---
title: "Inheritance tax calculator"
description: "Free England and Wales IHT calculator: £325,000 nil-rate band plus £175,000 residence band, 40% above the threshold."
url: "https://swiftwill.co.uk/tools/inheritance-tax-calculator/"
author: "Marcus Kaiser"
date_modified: "2026-08-12"
---

# Inheritance tax calculator

Use our free 2026 Inheritance Tax calculator for England and Wales to calculate your total tax-free allowance (£325,000 nil-rate band + £175,000 residence band) and estimate any tax due at 40%.

> SwiftWill provides legal information and software for England & Wales under Section 9 of the Wills Act 1837. Figures are taken from gov.uk, legislation.gov.uk and HMCTS, checked 12 August 2026. We have not given you legal advice — this is general information.

## How does UK inheritance tax work?

Inheritance Tax (IHT) is a tax on the estate (the property, money and possessions) of someone who has died. In England and Wales, you usually do not have to pay Inheritance Tax if:

- The value of your estate is below the £325,000 Nil-Rate Band threshold.
- You leave everything above the threshold to your spouse or civil partner.
- You leave everything above the threshold to an exempt beneficiary, such as a UK registered charity.

## What is the residence nil-rate band?

If you own a home and leave it to direct descendants (children, stepchildren, or grandchildren), you get an additional £175,000 tax-free allowance called the Residence Nil-Rate Band. Combined with the £325,000 base allowance, an individual can pass on up to £500,000 tax-free.

For married couples, unused allowances transfer to the surviving spouse, allowing couples to pass on up to **£1,000,000 tax-free**.

## Frequently asked questions

### What is the Inheritance Tax threshold for 2026?

The standard Nil-Rate Band is £325,000 per person. If you leave your main home to children or grandchildren, you get an extra £175,000 Residence Nil-Rate Band, giving a total tax-free threshold of £500,000 per person (£1,000,000 for a married couple).

### How does a surviving spouse double the tax-free allowance?

Gifts between spouses or civil partners are 100% tax-free. Additionally, any unused proportion of a deceased spouse's £325,000 nil-rate band and £175,000 residence band transfers automatically to the surviving spouse, creating a combined £1m tax-free allowance.

### Does leaving money to charity reduce Inheritance Tax?

Yes. Gifts to UK registered charities are 100% exempt from Inheritance Tax. Furthermore, if you leave 10% or more of your net estate to charity, the tax rate on the rest of your taxable estate drops from 40% to 36%.

Canonical HTML: https://swiftwill.co.uk/tools/inheritance-tax-calculator/
Markdown: https://swiftwill.co.uk/tools/inheritance-tax-calculator.md
Last modified: 2026-08-12
Author: Marcus Kaiser (https://swiftwill.co.uk/author/marcus-kaiser/)