Inheritance Tax calculator
Estimate the Inheritance Tax on an estate in England and Wales, with every step of the calculation and the rule behind it: the nil rate band, a late spouse's unused band, gifts in the 7 years before death, the residence nil rate band and its taper, and the reduced 36% rate for gifts to charity.
General information worked out with the standard rules — not advice on a particular estate. Today the nil rate band is £325,000 and the residence nil rate band is up to £175,000; both are fixed at these amounts until 5 April 2031. For an earlier death, enter its date: the calculator uses the bands that applied then.
Work out the tax
Rough figures are fine. The result updates as you type; nothing you enter leaves your browser.
Result
Enter the value of everything they owned to see the tax.
A general calculation with the standard rules. It leaves out business and agricultural relief, trusts, foreign tax, the downsizing addition and interest, and it is not advice on a particular estate.
How the calculation works
1. The estate
The estate is everything the person owned when they died — their home, money, investments, belongings and their share of anything owned jointly — at its open market value on the date of death. Debts they owed and reasonable funeral costs are taken off (IHTA 1984 s.5, s.160, s.162 and s.172).
2. Exempt gifts in the will
Everything left to a husband, wife or civil partner is exempt (s.18) — in full when both were long-term UK residents. So is everything left to a UK charity (s.23). What is left is the chargeable estate.
3. The nil rate band, and a late spouse's unused band
The first £325,000 is taxed at 0% (s.7 and Schedule 1). If a husband, wife or civil partner died first and did not use all of their nil rate band — often because everything went to the survivor — the unused percentage is added to the survivor's band, up to a second £325,000 (s.8A–8C; IHTM43020). It is claimed on Schedule IHT402.
4. Gifts in the 7 years before death
Gifts that are not exempt become chargeable if the giver dies within 7 years (s.3A). They use the nil rate band first, oldest gift first, leaving less for the estate (IHTM14515). If they come to more than the nil rate band, the part above it is taxed at 40%, reduced by taper relief for gifts made more than 3 years before death; that tax is normally paid by the people who received the gifts (s.7(4); IHTM14612).
5. The residence nil rate band and the taper
For deaths on or after 6 April 2017, a further band of up to £175,000 applies when a home the person lived in — or their share of it — goes to children, grandchildren or other direct descendants, including step-, adopted and foster children and their husbands, wives and civil partners (s.8D–8M). A late spouse's unused residence band can be brought forward too (s.8G; IHTM46040).
The band goes down by £1 for every £2 by which the estate, after debts but before exemptions and reliefs, is worth more than £2,000,000 (s.8D(5); IHTM46023). It can never be more than the value of the home that goes to direct descendants (IHTM46020), and it never reduces tax on gifts (IHTM46003).
6. The 36% rate for gifts to charity
If gifts to charity are at least 10% of the ‘baseline amount’, the estate is taxed at 36% instead of 40% (Schedule 1A; IHTM45002). The baseline amount is the chargeable estate, less the nil rate band available (including a transferred band, after gifts), plus the charity gifts. The residence nil rate band is not taken off for this test (IHTM45009), although it still reduces the tax. The claim is made on Schedule IHT430.
7. The tax
What is left of the chargeable estate after the residence nil rate band and the nil rate band is taxed at 40% — or 36% when the charity test is met. Tax is due by the end of the sixth month after the month of death; interest runs after that (s.226 and s.233).
Worked examples
Example 1: a widow leaves her home to her children
Margaret died in May 2026. Her husband died in 2015 and left everything to her, so none of his nil rate band or residence nil rate band was used. She owned £1,150,000 in total, including her home worth £500,000, which goes to her two children. Her debts and funeral cost £10,000.
| Step | Amount |
|---|---|
| Everything they ownedIncluding the home and their share of anything owned jointly, at the date of death.IHTA 1984 s.5, s.160 | £1,150,000 |
| Debts and funeral costsIHTA 1984 s.162, s.172 | minus £10,000 |
| Net estate | £1,140,000 |
| Nil rate bandThe tax-free threshold everyone has.IHTA 1984 s.7, Sch 1 | £325,000 |
| Transferred from a late husband, wife or civil partner (100% unused)IHTA 1984 s.8A–8C; Schedule IHT402 | plus £325,000 |
| Nil rate band left for the estate | £650,000 |
| Residence nil rate bandFor a home that goes to direct descendants.IHTA 1984 s.8D(5)(a) | £175,000 |
| Brought forward from a late husband, wife or civil partner (100% unused)IHTA 1984 s.8G; Schedule IHT436 | plus £175,000 |
| Residence nil rate band for this estate | £350,000 |
| Taxable after the allowances£1,140,000 less the residence nil rate band £350,000 and the nil rate band left £650,000.IHTA 1984 s.7, s.8D(2) | £140,000 |
| Inheritance Tax at 40%IHTA 1984 Sch 1 | £56,000 |
Result: Inheritance Tax of £56,000.
