Inheritance Tax Calculator

How Inheritance Tax Calculation Works

When receiving an inheritance in Italy, it is necessary to pay inheritance tax. The amount depends on the degree of kinship with the deceased, the value of the inherited assets, and the exemptions provided by law. Our calculator helps you quickly estimate how much you will need to pay to the tax authorities in the event of an inheritance.

Tax Rates by Degree of Kinship

Italian law provides differentiated rates based on the family relationship between the deceased and the heir:

• Spouse and direct-line relatives (children, parents, direct grandchildren): 4% rate on the value exceeding the exemption threshold of €1,000,000 per beneficiary.
• Siblings: 6% rate on the value exceeding the exemption threshold of €100,000 per beneficiary.
• Other relatives up to the 4th degree, direct-line in-laws, and collateral-line in-laws up to the 3rd degree: 6% rate with no exemption.
• All other parties: 8% rate with no exemption.

For beneficiaries with severe disabilities (under Law 104/1992), the exemption threshold is raised to €1,500,000, regardless of the degree of kinship.

Exemption Thresholds: When You Do Not Pay

Exemption thresholds represent the amount below which no inheritance tax is due. They apply individually to each heir. For example, if a parent leaves €800,000 to each of their two children, neither will pay inheritance tax because both remain below the €1,000,000 exemption.

It is important to know that the exemption applies to the total value of what each heir receives, adding together real estate, movable property, bank accounts, securities, and any other inherited assets.

Taxes on Inherited Real Estate

If the inheritance includes real estate, additional taxes must be paid beyond the inheritance tax:

• Mortgage tax (imposta ipotecaria): 2% of the cadastral value of the property.
• Land registry tax (imposta catastale): 1% of the cadastral value of the property.

The cadastral value is calculated by multiplying the cadastral income, revalued by 5%, by the coefficient for the property category (typically 120 for residential properties).

Primary Residence Tax Relief

If at least one of the heirs intends to use the inherited property as their primary residence, they can benefit from the primary residence relief. In this case:

• The mortgage tax is reduced to a fixed €200.
• The land registry tax is reduced to a fixed €200.

To access this relief, the heir must declare in the inheritance declaration their intention to establish residence in the municipality where the property is located within 18 months, and must not own other properties purchased with the primary residence relief.

How to Calculate the Value of the Inheritance

The value of the inheritance for inheritance tax purposes includes:

• Real estate: the cadastral value is used (not market value), calculated as revalued cadastral income × coefficient.
• Bank accounts and deposits: balance as of the date of death.
• Securities and investments: value as of the date of death.
• Movable property: if not itemized, a value equal to 10% of the net inherited estate is presumed.
• Businesses and shareholdings: value of the company's net assets.

From the gross value, the deceased's documented debts and medical expenses incurred by the heirs in the last six months of life can be deducted.

How to Use the Calculator

Select the degree of kinship with the deceased, enter the total value of the inherited assets, and, if applicable, the value of any real estate. Indicate whether you intend to use the primary residence relief. The calculator will show the inheritance tax due, the mortgage and land registry taxes, and the overall total of taxes to be paid on the inheritance received.