Inheritance Tax Calculator: Tax Owed by the Recipient
Work out the inheritance tax owed by the recipient on a bequest — the tax paid out of the inheritance itself, distinct from estate tax (which is paid by the estate before any distribution).
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Inheritance tax | Net inheritance |
|---|---|---|
| 15% of $500k | 75,000 | 425,000 |
| 0% of $1M (spouse) | 0 | 1,000,000 |
| 10% of $250k (child) | 25,000 | 225,000 |
| 30% of $100k (unrelated) | 30,000 | 70,000 |
How This Calculator Works
Enter the inherited amount above any exemption and the applicable rate. The calculator multiplies the two to give the inheritance tax and shows the net inheritance the recipient actually receives.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
A $500,000 inheritance taxed at 15% costs $75,000 in inheritance tax, leaving $425,000 for the recipient. Rates vary sharply by relationship — spouses are usually exempt entirely, direct descendants face lower rates (often 0% to 10%), and unrelated heirs pay the highest rates (sometimes 30%+).
Key Insight
Inheritance tax is distinct from estate tax in two ways: who pays (the recipient, not the estate) and how it varies (by relationship to the deceased). In the US, only six states had inheritance taxes as of 2024 (Iowa repealed in 2025, Kentucky, Maryland, Nebraska, New Jersey historically, Pennsylvania). Most countries with inheritance regimes (UK, Germany, Japan) charge it nationally with relationship-based rates.
Frequently Asked Questions
What is the difference between inheritance tax and estate tax?
Estate tax is paid by the estate before assets are distributed. Inheritance tax is paid by the recipient after receiving the bequest. The US federal level uses estate tax; some states and many countries use inheritance tax.
Which US states have inheritance tax?
As of 2024 — Iowa (repealed for 2025+), Kentucky, Maryland, Nebraska, and Pennsylvania. New Jersey eliminated its inheritance tax in 2018 for most recipients. Each has its own rates and exemption rules.
Are spouses exempt from inheritance tax?
Almost always yes. Most jurisdictions exempt surviving spouses from inheritance tax entirely. Some also exempt direct descendants or charitable bequests.
How do rates vary by relationship?
Closer relatives pay less. Common structure: spouses 0%, children 0% to 10%, siblings 5% to 15%, unrelated heirs 10% to 30%. Specific brackets vary by jurisdiction; check local rules.
Is the inheritance itself taxable income to the heir?
In the US, no — inheritances are not subject to federal income tax. Any subsequent income (interest, dividends, capital gains on inherited assets) is taxable. State inheritance tax is separate from income tax.
Related Calculators
Methodology & Review
Inheritance tax is the inherited amount multiplied by the applicable rate. The rate often depends on the recipient's relationship to the deceased — spouses are usually exempt, direct descendants face lower rates, and unrelated heirs pay the highest. The calculator models a single flat rate; exemption thresholds and bracketed rates need to be folded into the inputs.
Written by Ugo Candido · Last updated May 17, 2026.