Guide · Inheritance Tax Calculator
Irish Inheritance Tax — how CAT works in 2026
Capital Acquisitions Tax (CAT) is the Irish tax on gifts and inheritances. If you receive money, property or other assets above a certain threshold — determined by your relationship to the person who gave them — Revenue charges CAT at a flat rate of 33% on the excess. Understanding how CAT works is essential for anyone inheriting property, planning an estate, or receiving a significant gift.
The TakeHomePay.ie inheritance tax calculator estimates your CAT liability in seconds. This guide explains every field in the calculator and the rules behind it, so you understand not just the number — but how it is calculated and how to reduce it legally.
The calculator provides an estimate only. CAT is a complex area of Irish tax law — thresholds are lifetime cumulative, reliefs have strict conditions, and the rules around gifts, inheritances and prior benefits all interact. Always consult a solicitor or tax adviser for your specific situation before making financial or estate planning decisions.
Select: Gift or Inheritance
The first choice in the calculator is whether you are calculating tax on a gift (received during the donor's lifetime) or an inheritance (received after someone has died). The distinction matters because some reliefs — particularly the small gift exemption and dwelling house relief — apply differently to each.
A benefit received while the person giving it (the "disponer") is still alive. Subject to the same group thresholds and 33% CAT rate as an inheritance. Gifts and inheritances from the same group are aggregated together for lifetime threshold purposes. The annual small gift exemption (€3,000) is available for gifts only — not inheritances.
A benefit received after the disponer has died, typically through a will or intestacy rules. The same group thresholds and 33% rate apply. Dwelling house relief is available for qualifying inheritances. The calculator's default mode.
Gifts and inheritances are aggregated. If you received a gift of €200,000 from a parent three years ago and now inherit €300,000 from the same parent, your lifetime total is €500,000. With a Group A threshold of €400,000, €100,000 is taxable at 33% — even though neither individual transfer exceeded the threshold on its own.
Select your relationship to the disponer
Your relationship to the person who gave the gift or left the inheritance determines which group threshold applies to you. This is the single most important factor in your CAT calculation — the difference between Group A (€400,000) and Group C (€20,000) is enormous.
Unmarried partners — Group C only. One of the most costly CAT traps in Ireland. A partner of 30 years who inherits a €500,000 home pays 33% on €480,000 = €158,400 in CAT, because only €20,000 is exempt. Only legal marriage or civil partnership grants the full spousal exemption. If this applies to you, speak to a solicitor urgently about estate planning options.
Enter the value and any prior benefits
Enter the total value of what you are receiving — cash, property, investments, or any combination. For property, use the market value on the valuation date (the date you become entitled to the benefit). Revenue can dispute undervaluations, particularly for property. Enter the figure without the euro sign — the calculator accepts comma-formatted numbers (e.g. 450,000).
CAT thresholds are lifetime cumulative — not per-transaction. All gifts and inheritances received from anyone in the same group since 5 December 1991 count toward your threshold. Enter the total taxable value of all prior benefits from the same group to see your remaining threshold. Leave blank or at zero if you have not previously received benefits in this group.
The 5 December 1991 date is not a typo. Revenue aggregates all CAT benefits going back to this specific date. A gift received 30 years ago from a parent still uses up part of the Group A threshold. If you are unsure of prior benefits, Revenue's myAccount service shows your CAT history.
Apply reliefs (if applicable)
The calculator offers three relief options. Each reduces the taxable value before the threshold and 33% rate are applied — in that order. Reliefs can dramatically reduce or eliminate a CAT liability, but all have strict conditions.
Dwelling house relief (inheritances only)
If you inherit a residential property that you lived in as your principal private residence for at least 3 years immediately before the inheritance, and you do not own any other residential property on the date of the inheritance, and you continue to live there for at least 6 years after, the entire value of the property may be exempt from CAT. Toggle this on and enter the value of the home to see the impact. Strict conditions — take professional advice before assuming eligibility.
Dwelling house relief is one of the most valuable reliefs in Irish tax law. On a €500,000 home, it saves €165,000 in CAT (33% of €500,000) if all conditions are met. The 6-year post-inheritance occupancy condition is the most commonly breached — selling or renting the property within 6 years can trigger a claw-back of the relief.
Agricultural and Business Relief (90% reduction)
Qualifying agricultural property (land, farm buildings, livestock, agricultural machinery) and qualifying business property (unquoted shares, business assets) attract a 90% reduction in taxable value. Enter the value of qualifying assets — the calculator deducts 90% of that amount from the taxable inheritance before applying the threshold. Conditions are strict — Agricultural Relief generally requires the beneficiary to satisfy Revenue's "farmer test" or another qualifying condition under Revenue rules. Take professional advice before assuming eligibility — the full conditions are set out in Revenue's guidance.
