Inheritance Tax Calculator 2026/27 (UK IHT)
Estimate how much inheritance tax an estate might pay, including the extra allowance for passing your home to children or grandchildren.
Estimates for information only, using 2026/27 rates for England, Wales and Northern Ireland unless stated. Not financial or tax advice; check your own situation with HMRC or a qualified adviser.
How it works
Everyone has a £325,000 nil-rate band. Leaving a home to direct descendants adds a residence nil-rate band of up to £175,000.
Unused bands from a late husband, wife or civil partner can be transferred, so a couple can pass on up to £1 million tax-free.
The residence band reduces by £1 for every £2 the estate is worth over £2 million. Tax is 40% on the amount above the bands, or 36% if at least 10% of the net estate goes to charity. Anything left to a spouse or civil partner is exempt.
Frequently asked questions
How much can I leave tax-free?+
Up to £500,000 on your own (if you leave your home to children), and up to £1 million as a married couple or civil partners.
Are gifts taxed?+
Gifts you make more than 7 years before death are usually outside your estate. There's also a £3,000 annual gift exemption.
Are pensions included?+
Unused pension pots are due to be brought into inheritance tax from April 2027. Check current guidance for your situation.