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Estate Tax Calculator
Estimate US federal estate tax or UK inheritance tax on your estate.
US & UK
Both jurisdictions supported
Exemptions Applied
Federal exemption and nil-rate bands
Spousal Portability
Double exemptions for married couples
Calculate Estate Tax
Estimate estate tax for US (federal) or UK (IHT).
How Estate Tax Works
US Federal Estate Tax
The US federal estate tax applies to estates exceeding the exemption amount ($13.61M in 2025). The tax uses graduated rates from 18% to 40%, though the top rate applies to most taxable estates. Married couples can use portability to transfer unused exemption to the surviving spouse, effectively doubling the exemption.
UK Inheritance Tax
UK IHT applies at a flat 40% on estates above the nil-rate band (£325,000). The residence nil-rate band adds up to £175,000 for homes left to descendants. Between spouses, transfers are exempt and unused allowances pass to the survivor. Gifts made 7+ years before death are exempt.
Estate Tax vs Inheritance Tax
Estate Tax (US)
Paid by the estate before distribution. One calculation for the entire estate. Federal tax plus potential state-level estate tax. Very high exemption ($13.61M) means only about 0.1% of estates pay federal estate tax. Step-up in basis eliminates capital gains on inherited assets.
Inheritance Tax (UK)
Also paid by the estate but with a much lower threshold (£325,000). About 4% of UK estates pay IHT. No step-up in basis — beneficiaries inherit the original cost basis for CGT purposes. Various reliefs (BPR, APR, charitable rate) can reduce the bill significantly.
How to Use This Estate Tax Calculator
Select Jurisdiction
Choose US Federal or UK IHT.
Enter Estate Details
Total value, filing status, and lifetime gifts.
View Results
Estimated tax, effective rate, and exemption usage.
Estate Planning Strategies
- Annual gift exclusion. Gift up to $18,000 per recipient per year (US) or use the £3,000 annual exemption (UK) without reducing your estate tax exemption.
- Irrevocable trusts. Assets transferred to irrevocable trusts are removed from your taxable estate. Common types include GRATs, QPRTs, and ILITs for life insurance.
- Charitable giving. Charitable bequests reduce the taxable estate. In the UK, leaving 10%+ to charity reduces the IHT rate from 40% to 36%.
- Spousal portability. In both the US and UK, unused exemption can transfer to the surviving spouse, effectively doubling the available exemption for the second death.
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