Inheritance Tax Calculator
Estimate your UK inheritance tax liability for 2026/27. Your data never leaves your browser.
IHT Quick Reference (Individual, No RNRB)
| Estate Value | Taxable Amount | IHT at 40% |
|---|---|---|
| £325,000 | £0 | £0 |
| £400,000 | £75,000 | £30,000 |
| £500,000 | £175,000 | £70,000 |
| £750,000 | £425,000 | £170,000 |
| £1,000,000 | £675,000 | £270,000 |
| £1,500,000 | £1,175,000 | £470,000 |
| £2,000,000 | £1,675,000 | £670,000 |
How UK Inheritance Tax Works
Inheritance Tax (IHT) is paid on the value of a person's estate when they die, if it exceeds certain thresholds. The estate includes property, savings, investments, and possessions, minus any debts and funeral costs.
The nil-rate band (NRB)
Every individual has a nil-rate band of £325,000. Anything within this threshold is tax-free. This allowance has been frozen at £325,000 since 2009 and is set to remain at this level until at least April 2028.
The residence nil-rate band (RNRB)
An additional £175,000 is available if you leave your main home (or a share of it) to direct descendants, including children, stepchildren, adopted children, or grandchildren. The RNRB is capped at the value of the property being passed on.
Transferable allowances for married couples
If your spouse or civil partner died and did not use all of their NRB and RNRB, the unused portion can be added to your estate's thresholds. This means a surviving spouse can potentially have up to £1,000,000 in combined allowances.
The RNRB taper
For estates worth more than £2 million, the RNRB is reduced by £1 for every £2 above this threshold. For a single person, the full £175,000 RNRB is completely removed once the estate reaches £2,350,000.
Charity relief
If 10% or more of the net estate (the amount above all nil-rate bands) is left to qualifying charities, the IHT rate drops from 40% to 36%. This means giving more to charity can sometimes reduce the overall tax bill for beneficiaries as well.