Inheritance Tax Calculator
Estimate how much Inheritance Tax an estate would pay, and how much passes on tax-free.
The estate
Anything left to a husband, wife or civil partner is free of Inheritance Tax. Gifts made in the 7 years before death may also count. Get professional advice for a real estate.
Worked examples
- £650,000 estate, home left to children: £325,000 + £175,000 is tax-free, so £150,000 is taxed at 40%: £60,000.
- £900,000 estate, widow with her late husband’s unused allowances: £650,000 + £350,000 = £1 million tax-free, so nothing to pay.
- £2.2 million estate, home to children: the residence band is cut by £100,000 to £75,000, so £1.8 million is taxed: £720,000.
Thresholds are frozen until April 2031.
Sources
Figures are checked against these official sources. Last reviewed 7 November 2026.
Common questions
How much can I leave tax-free?
Everyone has a £325,000 nil-rate band. If you leave your home to children or grandchildren you also get a residence nil-rate band of up to £175,000. Unused allowances pass to a surviving spouse or civil partner, so a couple can leave up to £1 million.
What is the Inheritance Tax rate?
40% on the amount above your allowances, or 36% if you leave at least 10% of your estate to charity.
Are pensions included?
From 6 April 2027 most unused pension funds and death benefits count as part of the estate for Inheritance Tax.
What happens to large estates?
The residence nil-rate band is reduced by £1 for every £2 the estate is worth over £2 million.
What changed for farms and businesses?
From 6 April 2026 the first £1 million of qualifying agricultural and business property gets 100% relief and anything above it gets 50% relief.