Inheritance Tax (IHT) Calculator 2025-26
Calculate UK Inheritance Tax on estates in 2025-26. IHT is charged at 40% on the taxable portion of an estate. The nil-rate band (NRB) is £325,000 per person — meaning many estates pay no IHT at all.
IHT thresholds 2025-26
Single person — NRB only (£325,000 threshold)
No main residence left to direct descendants, or renting/no property.
| Estate value | IHT (40%) | Net estate | Effective rate | |
|---|---|---|---|---|
| £200,000 | — | £200,000 | 0% | Details → |
| £300,000 | — | £300,000 | 0% | Details → |
| £325,000 | — | £325,000 | 0% | Details → |
| £350,000 | £10,000 | £340,000 | 2.86% | Details → |
| £400,000 | £30,000 | £370,000 | 7.5% | Details → |
| £450,000 | £50,000 | £400,000 | 11.11% | Details → |
| £500,000 | £70,000 | £430,000 | 14% | Details → |
| £550,000 | £90,000 | £460,000 | 16.36% | Details → |
| £600,000 | £110,000 | £490,000 | 18.33% | Details → |
| £650,000 | £130,000 | £520,000 | 20% | Details → |
| £700,000 | £150,000 | £550,000 | 21.43% | Details → |
| £750,000 | £170,000 | £580,000 | 22.67% | Details → |
| £800,000 | £190,000 | £610,000 | 23.75% | Details → |
| £900,000 | £230,000 | £670,000 | 25.56% | Details → |
| £1,000,000 | £270,000 | £730,000 | 27% | Details → |
| £1,200,000 | £350,000 | £850,000 | 29.17% | Details → |
| £1,500,000 | £470,000 | £1,030,000 | 31.33% | Details → |
| £2,000,000 | £670,000 | £1,330,000 | 33.5% | Details → |
| £2,500,000 | £870,000 | £1,630,000 | 34.8% | Details → |
| £3,000,000 | £1,070,000 | £1,930,000 | 35.67% | Details → |
Single person + Residence NRB (£500,000 threshold)
Leaving main home to children or grandchildren. RNRB adds £175,000 to the threshold.
| Estate value | IHT (40%) | Net estate | Effective rate | |
|---|---|---|---|---|
| £200,000 | — | £200,000 | 0% | Details → |
| £300,000 | — | £300,000 | 0% | Details → |
| £325,000 | — | £325,000 | 0% | Details → |
| £350,000 | — | £350,000 | 0% | Details → |
| £400,000 | — | £400,000 | 0% | Details → |
| £450,000 | — | £450,000 | 0% | Details → |
| £500,000 | — | £500,000 | 0% | Details → |
| £550,000 | £20,000 | £530,000 | 3.64% | Details → |
| £600,000 | £40,000 | £560,000 | 6.67% | Details → |
| £650,000 | £60,000 | £590,000 | 9.23% | Details → |
| £700,000 | £80,000 | £620,000 | 11.43% | Details → |
| £750,000 | £100,000 | £650,000 | 13.33% | Details → |
| £800,000 | £120,000 | £680,000 | 15% | Details → |
| £900,000 | £160,000 | £740,000 | 17.78% | Details → |
| £1,000,000 | £200,000 | £800,000 | 20% | Details → |
| £1,200,000 | £280,000 | £920,000 | 23.33% | Details → |
| £1,500,000 | £400,000 | £1,100,000 | 26.67% | Details → |
| £2,000,000 | £600,000 | £1,400,000 | 30% | Details → |
| £2,500,000 | £870,000 | £1,630,000 | 34.8% | Details → |
| £3,000,000 | £1,070,000 | £1,930,000 | 35.67% | Details → |
Married couple / civil partners + RNRB (up to £1,000,000 threshold)
Combined estate on second death. Full NRB transferred from first death. Leaving home to children or grandchildren. RNRB tapers above £2,000,000.
| Estate value | Total threshold | IHT (40%) | Net estate | |
|---|---|---|---|---|
| £200,000 | £1,000,000 | — | £200,000 | Details → |
| £300,000 | £1,000,000 | — | £300,000 | Details → |
| £325,000 | £1,000,000 | — | £325,000 | Details → |
| £350,000 | £1,000,000 | — | £350,000 | Details → |
| £400,000 | £1,000,000 | — | £400,000 | Details → |
| £450,000 | £1,000,000 | — | £450,000 | Details → |
| £500,000 | £1,000,000 | — | £500,000 | Details → |
| £550,000 | £1,000,000 | — | £550,000 | Details → |
| £600,000 | £1,000,000 | — | £600,000 | Details → |
| £650,000 | £1,000,000 | — | £650,000 | Details → |
| £700,000 | £1,000,000 | — | £700,000 | Details → |
| £750,000 | £1,000,000 | — | £750,000 | Details → |
| £800,000 | £1,000,000 | — | £800,000 | Details → |
| £900,000 | £1,000,000 | — | £900,000 | Details → |
| £1,000,000 | £1,000,000 | — | £1,000,000 | Details → |
| £1,200,000 | £1,000,000 | £80,000 | £1,120,000 | Details → |
| £1,500,000 | £1,000,000 | £200,000 | £1,300,000 | Details → |
| £2,000,000 | £1,000,000 | £400,000 | £1,600,000 | Details → |
| £2,500,000 | £750,000 | £700,000 | £1,800,000 | Details → |
| £3,000,000 | £650,000 | £940,000 | £2,060,000 | Details → |
How UK Inheritance Tax works in 2025-26
Inheritance Tax (IHT) is charged on the value of an estate when someone dies. HMRC values the entire estate — including property, savings, investments, and possessions — and charges 40% on the amount above the available nil-rate band.
The standard nil-rate band (NRB) is £325,000 and has been frozen since 2009. It will remain frozen until April 2028. In addition to the NRB, there is the residence nil-rate band (RNRB) of £175,000, available when the family home is left to direct descendants (children, grandchildren, or their spouses).
Married couples and transferable nil-rate band
When the first spouse or civil partner dies, any unused nil-rate band and RNRB can be transferred to the surviving spouse. This means a couple who both leave their estate (including the family home) to their children can have a combined threshold of up to £1,000,000 before IHT applies.
The RNRB tapers above a £2,000,000 estate: it reduces by £1 for every £2 of estate above this threshold, disappearing entirely at £2,350,000 (single) or £2,700,000 (couple).
Key IHT exemptions and reliefs
Gifts to a spouse or civil partner are entirely exempt from IHT. The annual gift allowance of £3,000 per year is also exempt. Larger gifts are potentially exempt if the giver survives 7 years (the "seven-year rule"). Business Property Relief (BPR) can eliminate IHT on qualifying business assets, and Agricultural Property Relief (APR) does the same for farmland and buildings.