Example 2: a larger estate, the taper and the 36% rate
David died in May 2026, divorced. He owned £2,130,000 and owed £30,000, so his net estate is £2,100,000. His home, worth £500,000, goes to his daughter, and his will leaves £200,000 to charity.
| Step | Amount |
|---|---|
| Everything they ownedIncluding the home and their share of anything owned jointly, at the date of death.IHTA 1984 s.5, s.160 | £2,130,000 |
| Debts and funeral costsIHTA 1984 s.162, s.172 | minus £30,000 |
| Net estate | £2,100,000 |
| Gifts to charity in the will (exempt)IHTA 1984 s.23 | minus £200,000 |
| Chargeable estate | £1,900,000 |
| Nil rate bandThe tax-free threshold everyone has.IHTA 1984 s.7, Sch 1 | £325,000 |
| Residence nil rate bandFor a home that goes to direct descendants.IHTA 1984 s.8D(5)(a) | £175,000 |
| Taper: £1 for every £2 the net estate is over £2,000,000£2,100,000 is £100,000 over the threshold.IHTA 1984 s.8D(5)(g); IHTM46023 | minus £50,000 |
| Residence nil rate band for this estate | £125,000 |
| 36% test: charity gifts £200,000 against 10% of the baseline amount (£177,500)Baseline amount £1,775,000: the chargeable estate less the nil rate band left (not the residence band), plus the charity gifts. The test is met: the rate is 36%.IHTA 1984 Sch 1A; IHTM45009 | |
| Taxable after the allowances£1,900,000 less the residence nil rate band £125,000 and the nil rate band left £325,000.IHTA 1984 s.7, s.8D(2) | £1,450,000 |
| Inheritance Tax at 36%IHTA 1984 Sch 1A para 1 | £522,000 |
| At 40% it would be £580,000 |
Result: Inheritance Tax of £522,000.
What the calculator leaves out
- Business and agricultural relief (changed from 6 April 2026), trusts and gifts with reservation of benefit.
- Houses and land abroad, foreign tax and double taxation relief.
- The downsizing addition to the residence nil rate band, grossing up of tax-free legacies and quick succession relief.
- Unused pension funds, which count towards the estate for deaths on or after 6 April 2027.
- Interest for late payment and paying by instalments.
The full account is form IHT400 with its schedules; HMRC's own IHT400 Notes and IHT400 Calculation set out the working.
Does the estate need an IHT400?
Many estates are ‘excepted’: their values go on the probate application and no IHT400 is needed. Our free check says which applies, which schedules this estate needs and which documents to gather.
Questions
How much can someone leave before Inheritance Tax is due?
Everyone has a nil rate band of £325,000. When a home goes to children or grandchildren, the residence nil rate band adds up to £175,000. Anything left to a husband, wife, civil partner or charity is exempt, and a widow or widower can add the unused bands of their late spouse — up to £1 million in total when the home goes to direct descendants. The bands are fixed at these amounts until 5 April 2031.
What is the residence nil rate band taper?
For an estate worth more than £2,000,000 after debts (before exemptions and reliefs), the residence nil rate band goes down by £1 for every £2 above £2,000,000. A single person's band is gone at £2.35 million; with a late spouse's full band added, at £2.7 million (IHTA 1984 s.8D(5); IHTM46023).
Do gifts made before death count?
Gifts made in the 7 years before death that are not exempt use up the nil rate band first, oldest first. If they come to more than the nil rate band, tax is due on the excess — normally paid by the people who received the gifts — and taper relief reduces that tax for gifts made more than 3 years before death. The residence nil rate band never covers gifts (IHTA 1984 s.3A and s.7; IHTM14515, IHTM46003).
How does the 36% rate work?
If gifts to charity in the will are at least 10% of the 'baseline amount', the rest of the estate is taxed at 36% instead of 40%. The baseline amount is the chargeable estate less the nil rate band available (including any transferred band, after gifts), plus the charity gifts. The residence nil rate band is left out of it (IHTA 1984 Sch 1A; IHTM45009). The claim is made on Schedule IHT430.
When does Inheritance Tax have to be paid?
By the end of the sixth month after the month of death. HMRC charges interest on tax paid after that, whatever the reason for the delay. Tax on a house or land can be paid in 10 yearly instalments, with interest (IHTA 1984 s.226, s.227 and s.233).
Do pensions count towards the estate?
For deaths before 6 April 2027, most unused pension funds and pension death benefits are outside the estate. For deaths on or after 6 April 2027, unused pension funds and most death benefits count towards it (Finance Act 2026). This calculator does not include them yet.
Is this the same as HMRC's calculation?
It follows the same rules for a straightforward estate, but HMRC works out the tax from the full account — form IHT400, its schedules and the IHT400 Calculation — and may check the values. Reliefs for businesses and farms, trusts, foreign tax and some special cases are not included here.
Sources
- Inheritance Tax Act 1984 (legislation.gov.uk): ss.3A, 5, 7, 8A–8M, 18, 23, 160–172, 226–233 and Schedules 1 and 1A.
- HMRC Inheritance Tax Manual: IHTM14515, IHTM14612, IHTM43020, IHTM46020, IHTM46023, IHTM46040, IHTM45002, IHTM45009.
- GOV.UK: Inheritance Tax thresholds and the residence nil rate band.
Contains public sector information licensed under the Open Government Licence v3.0. Checked against the rules in force on 5 October 2026.