Inheritance Tax Calculator 2026/27
Estimate Inheritance Tax on an estate, including the residence nil-rate band, a spouse's unused allowance and the reduced rate for leaving 10% to charity.
2026/27 rates · verified 11 October 2026
Enter 0 if the home isn't left to direct descendants.
Inheritance Tax thresholds
| Allowance | Amount | Notes |
|---|---|---|
| Nil-rate band | £325,000 | Everyone; frozen until 5 April 2031 |
| Residence nil-rate band | £175,000 | Home left to direct descendants; tapered over £2 million |
| Transferable | Up to 100% | Unused bands pass to a surviving spouse or civil partner |
| Rate | 40% | 36% if 10%+ of the net estate goes to charity |
Frequently asked questions
What is the Inheritance Tax threshold?
£325,000 (the nil-rate band). It rises by up to £175,000 (the residence nil-rate band) when you leave your home to children or grandchildren, so up to £500,000 per person. These thresholds are frozen until 5 April 2031.
Can married couples pass on £1 million tax free?
Yes, potentially. Unused thresholds pass to a surviving spouse or civil partner, so a couple leaving a home to their children can have up to £1 million before Inheritance Tax.
What is the Inheritance Tax rate?
40% on the part of the estate above the threshold, or 36% on some assets if at least 10% of the net estate is left to charity.
What happens with estates over £2 million?
The residence nil-rate band is reduced by £1 for every £2 the estate is worth over £2 million, so it's lost completely at £2.35 million for one person.
Are gifts taxed?
Gifts made more than 7 years before death are usually free of Inheritance Tax. Gifts within 7 years may be taxed, with taper relief if made 3 to 7 years before. Some gifts are always exempt, like £3,000 a year and gifts to a spouse.
Related calculators
All rates, thresholds and dates on this page come from official sources, including GOV.UK, HM Revenue and Customs, the Scottish Government, Revenue Scotland and the Welsh Government. Last verified 11 October 2026.