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Inheritance Tax Calculator — UK, US & South Africa

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Calculate inheritance tax (IHT) for the UK, federal estate tax for the USA, and estate duty for South Africa. Shows applicable thresholds, rates, and key exemptions.

📋 3 Jurisdictions✔ UK IHT🇿🇦 SA Estate Duty

🏛️ Inheritance Tax Calculator

Results update instantly as you type

🇬🇧 United Kingdom
🇺🇸 United States
🇿🇦 South Africa
£
£
£
Estimated Inheritance / Estate Tax
£0
Enter estate value above
Tax Liability
£0
Taxable Estate
£0
Threshold/NRB
£325,000
ℹ️ Spouse transfers are exempt. Additional RNRB of £175,000 may apply for residential property passing to direct descendants.

How to Use the Inheritance Tax Calculator

1

Select your jurisdiction

Choose US federal estate tax, UK inheritance tax, South Africa estate duty, or Canada. Each has different rates, exemption thresholds, and calculation methods.

2

Enter the gross estate value

Input the total value of assets being transferred: real estate, investments, bank accounts, business interests, life insurance paid to the estate, and personal property.

3

Enter available deductions

Include the marital deduction (unlimited in US and UK), charitable bequests, funeral costs, debts of the deceased, and the applicable nil-rate band or basic exclusion amount.

4

Review tax payable against estate liquidity

Compare the estimated tax against liquid assets in the estate. A large tax bill with illiquid assets (property, business) may require planning through trusts or life insurance well before death.

Inheritance Tax by Jurisdiction

🇬🇧 United Kingdom — IHT

UK Inheritance Tax (IHT) is levied at 40% on estates above the nil-rate band (NRB) of £325,000. An additional Residence Nil-Rate Band (RNRB) of £175,000 applies when a main residence passes to direct descendants, giving a combined threshold of £500,000 per person (or £1,000,000 for a married couple if unused NRB is transferred). Transfers between spouses and civil partners are fully exempt.

🇺🇸 United States — Federal Estate Tax

The federal estate tax applies only to very large estates. The 2024 exemption is $13.61 million per individual ($27.22M for couples). The estate tax rate is 40% on amounts above the exemption. Most estates are exempt. Many states have their own separate estate or inheritance taxes with lower thresholds.

🇿🇦 South Africa — Estate Duty

South Africa levies Estate Duty at 20% on estates up to R30 million, and 25% on the balance above R30 million. There is a primary abatement of R3.5 million per deceased person (or R7 million for surviving spouses with unused abatement). Bequests to surviving spouses are fully exempt.

Understanding how estate duty works in South Africa is only part of the picture for Muslim families. Under South African law, a deceased estate is distributed according to the Will — but Islamic inheritance law (Faraid) prescribes fixed shares for each category of heir under the Quran. Where these two frameworks diverge, careful estate planning is essential. Faraid Hub provides Shariah-compliant Islamic estate planning tools and Faraid distribution calculators specifically designed to help South African Muslim families plan their estates in compliance with both SARS requirements and Islamic law. For the SA property side of estate planning — transfer duty on inherited property, estate agent costs, and property valuations — SA Property Tools covers the full suite of South African property and legal tools.

📐 UK IHT Calculation

IHT = (Estate − NRB − RNRB − Spouse − Charity) × 40%
NRB£325,000 (Nil-Rate Band)
RNRB£175,000 (if residential property to descendants)
Rate40% (or 36% if 10%+ to charity)

Inheritance Tax: How Estate Taxation Works Across Three Jurisdictions

The taxation of wealth on death is one of the most politically contested areas of tax law — and one of the most technically complex. While the popular term "inheritance tax" is used globally, the legal mechanics differ significantly between countries. Understanding the key concepts, thresholds, and exemptions in your jurisdiction is the essential first step in effective estate planning.

United Kingdom — Inheritance Tax (IHT)

UK Inheritance Tax is levied on the estate of a deceased person at a flat rate of 40% on the value above the Nil-Rate Band (NRB). The standard NRB is £325,000 per person, a threshold that has been frozen since 2009 and is scheduled to remain frozen until 2028 — meaning fiscal drag is progressively bringing more estates into the IHT net as property values rise.

A significant additional relief is the Residence Nil-Rate Band (RNRB) of £175,000, which applies when the main residence is left to direct descendants (children or grandchildren). The RNRB is tapered for estates over £2 million, reducing by £1 for every £2 above the threshold, and is completely eliminated for estates above £2.35 million.

