Inheritance Tax Calculator 2025-26

Estimate inheritance tax liability on your estate. Includes nil-rate band, residence nil-rate band and spouse exemption.

Last updated: April 2026 · Source: GOV.UK — Inheritance Tax thresholds

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Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Inheritance Tax (IHT) is charged at 40% on the value of an estate above the nil-rate band of £325,000. An additional residence nil-rate band (RNRB) of £175,000 is available when passing a home to direct descendants (children or grandchildren), giving a potential threshold of £500,000 per person.

Married couples and civil partners can transfer unused nil-rate bands to the surviving partner, potentially giving a combined threshold of £1 million. The rate is reduced to 36% if at least 10% of the net estate is left to qualifying charities.

The RNRB is tapered for estates above £2 million, reducing by £1 for every £2 above this threshold. Gifts made within 7 years of death may also be subject to IHT on a sliding scale (taper relief).

Example: £750,000 estate, home to children

  1. Estate value: £750,000
  2. Less nil-rate band: −£325,000
  3. Less residence nil-rate band: −£175,000
  4. Taxable estate: £250,000
  5. IHT at 40%: £100,000

Source: GOV.UK — Inheritance Tax thresholds

Frequently Asked Questions

What is the Inheritance Tax threshold for 2025/26?
The nil-rate band (threshold) is £325,000. There is an additional residence nil-rate band of £175,000 if you pass your home to direct descendants, giving a potential combined threshold of £500,000 per person or £1 million for a married couple.
What is the Inheritance Tax rate?
Inheritance Tax is charged at 40% on the value of the estate above the nil-rate band. The rate is reduced to 36% if at least 10% of the net estate is left to charity.