Inheritance and Donation Tax Calculator 2026
Calculate Italian succession and inheritance tax with updated rates and exemptions (D.Lgs. 139/2024 - abolition of cohabitation). Enter the value of the estate and degree of kinship.
Configure
Result
No results
Enter values and press the button to calculate.
Frequently Asked Questions
What are the succession tax rates in Italy for 2026?
Current tax rates (D.Lgs. 346/1990 art.7, confirmed by D.Lgs. 123/2025) are: 4% for spouse and direct lineal descendants (exemption €1 million), 6% for siblings and half-siblings (exemption €100,000), 6% for other relatives up to the 4th degree (no exemption), 8% for all other individuals (no exemption). These rates apply to taxable income, i.e., the portion of net worth exceeding the exemption.
What is the inheritance tax and how does it work?
The exemption threshold is the level below which transfers are not taxed. For spouses and children, it's €1 million per beneficiary; for siblings/siblings, it's €100,000. If the asset value is below the threshold, no tax is due. Only the excess is subject to the rate. Since 2026, exemptions are calculated separately for inheritances and donations (coacervo abolished by D.Lgs. 139/2024).
Does previous year's donation still apply in 2026?
No. The D.Lgs. 139/2024, effective January 1, 2025 (confirmed by D.Lgs. 123/2025 of TU reorganization), has abolished the successor inheritance. Previously made donations to the same beneficiary are no longer added to the succession reserve for calculating the remaining franchise. This simplifies succession and patrimonial planning significantly.
Donation calculator settings: does it also work for living donations?
Yes, tax rates and allowances are the same for inheritances and donations (D.Lgs. 346/1990 art.7). Donating a €1.2 million property to a child results in an €8,000 tax (4% on €200,000 exceeding the €1 million allowance). However, notarized acts are required for donations, adding mortgage, property, and other costs.
What is the difference between inheritance tax and mortgage/property tax?
Inheritance tax (calculated by this tool) affects the transfer of assets due to inheritance based on rate and exemption. For only real estate, additional taxes are added including the mortgage stamp duty (2% on cadastral value) and cadastral tax (1%), independent from succession tax. This calculator considers only main succession tax.
How is succession tax calculated for a €1.5m asset between parent and child?
For the inheritance line (father-son) tax exemption is €1,000,000 and the rate is 4%. Taxable = €1,500,000 - €1,000,000 = €500,000. Tax = €500,000 × 4% = €20,000. If the asset was under €1,000,000, the tax would be zero due to the exemption.
How is it used?
- Insert value of axis
Indicate the net value of transferred assets to a single beneficiary (real estate, liquidity, securities), net of deductible debts.
- Choose relationship with the deceased.
Select your relationship degree: spouse/straight line (4% with 1M€ exemption), siblings/sisters (6% with 100k€ exemption), other relatives (6% without exemption), or others (8% without exemption).
- Calculate tax
Calculate tax to get the amount due, taxable base (net of exemption), and total including tax.
- Consult a professional
This tool is informative. For succession declaration, final calculation and tax optimization, consult a notary or accountant.
What is succession and inheritance tax in Italy?
Inheritance and donation tax affects transfers of wealth at no cost, whether due to death (successions) or among the living (donations). Regulated by DLgs. 346/1990 (Unified Tax on Inheritance and Donation), it was reorganized with DLgs. 123/2025, which came into effect January 1, 2026, rationalizing its structure without changing rates.
The system provides four levels of kinship, each with its own rate and exemption threshold. The exemption threshold is the zero-rate: only the excess amount is subject to the rate. For spouses and direct line relatives, the exemption threshold is €1 million per beneficiary at a rate of 4%. For siblings and their children, it's €100,000 at a rate of 6%. For other relatives up to the fourth degree, there is no exemption or rate of 6%. For all other individuals, there is no exemption or rate of 8%.
A significant change introduced by D.Lgs. 139/2024 is the abolition of successionary co-ownership: prior donations to the same beneficiary no longer add up to the inheritance reserve for residual exemption. This allows more efficient inter vivos estate planning without cumulative fiscal penalties on subsequent inheritances.
The franchise applies to individual beneficiaries, not the entire inherited asset. An inheritance of €3 million split between three children (€1 million each) does not generate any tax, as no child exceeds their individual franchise amount.
This calculator implements updated rules for 2026 and calculates the main tax. Does not include mortgage and property stamp taxes (2% and 1%), notary fees, or special relief. For final succession declaration, contact a notary or accountant.
Practical example
- Inheritance scenario: Net inheritance of €1,500,000, beneficiary = only child (straight line).
- Flat rate quota:
4%- Allowances:€1.000.000per beneficiary. - Taxable amount:
€1,500,000 − €1,000,000 = €500,000. - Setting:
€500,000 × 4% = €20,000. The tax above the franchise is taxed at 4%.
Vocabulary Dictionary
- Inherited Asset
- Transfer of assets, rights and obligations to beneficiaries after deducting deductible liabilities (deceased's debts, funeral expenses, mortgage charges). Basis for applying the exemption and rate.
- Franchise
- Exempt tax amount per each beneficiary. €1,000,000 for spouse and direct line; €100,000 for siblings and sisters; zero for other relatives and others. From 2025, separately calculated for inheritance and donation (legacy abolished).
- Straight line
- Line of descent that directly connects ancestors and descendants: children, grandchildren, parents, grandparents. The spouse is not a direct lineal relative but enjoys the same franchise and rate by law.
- Outgrown (obsolete)
- Mechanism abolished by D.Lgs. 139/2024 that aggregated previous donations to the succession asset for reducing the remaining exemption. From 2025, exemptions for inheritances and donations are calculated independently.
- Valueable
- Taxable part of the income (value exceeding the exemption threshold). If the income is below the threshold, the taxable amount is zero and no tax is payable.
- Succession Statement
- Formal act presented to the Agency of Revenue within 12 months from the succession opening, listing the inherited assets and liabilities, and liquidating the tax.
- Of which
- The deceased person from whom succession originates. From Latin "heir of whose estate is being dealt with" (that person of whose inheritance it is a matter).
- Legislative Decree No. 123 of 2025
- Tax Decree on the Unified Tax Code for Indirect Transfers, effective from January 1, 2026. Does not alter rates or exemptions but rationalizes the legislative structure of DLgs. 346/1990.
Do you need a custom analysis?
This tool is free and informative. For in-depth analysis with AI on-prem - private data, zero cloud - contact Federico.