Small Gift Exemption (gifts only — €3,000 per year)
Each person can receive up to €3,000 per year from any individual completely free of CAT — entirely separate from and in addition to the group lifetime threshold. This only applies to gifts, not ordinary inheritances. Toggle it on in Gift mode to deduct €3,000 from the taxable value. Over many years, systematic use of the small gift exemption can transfer significant wealth without using any of the group threshold.
The power of the small gift exemption over time: A parent giving €3,000 to each of three children every year for 20 years transfers €180,000 completely tax-free — without touching the Group A threshold at all. Both parents can each give €3,000, so a couple can transfer €360,000 to three children over 20 years with zero CAT exposure.
Read your results
The results panel shows a complete step-by-step breakdown of how your CAT is calculated. Here is what each line means:
The headline estimated liability — coloured green if zero, amber for moderate amounts, red for large liabilities. Zero CAT doesn't mean no obligation — you may still need to file a Form IT38.
The inheritance/gift value after all applicable reliefs have been deducted (small gift exemption, dwelling house relief, 90% agricultural/business reduction). This is the figure against which your remaining threshold is applied.
Your group lifetime threshold (€400,000 / €40,000 / €20,000) minus any prior benefits already received in the same group. This is how much of the current inheritance is tax-free.
Shows what percentage of your lifetime threshold is used up (combining prior benefits and the current inheritance/gift). Green means well within threshold; amber means above 80% (IT38 filing may be required even if no tax is due); red means threshold exceeded and CAT is payable.
Appears when your cumulative benefits exceed 80% of the group threshold, or when agricultural/business relief is claimed. This is Revenue's filing trigger — a Form IT38 must be submitted even if no CAT is actually payable.
Worked examples
Example 1 — Child inheriting family home and savings
Group A · Home €480,000 + savings €80,000 · No prior benefits · No dwelling relief
Now apply dwelling house relief — assuming the child lived in the home for 3+ years before and qualifies:
Same scenario + dwelling house relief on €480,000 home
Dwelling house relief converts a €52,800 tax bill into zero — but only if the strict 3-year residency and no-other-property conditions are met.
Example 2 — Sibling inheriting with prior benefit
Group B · Inheritance €60,000 · Prior benefit from same sibling €25,000
Note: The prior benefit of €25,000 used €25,000 of the €40,000 Group B threshold, leaving only €15,000 available for this inheritance — even though each individual benefit was below €40,000.
Example 3 — Unmarried partner inheriting
Group C · Inheritance €350,000 · Unmarried partner
The same €350,000 left to a child (Group A) would be completely tax-free. The unmarried partner faces a €108,900 tax bill. This is why estate planning for unmarried couples is so important.
IT38 filing — when and how
Filing a CAT return is not optional once the threshold is crossed — and it is required even before tax becomes payable. Many people are caught out by this rule.
Interest and penalties: Late filing carries surcharges of 5% (up to 2 months late) or 10% (more than 2 months late) of the CAT payable. Interest can arise on unpaid CAT based on valuation-date rules — the timing of the valuation date is important in determining both the filing deadline and when interest may begin to accrue. Revenue may review CAT returns, particularly where property valuations or relief claims are involved.
How much can I inherit tax-free in Ireland?
The most searched inheritance tax question in Ireland. The answer depends entirely on your relationship to the disponer and the value of all prior benefits received from the same group since 1991.
| Relationship | Group | Lifetime tax-free limit | CAT on €500,000 inheritance (no prior benefits) |
|---|---|---|---|
| Spouse / civil partner | Exempt | Unlimited | €0 |
| Child | A | €400,000 | €33,000 |
| Sibling / niece / nephew | B | €40,000 | €151,800 |
| Grandchild | B | €40,000 | €151,800 |
| Unmarried partner | C | €20,000 | €158,400 |
| Friend / cousin | C | €20,000 | €158,400 |
Irish property prices make the Group A threshold increasingly relevant. With Dublin family homes regularly exceeding €500,000, even a single-property estate can trigger CAT for a child. Careful estate planning — using the small gift exemption over many years, considering Section 72 life insurance policies, or reviewing will structures — can significantly reduce or eliminate the bill.
