inheritance tax ireland calculator

How inheritance tax works in Ireland

Inheritance tax in Ireland is usually charged under Capital Acquisitions Tax (CAT). CAT applies when a person receives gifts or inheritances above certain tax-free thresholds. The tax is charged on the amount above the available threshold at the CAT rate.

This calculator focuses on a practical estimate for inheritances and follows the typical CAT flow:

• Start with the gross value inherited.
• Deduct eligible liabilities and expenses.
• Apply qualifying reliefs (if relevant).
• Subtract any available threshold for your relationship group.
• Apply the CAT rate to the balance.

CAT threshold groups (planning defaults)

In Irish CAT, thresholds are grouped by relationship. Thresholds can change with Finance Acts, so always verify current Revenue figures for a real filing.

• Group A: Typically children inheriting from a parent (and certain other cases).
• Group B: Typically close family members such as siblings, nieces, nephews, grandchildren.
• Group C: All other beneficiaries.
• Spouse/Civil Partner: Usually exempt from CAT on inheritances from each other.

Why prior benefits matter

Your threshold is cumulative for taxable gifts/inheritances from the same group. If you already used part of your threshold in prior years, your available threshold today may be lower. That is why this calculator includes a field for prior taxable benefits.

Worked example

Suppose a beneficiary in Group A receives an inheritance valued at €550,000, has €10,000 deductible costs, no reliefs, and has already used €50,000 of Group A threshold previously.

• Net after deductions: €540,000
• Available threshold: €400,000 - €50,000 = €350,000
• Taxable amount above threshold: €190,000
• CAT at 33%: €62,700

This is exactly the kind of scenario the calculator is designed for.

Common reliefs and deductions

1) Debts and estate expenses

Some debts and expenses can reduce the taxable value. Only include amounts that are legally deductible and properly documented.

2) Business Relief

Qualifying business assets may receive substantial relief. Rules are technical and condition-based, so professional advice is important before relying on the estimate.

3) Agricultural Relief

Qualifying agricultural property may benefit from relief if specific conditions are met (ownership/use tests, farmer test rules, and ongoing compliance).

4) Spouse/Civil Partner exemption

Transfers between spouses/civil partners are generally exempt from CAT. The calculator returns zero CAT when this relationship is selected.

Practical planning checklist

• Keep a record of all prior gifts/inheritances and their tax treatment.
• Check relationship group carefully before filing.
• Confirm up-to-date CAT thresholds and rates from Revenue.
• Validate eligibility for reliefs before claiming them.
• Document valuations and deductible liabilities.
• Get professional tax/legal advice for high-value estates.

Important limitations

This calculator provides an educational estimate only. It does not replace legal or tax advice and does not capture every edge case, anti-avoidance rule, valuation issue, or filing requirement. For real decisions and tax returns, use official Revenue guidance and a qualified advisor.