estate is under £2 million.
What happens to the residence band above £2 million?
It reduces by £1 for every £2 the estate is worth over £2 million. A single person's £175,000 is gone completely at £2.35 million.
Do beneficiaries pay Inheritance Tax?
Normally no. Tax is paid to HMRC out of the estate by the executor. People who received gifts may have to pay if the person gave away more than £325,000 and died within 7 years.
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