Spouses and civil partners benefit from the unlimited spousal exemption — assets passed directly between spouses are completely exempt from IHT regardless of value — and from transferability of any unused NRB to the surviving spouse's estate. A married couple can therefore potentially shelter up to £1 million from IHT (two NRBs plus two RNRBs).

The 7-year rule governs lifetime gifts. Gifts made to individuals more than 7 years before death are generally exempt from IHT (Potentially Exempt Transfers). Gifts within 3 years of death are included in the estate at full value. Gifts between 3 and 7 years before death benefit from taper relief, reducing the IHT charge on a sliding scale.

United States — Federal Estate Tax

The US federal estate tax has one of the highest exemptions in the world: $13.61 million per individual in 2026 ($27.22 million for a married couple using portability). The tax only applies to the portion of an estate above this exemption, at a top rate of 40%. In practice, fewer than 0.1% of estates pay any federal estate tax — the tax is primarily relevant to high-net-worth individuals and families.

A critical planning consideration is the potential sunset of the elevated exemption. The Tax Cuts and Jobs Act of 2017 doubled the exemption — prior to TCJA, the exemption was approximately $5 million (inflation-adjusted). Unless Congress acts, the exemption is scheduled to revert to approximately $7 million (inflation-adjusted) after 31 December 2025. Individuals with estates between $7 million and $13 million may need to take action before the sunset.

Understanding how estate duty works in South Africa is critical for Muslim families in particular, as the interaction between South African estate duty and Islamic Faraid inheritance law requires careful planning. Visit Faraid Hub for dedicated Islamic estate planning tools and guidance on structuring estates in compliance with both South African law and Faraid principles.

South Africa — Estate Duty

South Africa levies Estate Duty at 20% on estates up to R30 million, and 25% on the dutiable amount above R30 million. The primary abatement is R3.5 million per deceased person. Bequests to a surviving spouse are fully exempt — and the surviving spouse inherits any unused abatement from the first deceased spouse's estate, effectively doubling the abatement to R7 million for the surviving spouse's estate.

Estate Planning Strategies

Common strategies to reduce inheritance tax exposure include: making use of annual gift allowances (£3,000 per year in the UK; the US annual exclusion is $18,000 per recipient in 2024); investing in qualifying business or agricultural assets that attract Business/Agricultural Property Relief in the UK; using life insurance held in trust to provide liquidity for IHT payments without increasing the taxable estate; and in the US, establishing irrevocable trusts to remove assets from the taxable estate. Professional advice from a qualified estate planning attorney or tax advisor is strongly recommended for estates approaching or above the relevant thresholds.

Frequently Asked Questions

No. Transfers between spouses and civil partners are fully exempt from UK IHT. Furthermore, any unused nil-rate band can be transferred to the surviving spouse's estate, potentially doubling the threshold to £650,000 (or £1,000,000 with RNRB).
South Africa does not have an "inheritance tax" as such — it has Estate Duty, which is levied on the deceased estate (not the beneficiary). Beneficiaries generally receive inheritances free of tax, though income earned after transfer is taxable.
Gifts made during your lifetime are generally Potentially Exempt Transfers (PETs). If you survive 7 years after making the gift, it falls outside your estate for IHT purposes. Gifts within 7 years of death are included in the estate, though taper relief reduces the IHT on gifts made 3–7 years before death.
No. The US does not have a federal inheritance tax. There is a federal estate tax, but it only applies to estates over $13.61 million per person (2026). Only 6 states have an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Rates and exemptions vary by state and relationship to the deceased.
The federal estate tax exemption is $13.61 million per individual ($27.22 million for a married couple with portability election) in 2026. Estates below this threshold owe no federal estate tax. The Tax Cuts and Jobs Act doubled the exemption — it is currently scheduled to revert to approximately $7 million (inflation-adjusted) after 2025 unless Congress acts.
No. Assets passed directly to a US citizen surviving spouse are exempt from federal estate tax under the unlimited marital deduction — regardless of amount. The surviving spouse also inherits any unused exemption (portability), effectively doubling the couple's combined exemption. Non-citizen spouses do not receive the unlimited marital deduction.
⚠️ Disclaimer Estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional.

Sources & Methodology

Tax rates and thresholds are based on current legislation in each jurisdiction.