Inheritance & Estate Tax Calculator
Estimate the tax due on an estate in the United States (federal estate tax) or the United Kingdom (inheritance tax). In Islam this tax is a debt of the estate — it is paid before the remainder is divided among the heirs.
The federal exemption is very high (in the millions), so the vast majority of US estates owe no federal estate tax. Some states add their own estate or inheritance tax.
Estimated tax
How tax fits into Islamic inheritance
In the Sharīʿah, four claims are settled from an estate before the heirs receive anything: funeral costs, then debts, then a bequest of up to one-third, then the fixed shares. A government estate or inheritance tax is treated as a debt of the estate — it is paid out of the estate before the remainder is divided by farāʾiḍ. So tax reduces the pot that the heirs ultimately split; it does not change the proportions between them.
United States — federal estate tax
The US taxes the estate (not the heir who receives it). Because the federal exemption is in the millions of dollars per person, over 99% of estates owe no federal estate tax. Transfers to a US-citizen spouse are unlimited and tax-free, and heirs generally pay no income tax on what they inherit (and often get a "step-up" in cost basis). A handful of states levy their own estate or inheritance tax with much lower thresholds, so check your state.
United Kingdom — inheritance tax (IHT)
The UK charges IHT at 40% on the value of an estate above the £325,000 nil-rate band. An extra residence nil-rate band (up to £175,000) applies when a main home passes to children or grandchildren. Transfers between spouses/civil partners are exempt, unused bands can transfer to a surviving spouse, and leaving 10% or more to charity cuts the rate to 36%. Gifts made more than seven years before death usually fall outside the estate.
Reduce it the halal way
Charitable giving (ṣadaqah, waqf) both pleases Allah and reduces a taxable estate. See how to legally reduce inheritance tax as a Muslim.
Now divide what remains
After tax and debts, calculate exactly how the remaining estate is shared among the heirs.