Inheritance Tax Calculator UK 2026/27
Work out how much inheritance tax an estate might owe. Our free UK IHT calculator applies the £325,000 nil-rate band, the £175,000 residence band, debts, 7-year gifts, spouse exemption and the 36% charity rate — with the full working shown.
Not financial advice. This is a simplified model for illustration. Estate planning decisions should involve an FCA-regulated financial adviser — or start with free guidance from MoneyHelper.
How to use this calculator
- Gather your figuresYou'll need the total estate value, any debts, your home's value, large gifts made in the last 7 years, and how much (if anything) is left to a spouse or to charity.
- Enter them aboveFill in the form. Tick the box if your home passes to direct descendants — that unlocks the £175,000 residence nil-rate band.
- Read your estimateThe calculator shows your net estate, the allowances applied, the taxable amount and your IHT bill at 40% — or 36% if your charitable giving qualifies.
Calculate the inheritance tax bill
Property, savings, investments, possessions — everything.
Mortgages, loans and bills owed. Leave blank for 0.
Large gifts above the annual exemption.
Exempt from IHT.
10%+ of the net estate unlocks the 36% rate.
Inheritance tax questions
How much inheritance tax will I pay?
It depends on your estate's value against your allowances: the £325,000 nil-rate band plus up to £175,000 residence nil-rate band if your home passes to direct descendants. Everything above is taxed at 40% (or 36% with enough charitable giving). Use the calculator above for your figure.
What is the inheritance tax threshold for 2026/27?
£325,000 per person, frozen until April 2031. With the residence nil-rate band, a homeowner leaving their house to children can pass on up to £500,000 tax-free — and a married couple up to £1 million with transferred allowances.
How does the 36% charity rate work?
If you leave at least 10% of your net estate to charity, the IHT rate on the taxable slice drops from 40% to 36%. The charity gifts themselves are also exempt from IHT.
Do debts reduce inheritance tax?
Yes. Debts — mortgages, loans, unpaid bills — are deducted from the estate's value before IHT is calculated, so they shrink the taxable amount.
Is there inheritance tax between spouses?
No. Transfers to a spouse or civil partner are exempt, and any unused nil-rate band transfers to the survivor — which is how couples can shelter up to £1 million.
Do pensions count toward inheritance tax?
Today, unused defined-contribution pensions usually sit outside the estate. From 6 April 2027 they count toward it — try our pension inheritance tax calculator to see the impact.
Related calculators
Sources & official guidance
Estimate only — not legal or financial advice. Rates: 2026/27. See our disclaimer.