Estimate Inheritance Tax on an estate for deaths in the 2026/27 tax year.
| Item | Amount |
|---|
Nil rate band £325,000 and residence nil rate band £175,000 (tapered by £1 for every £2 the estate is over £2 million). Rate 40%, or 36% if at least 10% of the baseline amount goes to charity. Does not include lifetime gifts, trusts, business or agricultural relief. An estimate, not legal advice.
Planning your estate or dealing with a loved one's affairs? This inheritance tax calculator UK estimates the tax due on an estate using the £325,000 nil rate band, the £175,000 residence nil rate band and the exemptions explained in the GOV.UK Inheritance Tax guide, so you can see how much of the estate passes to the people you choose.
Quick answer: An inheritance tax calculator UK charges 40% on the estate left after debts, exempt gifts and thresholds. Everyone has a £325,000 nil rate band, and a home left to children or grandchildren adds up to £175,000, giving £500,000. Gifts to a spouse or charity are exempt, and the rate falls to 36% when 10% goes to charity.
In This Guide
What Is Inheritance Tax?
Inheritance Tax (IHT) is a tax on the estate of someone who has died, covering their property, money and possessions after debts. Everyone has a nil rate band of £325,000. If a home goes to children or grandchildren, the residence nil rate band adds up to £175,000 more, giving £500,000. Anything left to a spouse, civil partner or charity is exempt, and a surviving partner can inherit any unused bands.
The formula is: IHT = (estate minus debts minus exempt gifts minus thresholds) × 40%. The rate falls to 36% when at least 10% of the net estate goes to charity. For estates worth over £2 million, the residence nil rate band is reduced by £1 for every £2 above that level.
How to Use the Inheritance Tax Calculator UK
Step 1: Enter the Estate Value and Debts
Add up property, savings, investments and possessions, then enter debts such as a mortgage and reasonable funeral costs. Overpaying a mortgage swaps cash for a smaller debt, so the net estate barely changes, and our mortgage overpayment calculator shows what overpaying saves in interest.
Step 2: Enter the Home Left to Descendants
Enter the value of the home, or the share of it, that passes to children, stepchildren or grandchildren. Leave it at zero if the home goes to anyone else, as the residence band will not apply.
Step 3: Add Exempt Gifts and Transfers
Enter amounts left to a spouse, civil partner or charity. If a late spouse did not use their bands, enter the unused percentage, which is often 100% when everything passed to the survivor.
Step 4: Read Your Results
You will see the tax due, the total threshold and the effective rate. Property values rise over time, so the inflation calculator helps you see how a frozen £325,000 band loses real value year after year.
Inheritance Tax Examples
| Situation | Net estate | Threshold | IHT due |
|---|---|---|---|
| Single, no home to children | £400,000 | £325,000 | £30,000 |
| Single, home to children | £600,000 | £500,000 | £40,000 |
| Widowed, full transfers, home to children | £1,200,000 | £1,000,000 | £80,000 |
| Single, home to children, over £2m | £2,200,000 | £400,000 | £720,000 |
Gifts made in the seven years before death can also be taxed, and the HMRC residence nil rate band guidance explains who counts as a direct descendant, so take professional advice on larger or more complex estates. Tax is normally due by the end of the sixth month after death.
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How we checked this tool: the Tools Veria Editorial Team built this tool by hand, checked it against the official rules or published standards where they apply, and tested it against worked examples. Results are estimates for planning, not personal financial or tax advice. Read our editorial policy and disclaimer, or report an error.
Frequently Asked Questions
What is the Inheritance Tax threshold in 2026/27?
The nil rate band is £325,000. The residence nil rate band adds up to £175,000 when a home passes to direct descendants.
Can a married couple pass on £1 million tax free?
Yes, in many cases. Unused bands transfer to the surviving spouse, giving up to £650,000 plus £350,000 of residence band when the home goes to children.
What is the Inheritance Tax rate?
The standard rate is 40% on the value above the threshold. It drops to 36% if at least 10% of the net estate is left to charity.
When is the residence nil rate band reduced?
It is reduced by £1 for every £2 that the estate is worth over £2 million, and lost entirely at £2.35 million for a single person.
Is anything left to a spouse taxed?
No. Gifts to a spouse or civil partner who lives in the UK permanently are exempt from Inheritance Tax.
Do gifts made before death count?
Gifts made within seven years of death may be taxed if they use up the threshold, with taper relief for gifts made 3 to 7 years before death.