Germany inheritance tax calculator

German inheritance tax (Erbschaftsteuer) is charged on each heir, with an allowance and a rate that both depend on how closely related they are. This is how the allowances, the three tax classes and the progressive scale combine in 2026.

Reflects 2026 German rules · per-heir allowances and tax classes · an estimate, not advice.

Charged on the heir, by tax class

Germany taxes each beneficiary separately. Every heir subtracts a personal allowance (Freibetrag) that depends on the relationship, then the remaining acquisition is taxed on the scale for their tax class (Steuerklasse I, II or III).

The 2026 allowances (tax class I — close family)

• Spouse / civil partner: €500,000.
• Child (and child of a deceased child): €400,000.
• Grandchild: €200,000.
• Parent / grandparent (on inheritance): €100,000.
• Siblings, nieces/nephews, everyone else: €20,000.

The rate depends on class and amount

• Class I (spouse, children, grandchildren, parents): 7% to 30% on a progressive scale.
• Class II (siblings, nieces/nephews, in-laws): 15% to 43%.
• Class III (everyone else): 30% to 50%.
• The rate applies to the whole taxable acquisition (§19), not band-by-band — so crossing a threshold lifts the rate on the entire amount.

Gifts and business relief

• Lifetime gifts use the same allowances, which refresh every 10 years — a staged gifting program can pass wealth allowance by allowance.
• Business assets (Betriebsvermögen §13a/§13b) can qualify for major relief under strict holding and payroll conditions — HeirCalc flags it rather than assuming it applies, so a business figure is a ceiling to confirm.

The traps that catch German estates

• The whole-acquisition rate. Because the rate applies to the entire sum, a small increase near a band edge can cost more than it adds — a smoothing rule (§19(3)) softens this, but plan around the thresholds.
• Distant heirs pay heavily. A €20,000 allowance and Class II/III rates mean siblings and unrelated heirs can lose 30–50%.
• The 10-year clock. Gifts within 10 years of death are added back for the allowance — timing matters.

See your own numbers

HeirCalc applies each heir's allowance, the correct tax class and the progressive scale to your exact inheritance — and shows the statutory reason behind every figure. It runs entirely in your browser; nothing is saved or sent anywhere.

This guide is general information for 2026, not legal, tax, or financial advice. The outcome turns on precise facts — residence, the exact assets, the reliefs and elections available, and how title is held — that can change the result. Confirm your situation with a qualified professional. HeirCalc is an estimator by Krometis Analytics.