How to Calculate Inheritance Tax (CAT) in Ireland: A Guide for Estate Planning

1. List everything you expect to pass on

Start with a full inventory. Include the family home, other property and land, cash and savings, investments, shares or interests in a business, and valuables such as jewellery, watches, art and vehicles. For assets you own jointly, check what share or interest will actually pass and to whom. Use realistic market values and get professional valuations for assets such as property or a private business where needed.

For planning, use today’s values as a starting point. For an actual return, Revenue uses market value on the relevant valuation date. Deduct allowable debts and expenses where they apply, such as a mortgage owed by the estate or qualifying administration expenses, and count each deduction once. See Revenue’s guidance on taxable value and deductions.

2. Work out what each beneficiary will receive

Use your wills and ownership arrangements to estimate what each person receives. A couple should consider what passes on the first death and what could pass later. Inheritances between spouses or civil partners are exempt from CAT. Inheritances that eventually pass to children or other beneficiaries are assessed separately. Check whether any assets qualify for relief, such as Agricultural Relief, Business Relief or the Dwelling House Exemption. See Revenue’s spouse and civil partner exemption.

3. Check how much of each person’s threshold is left

For inheritances taken on or after 7 October 2026, the Revenue group thresholds are:

• Group A · €420,000 for a child inheriting from a parent, among other qualifying cases.
• Group B · €44,000 for relationships such as a sibling, niece or nephew, subject to the applicable rules.
• Group C · €22,000 for other relationships, such as an unrelated friend.

Ask each beneficiary about taxable gifts and inheritances they’ve already received in the same group since 5 December 1991. A child shares one Group A threshold across qualifying inheritances or gifts from either parent. For example, a child who has already received €100,000 in taxable Group A gifts has €320,000 of the current threshold left. See Revenue’s rules on previous gifts and inheritances.

4. Apply 33% to the taxable balance

For each beneficiary, start with their share after allowable deductions and applicable reliefs or exemptions. Subtract their remaining threshold, then multiply any positive balance by 33%. There’s no upper cap on the CAT payable under this calculation. Add up the individual bills to see how much cash your beneficiaries may need. Check Revenue’s CAT rates.

Example 1. Two children share a €2.5 million estate

Suppose a married couple leave a net estate of €2.5 million to their two children in equal shares. Each child inherits €1,250,000, has their full €420,000 Group A threshold available and qualifies for no other reliefs.

• Each child’s taxable balance is €830,000 (€1,250,000 less €420,000).
• Each child’s estimated CAT is €273,900 (€830,000 × 33%).
• The combined estimated bill is €547,800 (33% × (€2,500,000 − €840,000)).

Example 2. A child, a niece and a friend share €600,000

In this example, the net shares are €450,000, €100,000 and €50,000 respectively. The child has already received €100,000 in taxable Group A gifts. The niece and friend have their full thresholds available. Assume no other reliefs apply.

• Child · €450,000 less €320,000 remaining = €130,000 taxable. Estimated CAT €42,900.
• Niece · €100,000 less €44,000 = €56,000 taxable. Estimated CAT €18,480.
• Friend · €50,000 less €22,000 = €28,000 taxable. Estimated CAT €9,240.

The combined estimated bill is €70,620.

Check your estimate and plan for the bill

Use the inheritance tax calculator to enter the net estate, each person’s share and any previous taxable gifts or inheritances. If your estate includes a business, a farm or a home that might qualify for an exemption, check the treatment with your solicitor or tax adviser before relying on the estimate.

If your beneficiaries could face a bill and you’d like to put money in place to pay it, request a Section 72 quote. A rough estimate is enough to start the conversation.