How to reduce inheritance tax in Ireland legally
There is no shortage of strategies to reduce a CAT liability — Revenue provides specific reliefs and exemptions precisely for this purpose. None of the following constitutes aggressive avoidance; they are standard estate planning tools used by solicitors and financial advisers across Ireland.
Each person can give up to €3,000 per year to any individual free of CAT — entirely outside the group thresholds. A couple with three children can transfer €18,000 per year (€3,000 per parent × 3 children) without touching anyone's threshold. Over 20 years that is €360,000 transferred completely free of CAT. Starting early is critical — this relief is use-it-or-lose-it, with no ability to carry forward unused years.
If a family home is likely to form part of an estate, it may be worth planning ahead for the dwelling house exemption. The beneficiary must live in the property for 3 years before the inheritance and commit to remaining for 6 years after — so the planning window can be long. This requires structuring the beneficiary's living arrangements well in advance. A solicitor can advise on whether and how to structure this.
Qualifying farms and business assets can pass with only 10% of their value subject to CAT. For a farm worth €1 million, that means CAT is assessed on only €100,000 rather than €1 million — potentially saving hundreds of thousands in tax. The conditions are strict and must be carefully documented — early planning with a specialist solicitor is essential for farming and business-owning families.
How a will is drafted can significantly affect the CAT liability of beneficiaries. Splitting assets among multiple beneficiaries rather than concentrating them in one person allows each to use their own threshold. For example, rather than leaving everything to one child, leaving portions to children and grandchildren (who each have their own Group A threshold from their parent) can reduce or eliminate the overall CAT exposure of the estate.
A Revenue-approved Section 72 life assurance policy is specifically designed to fund a CAT liability. The policy is taken out by the disponer, and the proceeds are paid tax-free to the beneficiary to cover the inheritance tax bill — preserving the full value of the estate. This is particularly valuable where the estate consists largely of illiquid assets like property or a business that cannot easily be sold to pay a tax bill. Premiums are not tax-deductible, but the proceeds are exempt from CAT. Speak to a qualified financial adviser about suitability.
Start planning early. The most effective CAT reduction strategies — the small gift exemption, dwelling house planning, will structuring — require years of consistent action to deliver their full benefit. A solicitor specialising in estate planning can create a personalised strategy based on your specific family structure and asset mix.
Frequently asked questions
How much can a child inherit from a parent tax-free in Ireland in 2026?
A child can receive up to €400,000 from a parent completely free of CAT — but this is a lifetime cumulative limit, not a per-inheritance figure. It covers all gifts and inheritances from both parents combined since 5 December 1991. If a child received a gift of €100,000 from a parent in 2018, only €300,000 of the threshold remains for future inheritances.
Do unmarried partners pay inheritance tax in Ireland?
Yes — and significantly so. Unmarried partners are Group C beneficiaries regardless of how long the relationship has lasted. Only €20,000 can be received tax-free over a lifetime, and everything above that is taxed at 33%. A partner inheriting a family home worth €400,000 could face a CAT bill of approximately €125,400 (33% of €380,000). Only legal marriage or civil partnership grants the spousal exemption.
Is the family home subject to inheritance tax in Ireland?
It can be — unless dwelling house relief applies. If you lived in the property as your principal private residence for at least 3 years before the inheritance, own no other residential property, and commit to living there for at least 6 years after, the home is fully exempt from CAT. If these conditions are not met, the home's market value is included in the estate and counts toward the group threshold like any other asset.
Does the small gift exemption reduce my CAT threshold?
No — the €3,000 annual small gift exemption is entirely separate from and in addition to the group lifetime threshold. It does not use up any of your €400,000 / €40,000 / €20,000 threshold. This is what makes it such a valuable long-term planning tool — systematic annual gifts of €3,000 do not erode the threshold at all.
Do I have to pay inheritance tax on money from abroad?
It depends. Irish CAT applies if the disponer is Irish-resident or domiciled, or if the assets are located in Ireland — regardless of where the beneficiary lives. Non-residents inheriting Irish property may also face CAT. Ireland has double taxation agreements with some countries that may provide relief where inheritance tax is also paid abroad. Cross-border inheritance situations are complex — always take professional advice.
What is the valuation date for inheritance tax in Ireland?
The valuation date is the earliest date on which the inheritance can be claimed or enjoyed — typically the date the estate is distributed following probate, not the date of death. It matters because it determines the CAT filing and payment deadline, the date from which interest accrues on unpaid tax, and the date on which valuations (particularly for property and unquoted shares) must be determined.
Planning ahead? See how pension savings (generally outside the estate for CAT purposes) or property with a mortgage factor into your overall financial picture.
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