What is inheritance tax?

Inheritance tax is a tax paid by a person who inherits money or property from someone who has died. Unlike estate tax (which is paid by the estate), inheritance tax is paid by the beneficiary. Not all countries or states charge inheritance tax.

Is inheritance tax the same as estate tax?

No, they differ. Estate tax is levied on the total value of the deceased person's estate before distribution to beneficiaries. Inheritance tax is paid by the beneficiary on what they receive. The US has a federal estate tax but no federal inheritance tax.

Who is exempt from inheritance tax?

Spouses are typically exempt from inheritance tax in most jurisdictions. Other exemptions may include charities, minor children, and transfers below certain thresholds. Exemptions vary significantly by country and state.

How is inheritance tax calculated?

Inheritance tax is calculated by determining the estate value, subtracting allowable deductions and exemptions, applying the applicable tax rate, and dividing remaining tax among beneficiaries based on their inheritance shares.

Are inherited assets taxable?

Inherited assets are generally not subject to income tax. However, any income generated by inherited assets (such as interest, dividends, or rental income) is taxable. Capital gains tax may apply when you sell inherited assets.

Can gifts reduce inheritance tax?

Yes, making lifetime gifts can reduce inheritance tax liability in many jurisdictions. Gifts made more than 7 years before death often fall outside the estate for tax purposes. Annual gift allowances also apply in many countries.

Do all countries charge inheritance tax?

No. Many countries have abolished inheritance and estate taxes, including Australia, Canada, New Zealand, Sweden, and Russia. Others like the US and UK have significant exemptions before tax applies.

How accurate is this calculator?

This calculator provides estimates based on common tax rules for each jurisdiction. Actual tax liability depends on specific circumstances, state laws, and professional assessment. Use this as a planning tool and consult a tax professional.

Inheritance Tax Calculator

Estimate inheritance taxes, estate taxes, and net inheritance by jurisdiction

Finance

Calculator

Input Values

Country*

State/Province (optional)

Total Estate Value ($)*

Outstanding Debts ($)

Funeral Expenses ($)

Charitable Donations ($)

Spouse Exemption?

YesNo

Number of Beneficiaries

Lifetime Gifts Made ($)

Other Allowable Deductions ($)

Ready to Calculate

Enter estate details, select your country, and click Calculate to estimate inheritance taxes and net inheritance.

About This Tool

Estimate inheritance and estate taxes based on your jurisdiction. The calculator applies country-specific tax rules, exemptions, and rates.

Country rules applied:

US: $13.61M exemption, 40% rate
UK: £325K threshold, 40% rate
Canada: Capital gains model
AU/NZ: No inheritance tax

Quick Example

$2M estate in the United States with 2 beneficiaries:

Estate Value$2,000,000

Deductions$175,000

Tax Exemption$13,610,000

Tax Due$0 (under limit)

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