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Inheritance Tax Calculator

Work out the Inheritance Tax on an estate: the £325,000 nil-rate band, the £175,000 for a home left to children, a late spouse’s unused allowances, charity and the 36% rate.

£

Everything owned, less debts: home, savings, investments, and from 6 April 2027 most unused pensions

£

Or grandchildren; 0 if none

Their unused allowances

More options· Left to a spouse or charity, business or farm property
£

Or civil partner: tax-free

£

Tax-free

£

Qualifying for relief

Inheritance Tax on the estate

£120,000

£300,000 is above the £500,000 of tax-free allowances, taxed at 40%. £680,000 is left after the tax.

Tax-free allowances
£500,000
Taxed at 40%
£300,000
Left after tax
£680,000

Leaving about £47,500 or more to charity would cut the rate to 36%.

What this means

Everyone has a tax-free £325,000 (the nil-rate band), plus £175,000 more if their home goes to their children or grandchildren. Anything left to a husband, wife or civil partner is tax-free, and their unused allowances pass to the survivor, so a couple can leave up to £1,000,000 tax-free.

The rest is taxed at 40%, or 36% if at least 10% goes to charity. The home allowance shrinks by £1 for every £2 an estate is worth over £2,000,000. From 6 April 2027, most unused pensions count towards the estate too.

Next step

How it’s worked out

The estate£800,000
Nil-rate band−£325,000
Residence nil-rate band−£175,000
Taxed at 40%£300,000
Inheritance Tax£120,000

By the size of the estate

Inheritance Tax and what’s left, with the same home and allowances
£3,000,000£1,500,000£0
£500k£750k£1m£1.5m£2m£2.5m£3m
Left after taxInheritance Tax
Assumptions in this estimate
  • The £325,000 and £175,000 allowances are frozen until 5 April 2031. The residence allowance can’t be more than the home’s value.
  • Gifts made in the 7 years before death use up the nil-rate band first, and aren’t included here.
  • The 36% rate is worked out on the estate after debts, other exemptions, reliefs and the nil-rate band. HMRC’s reduced rate calculator gives the exact amount needed.
  • Agricultural and Business Relief is 100% on the first £2,500,000 of qualifying property (more with a late spouse’s unused allowance) and 50% above; check which property qualifies. Assumes the deceased lived in the UK.
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How the calculator works

  1. The estate: everything owned, less debts. Anything left to a spouse, civil partner or charity is tax-free, and qualifying business or farm property gets relief.
  2. Allowances: the £325,000 nil-rate band, plus up to £175,000 if the home goes to children or grandchildren (no more than the home’s value), and any unused allowances from a late spouse or civil partner. The home allowance falls by £1 for every £2 the estate is worth over £2 million.
  3. The tax: 40% of the rest, or 36% with enough left to charity.

Examples

For a single person, or a survivor with no allowances passed on:

Estate Home to children Allowances Inheritance Tax
£500,000 None £325,000 £70,000
£800,000 £400,000 £500,000 £120,000
£1,200,000 £500,000 £500,000 £280,000
£2,100,000 £600,000 £450,000 £660,000

The £800,000 estate pays nothing if a late spouse’s allowances passed on in full: the allowances double to £1,000,000. A £1,000,000 estate with a £400,000 home pays £200,000, or £154,800 if £70,000 goes to charity, which brings the 36% rate.

Learn more

See our net worth calculator to add up an estate, the pension calculator, and the Autumn Budget calculator for what else changed.

Last updated

Frequently asked questions

How much can you inherit before paying Inheritance Tax?

The tax is on the estate, not the person inheriting. An estate pays nothing on the first £325,000, plus up to £175,000 more if the home goes to children or grandchildren: £500,000 in all. A married couple or civil partners can pass on up to £1 million, because the survivor gets the unused allowances.

What is the rate of Inheritance Tax?

40% of the part above the allowances, or 36% if at least 10% of the estate, after the nil-rate band and other exemptions, goes to charity. On an £800,000 estate with a £400,000 home left to children, it’s £120,000.

Did the Autumn Budget 2026 change Inheritance Tax?

Not the main figures: the £325,000 and £175,000 allowances stay frozen until April 2031, the rate is still 40%, and the residence allowance still tapers away above £2 million. As already legislated, most unused pensions count towards estates from 6 April 2027.

Are pensions included in Inheritance Tax?

From 6 April 2027, most unused pension funds and death benefits count towards the estate, so include them in the estate’s value for deaths from then.

What about farms and businesses?

Since 6 April 2026, Agricultural and Business Relief give 100% relief on the first £2.5 million of qualifying property, and 50% above that. A spouse’s or civil partner’s unused allowance can be passed on.