Estimate inheritance taxes, estate taxes, and net inheritance by jurisdiction
Enter estate details, select your country, and click Calculate to estimate inheritance taxes and net inheritance.
Estimate inheritance and estate taxes based on your jurisdiction. The calculator applies country-specific tax rules, exemptions, and rates.
Country rules applied:
$2M estate in the United States with 2 beneficiaries:
Our Inheritance Tax Calculator applies country-specific tax rules to estimate the potential tax liability on an estate. The calculation follows a systematic process that mirrors how tax authorities in each jurisdiction determine inheritance and estate taxes.
Assess Gross Estate Value
The calculator takes the total value of all assets including property, investments, cash, and personal belongings.
Subtract Allowable Deductions
Outstanding debts, funeral expenses, charitable donations, and other allowable deductions reduce the taxable estate value.
Apply Jurisdiction Exemptions
Each country has specific tax-free thresholds. The US exempts up to $13.61M, the UK applies a £325K nil-rate band plus residence allowance, Canada uses spousal rollover, and Australia/NZ have no inheritance tax.
Calculate Tax on Taxable Estate
The remaining taxable amount is multiplied by the applicable tax rate — 40% for US and UK, or 0% for countries without inheritance tax.
Distribute Net Inheritance
After taxes and deductions, the remaining estate is divided by the number of beneficiaries to show each person's estimated inheritance.
The calculator automatically detects which country's rules to apply based on your selection. It adjusts exemptions, tax rates, and spousal deductions accordingly. Visual charts and detailed breakdowns help you understand exactly how the tax is calculated and where every dollar goes.
Inheritance tax is a tax paid by individuals who receive money or property from someone who has died. Unlike estate tax, which is deducted from the estate before beneficiaries receive their share, inheritance tax is calculated based on what each individual beneficiary inherits. This distinction is important because it means the same estate can result in different tax outcomes for different beneficiaries, depending on their relationship to the deceased and the jurisdiction's rules.
In the United States, inheritance tax exists only at the state level. Six states currently impose it: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Each state has its own rate structure, exemption thresholds, and relationship-based classifications. Spouses are universally exempt, and direct descendants generally receive the most favorable treatment. The federal government does not impose an inheritance tax — it levies an estate tax, which is paid by the estate itself rather than by beneficiaries.
Internationally, inheritance tax rules vary dramatically. The United Kingdom charges inheritance tax at 40% on estates valued above £325,000, with additional allowances for passing a home to children. Canada does not have a formal inheritance tax but applies capital gains tax through deemed disposition rules at death. Australia and New Zealand abolished inheritance tax decades ago — in 1979 and 1992 respectively — making them tax-free jurisdictions for inheritance purposes.
Whether inheritance tax applies depends on three factors: the deceased person's country or state of residence, the total value of the estate, and the relationship between each beneficiary and the deceased. Some jurisdictions exempt all transfers to close family members, while others tax even direct descendants. Understanding these rules is essential for effective estate planning and ensuring your assets pass to your loved ones with minimal tax burden.
Why do countries have different rules? Inheritance tax policy reflects each nation's approach to wealth redistribution, family protection, and revenue generation. Countries with high inheritance taxes often fund social programs and aim to reduce wealth inequality. Countries without inheritance taxes tend to prioritize capital accumulation, family wealth preservation, and attracting wealthy residents. The trend in recent decades has been toward reducing or eliminating inheritance taxes — several countries have abolished them since 2000, and the US federal estate tax exemption has risen dramatically.
The inheritance tax calculation follows two primary formulas applied sequentially:
Taxable Estate = Estate Value
− Outstanding Debts
− Funeral Expenses
− Charitable Donations
− Other Allowable Deductions
− Applicable Exemptions
Inheritance Tax = Taxable Estate × Applicable Tax Rate
Net Inheritance
Net Estate − Total Tax
Per Beneficiary
Net Inheritance ÷ Number of Beneficiaries
Effective Tax Rate
(Total Tax ÷ Net Estate) × 100
Total Deductions
Debts + Funeral + Charity + Other
Note: Tax rates and exemptions vary by jurisdiction. The US applies a 40% rate above $13.61M. The UK applies 40% above £325K (£500K with residence allowance). Canada, Australia, and New Zealand have no inheritance tax.
This worked example demonstrates how inheritance tax is calculated for a US estate using our calculator.
Scenario: $15 Million US Estate with Spouse and 2 Children
Input Values
Calculation Results
Key Takeaway
In this example, the $15 million estate only pays $416,000 in federal estate tax — an effective tax rate of just 2.8% — thanks to the high $13.61 million exemption. The beneficiaries receive over $14.2 million, with each child inheriting approximately $4.74 million.
Make Annual Gifts
Give up to $18,000 per person per year without using your lifetime exemption. A married couple can gift $36,000 per recipient annually, removing significant wealth from their taxable estate over time.
Establish Trusts
Use a bypass trust to maximize both spouses' federal exemptions. An irrevocable life insurance trust (ILIT) keeps life insurance proceeds outside your taxable estate. Charitable trusts reduce taxes while supporting causes you care about.
Leverage the Marital Deduction
Assets transferred to a surviving spouse are completely tax-free. Proper portability planning ensures the surviving spouse can use both federal exemptions, potentially sheltering over $27 million from estate tax.
Make Charitable Bequests
Leaving assets to qualified charities reduces your taxable estate. Options include outright bequests in your will, charitable remainder trusts that provide lifetime income, or donor-advised funds for ongoing charitable giving.
Plan Life Insurance Ownership
Life insurance proceeds paid to your estate are taxable. Structure ownership through an irrevocable trust to keep proceeds outside your estate while providing tax-free liquidity for any estate taxes due.
Consider Relocation
If you live in a state with inheritance or estate tax, moving to a tax-free state can save millions. Internationally, choosing a residence in a country without inheritance tax can eliminate the tax entirely for your heirs.
Important: Estate planning strategies should be implemented well in advance. Some strategies, like gifting, have look-back periods (7 years in the UK). Consult a qualified estate planning attorney or tax professional to develop a comprehensive plan tailored to your situation.
The Inheritance Tax Calculator is provided for informational and educational purposes only. It produces estimates based on common tax rules for the selected jurisdictions and should not be considered as professional tax advice, legal guidance, or a substitute for consultation with qualified professionals.
Tax laws are complex, vary significantly by jurisdiction, and are subject to change. This calculator may not account for all applicable state or local taxes, special circumstances, trust structures, business ownership arrangements, or recent legislative changes that could affect your actual tax liability.
We strongly recommend consulting with a licensed tax professional, estate planning attorney, or financial advisor who is familiar with the laws in your specific jurisdiction before making any estate planning decisions or filing tax returns. The accuracy of the calculator depends on the accuracy of the information you provide, and actual results may vary.
By using this calculator, you acknowledge that Measurely and its operators assume no liability for any losses, damages, or decisions made based on the calculations provided.