Last Updated: April 2026
Inheritance tax (IHT) — also called estate tax or succession tax depending on the country — is levied on assets transferred at death. Rates range from 0% (Australia, Canada, Sweden) to 55% (Japan). For high-net-worth families with assets in multiple countries, understanding which countries' inheritance taxes apply — and how to plan around them — can mean preserving millions of dollars for heirs.
This guide covers inheritance tax rates in major economies, key exemptions (particularly for spouses and children), cross-border estate planning considerations, and the list of countries that have abolished inheritance tax entirely.
These countries have either abolished inheritance tax or never had one:
| Country | Status | Year Abolished (if applicable) |
|---|---|---|
| Australia | No inheritance tax | Abolished 1979 |
| Canada | No inheritance tax | Abolished 1972 (deemed disposal CGT applies at death) |
| New Zealand | No inheritance tax | Abolished 1992 |
| Sweden | No inheritance tax | Abolished 2004 |
| Norway | No inheritance tax | Abolished 2014 |
| Portugal | No inheritance tax (direct family) | Direct heirs exempt; 10% stamp duty on non-direct heirs |
| Singapore | No estate duty | Abolished 2008 |
| UAE | No inheritance tax | Never introduced |
| Hong Kong | No estate duty | Abolished 2006 |
| Israel | No inheritance tax | Abolished 1981 |
| China | No inheritance tax | Never introduced at national level |
| India | No inheritance tax | Abolished 1985 |
When a deceased person has assets or heirs in multiple countries, inheritance tax can become complex:
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Transfer Inheritance Proceeds Internationally →Inheritance tax has been abolished in many countries over the past 50 years due to several converging arguments: (1) Double taxation — assets have often already been taxed as income, capital gains, or corporate profits during the owner's lifetime; (2) Economic efficiency — IHT can force the sale of family businesses and farms that are asset-rich but cash-poor; (3) Political unpopularity — surveys consistently show inheritance tax is among the least popular taxes even with voters who will never pay it; (4) Avoidance — sophisticated estates can typically structure around IHT with trusts and gifting strategies, meaning IHT often falls disproportionately on middle-class families rather than the super-wealthy; (5) Capital flight — countries that retain IHT (France, UK, Japan) face pressure from wealthy individuals relocating to no-IHT jurisdictions. Sweden abolished IHT in 2004; Norway in 2014 — both finding the economic costs outweighed the revenue.
No — Australia abolished all state inheritance and death duties by 1981, and has no federal inheritance tax. However, inherited assets in Australia are subject to capital gains tax when eventually sold. The CGT calculation uses the cost base at the time of inheritance (not the original purchase price), so most inherited assets have a low CGT liability unless significantly appreciated after inheritance. Superannuation (pension) accounts have special tax treatment on death: death benefits paid to dependants (spouse, minor children) can be tax-free; benefits paid to non-dependants (adult children) are taxed at 15–30% depending on the components.
The UK nil-rate band (NRB) is £325,000 — the amount below which no UK inheritance tax is charged (40% applies above this). There is also a residence nil-rate band (RNRB) of £175,000 when the deceased's main residence is left to direct descendants (children, grandchildren). Combined, a single person can pass £500,000 tax-free. For married couples: when the first spouse dies leaving everything to the surviving spouse (exempt from IHT), the unused NRB is transferred to the survivor. This means a surviving spouse can have up to £1,000,000 combined (£325,000 + £175,000 × 2) before IHT applies. Both nil-rate bands are frozen until at least 2028, which means more estates are gradually being pulled into IHT as property values rise — fiscal drag is increasing the effective IHT burden without any rate change.
Common UK IHT reduction strategies: (1) Annual gifting — £3,000/year can be given away tax-free; potentially exempt transfers (PETs) become exempt if the donor survives 7 years; (2) Spouse/civil partner transfers — unlimited IHT-exempt transfers between UK-domiciled spouses; (3) Business Property Relief — qualifying business assets receive 100% relief (though Budget 2024 capped BPR at £1M from April 2026); (4) Agricultural Property Relief — 100% on qualifying agricultural land; (5) Charitable giving — gifts to charity are exempt; leaving 10%+ of estate to charity reduces estate IHT rate from 40% to 36%; (6) Trusts — discretionary trusts can hold assets outside the estate (complex rules apply); (7) Life insurance — whole-of-life insurance written in trust can provide funds to pay the IHT bill without adding to the estate. Always get professional advice — IHT planning is one of the most complex areas of UK tax.
Canada has no inheritance tax per se — there is no tax charged on the receipt of inherited assets. However, Canada has a 'deemed disposition' rule at death: the deceased person is treated as having sold all their assets at fair market value immediately before death, triggering capital gains tax at that point (at 50% inclusion for gains up to $250,000, or 66.67% above that). This CGT is the estate's tax liability, not the beneficiary's. Registered accounts (RRSP, RRIF) are included in the deceased's income in the year of death unless transferred to a qualifying spouse or dependent. In practice, for most Canadians, the deemed disposition CGT on death is far less burdensome than a UK-style IHT, particularly since the principal residence exemption eliminates CGT on the family home.