Inheritance Tax Calculator
Calculate estate tax with progressive brackets, check whether your estate falls below the exemption threshold, or estimate how much you can save through gifting and charitable donations. Works with any currency and tax system.
Try another scenario
Calculate for your country ▼
How to Use This Calculator
Tab "Estate Tax"
Enter your total estate value (all assets combined) and the exemption amount for your jurisdiction. Then configure up to 5 progressive tax brackets with thresholds and rates. The calculator shows the taxable estate, total tax owed, effective tax rate, and net amount passing to heirs, with a full bracket-by-bracket breakdown.
Tab "Exemption Check"
Enter your estate value and the exemption threshold for a quick pass/fail check. The result shows whether your estate falls below or above the tax-free threshold, and by how much. Use this for a fast first assessment before diving into detailed bracket calculations.
Tab "Reduce the Bill"
Enter your estate value, exemption, and top tax rate, then model two common strategies: annual gifting (exclusion amount per recipient per year) and charitable donations. The calculator estimates how much each strategy removes from the taxable estate and the resulting tax savings.
The Formulas
Taxable Estate = Total Estate Value − Exemption Amount
Tax (progressive brackets):
Tax = Sum of (Bracket Width × Bracket Rate) for each bracket
Effective estate tax rate:
Effective Rate = Tax Owed / Total Estate Value × 100
Net to heirs:
Net to Heirs = Total Estate Value − Tax Owed
Gifting total:
Total Gifted = Annual Exclusion × Recipients × Years
Estimated gifting savings:
Gifting Savings = Total Gifted × Top Tax Rate
All calculations are universal. No country-specific rules, portability elections, or spousal transfers are applied. Results are estimates for planning purposes.
Worked Examples
Example 1 — Estate below US exemption: $2M estate
A US resident has an estate worth $2,000,000. The 2025 federal estate tax exemption is $13,610,000.
The estate is well below the federal exemption, so no estate tax is owed. The full $2M passes to heirs.
Example 2 — UK estate above nil-rate band: £500K estate
A UK resident has an estate worth £500,000. The nil-rate band is £325,000 and inheritance tax is 40% flat.
Although the headline rate is 40%, the effective rate on the total estate is only 14% because the first £325,000 is exempt.
Example 3 — Tax reduction through gifting and charity
Someone with a $10M estate, $1M exemption, and 40% top rate plans to gift $18,000/year to 5 people for 15 years, plus donate $1M to charity.
By combining annual gifting and charitable donations, the estimated tax bill drops by $940,000. Actual savings depend on jurisdiction-specific rules.
Understanding Estate and Inheritance Tax
What Is Estate Tax?
Estate tax (also called death tax or inheritance tax depending on the country) is a tax on the transfer of a deceased person's assets to their heirs. It applies to the total estate value above a tax-free threshold. The US, UK, Germany, Japan, South Korea, and many other countries impose some form of death-related tax.
Estate Tax vs Inheritance Tax
Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the recipients based on what they receive. The US uses an estate tax model, the UK calls it inheritance tax but taxes the estate, and Germany taxes individual inheritances with rates varying by relationship to the deceased. This calculator handles both models since the underlying math is the same.
Exemptions and Thresholds
Every jurisdiction with estate or inheritance tax provides some tax-free threshold. In the US it is $13.61 million per person (2025), in the UK it is £325,000 (nil-rate band), and in Germany it ranges from €20,000 to €500,000 depending on the relationship. Only the amount above the threshold is taxed.
Common Reduction Strategies
Annual gifting allows you to transfer wealth during your lifetime within tax-free limits. Charitable donations reduce the taxable estate. Trusts can remove assets from the estate entirely. Spousal transfers are often fully exempt. Life insurance in trust provides liquidity to pay the tax without reducing the estate. Planning well ahead is essential since many rules have look-back periods of 3 to 7 years.