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Research Briefing

Inheritance Tax Compared: The OECD Data

How the United Kingdom sits against 35 other advanced economies on inheritance taxation: how many countries levy it, how little it raises, and how few estates actually pay.

Written by the Fairchild Oldfield team · Research briefing · Last reviewed: July 2026

24 of 36
OECD countries levied an inheritance or estate tax as at 2021. On average these taxes raised only around 0.5% of total tax revenue in the countries that impose them.
Source: OECD, Inheritance Taxation in OECD Countries, 2021.

Inheritance tax generates strong political argument and modest public revenue. Across the OECD, taxes on wealth transfers raise, on average, around half of one percent of total taxation, yet they sit at the centre of debates about fairness, wealth concentration and the taxation of unearned gains.

This briefing sets the United Kingdom's inheritance tax against the wider OECD using the OECD's own 2021 study, Inheritance Taxation in OECD Countries, alongside HM Revenue and Customs statistics, Office for Budget Responsibility forecasts and gov.uk. It reports how many countries tax bequests, how much the tax raises, the top statutory rates, and how few estates actually fall within charge. Every statistic below states its figure, its year, its geography and its source. Figures are current as at July 2026 and are subject to change. This is general information and factual data reporting, not advice.

Executive summary

  • 24 of the 36 OECD countries levied an inheritance or estate tax as at 2021 (OECD, 2021); the United Kingdom is one of only four that use a donor-based estate tax rather than a recipient-based inheritance tax.
  • Inheritance, estate and gift taxes raised on average around 0.5% of total tax revenue in 2019 in the OECD countries that levy them, and above 1% in only four: Belgium, France, Japan and Korea (OECD, 2019 data).
  • Japan has the highest top statutory rate on a bequest to a child at 55%, ahead of Korea (50%) and France (45%); the United Kingdom and the United States share a 40% top rate (Tax Foundation, drawing on OECD and national data).
  • Only around 4% of UK estates were subject to inheritance tax in 2019, against 0.2% in the United States and 48% in Belgium's Brussels-Capital Region (OECD, 2019 or latest year).
  • 4.72% of UK deaths resulted in an inheritance tax charge in 2023-24, the highest share since 2006-07 (HMRC, 2023-24).
  • The average effective rate paid by taxpaying UK estates was 13% in 2023-24, far below the 40% headline rate, because of exemptions and reliefs (HMRC, 2023-24).
  • The wealthiest 10% of households own about half of all household wealth on average across 27 OECD countries, and the wealthiest 1% own about 18% (OECD, 2015 or latest year).
  • UK inheritance tax receipts reached about £8.2 billion in 2024-25 and the OBR's latest forecast has them rising further while thresholds stay frozen to April 2031 (OBR, November 2025 forecast).

Key findings

  • 24 of 36 OECD countries levied an inheritance or estate tax as at 2021; 20 of them use recipient-based inheritance taxes, while Denmark, Korea, the United Kingdom and the United States levy donor-based estate taxes (OECD, Inheritance Taxation in OECD Countries, 2021).
  • Ten OECD countries repealed their inheritance or estate taxes between 1961 and 2014, including Australia (1979), Canada (1972), Sweden (2004), Norway (2014) and the Czech Republic (2014) (OECD, 2021).
  • Inheritance, estate and gift taxes raised about 0.5% of total taxation on average in 2019 across levying OECD countries, and about 0.36% averaged across all OECD countries (Tax Foundation citing OECD Revenue Statistics, 2019).
  • Korea raised the largest share of any OECD country from these taxes, at about 1.6% of total tax revenue in 2019 (Tax Foundation citing OECD, 2019).
  • Revenues from these taxes exceeded 1% of total taxation in only four OECD countries in 2019: Belgium, France, Japan and Korea (OECD, 2019 data).
  • Japan's 55% top statutory rate on a bequest to a child was the highest in the OECD, with Korea at 50% and France at 45% (Tax Foundation, OECD and national data). rate vintage: see methodology
  • About 4% of UK estates were subject to inheritance tax in 2019, compared with 0.2% in the United States, 9% in Japan, 10.1% in Germany and 48% in Belgium's Brussels-Capital Region (OECD, 2019 or latest year).
  • 30,400 UK estates incurred an inheritance tax charge in 2023-24, a fall of 1,100 (3.6%) on the previous year (HMRC, 2023-24).
  • UK inheritance tax liabilities created in 2023-24 totalled £7.03 billion, a 5% rise on 2022-23 (HMRC, 2023-24).
  • Agricultural property relief and business property relief together reduced UK inheritance tax liabilities by £5.96 billion in 2023-24 (£2.11 billion agricultural, £3.85 billion business) (HMRC, 2023-24).
  • Between 1995 and 2019, per-capita household wealth nearly tripled in France and more than doubled in Canada and the United Kingdom (OECD, 1995-2019).
  • The share of households reporting they had received an inheritance or a substantial gift ranged from 39% in Canada to 66% in Finland (OECD, 2015 or latest year).
  • Inheritances and gifts reported by the wealthiest 20% of households were close to 50 times larger than those reported by the poorest 20% (OECD, 2015 or latest year).
  • UK inheritance tax was forecast to raise about £8.7 billion in 2025-26, equal to roughly 0.3% of national income and 0.7% of total receipts (OBR, November 2025 forecast).

The design map

Which OECD countries tax inheritance, and how

A majority of OECD countries tax wealth passing at death, but they split into two designs. Most levy a recipient-based inheritance tax, charged on what each beneficiary receives. A minority, including the United Kingdom, levy a donor-based estate tax charged on the deceased person's total estate before it is divided. All countries that tax bequests also tax lifetime gifts, to limit avoidance.

Tax designCountries (as at 2021)
Recipient-based inheritance tax (plus gift tax)Belgium, Chile, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Lithuania, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Switzerland (Zurich), Turkey
Donor-based estate tax (plus gift tax)Denmark, Korea, United Kingdom, United States
No inheritance or estate tax (repeal year)Australia (1979), Austria (2008), Canada (1972), Czech Republic (2014), Israel (1980), Mexico (1961), New Zealand (1992), Norway (2014), Slovak Republic (2004), Sweden (2004); Estonia and Latvia never levied one

Source: OECD, Inheritance Taxation in OECD Countries, 2021, Table 1. The OECD counts 24 countries levying such taxes across the then 36 members.

What the split means in practice: an estate tax such as the UK's charges the estate as a whole and is administratively simpler to assess, but it does not vary with how many people inherit or how much each receives. A recipient-based tax can be tailored to each beneficiary's relationship to the deceased and the amount they receive, which is why most OECD countries prefer it. Limitation The classification is as at 2021; sub-national variation (for example between Spanish and Belgian regions, or Swiss cantons) is not captured in a single national label.

The revenue picture

A tax that raises very little

Across the OECD, inheritance, estate and gift taxes are a marginal revenue source. In 2019 they raised on average around 0.5% of total taxation in the countries that levied them, and about 0.36% averaged across all OECD members. The OECD attributes the low yield mainly to narrow tax bases: generous exemptions for close relatives and preferential treatment of certain assets, such as business and agricultural property.

Country / groupWealth-transfer tax revenue, 2019 (% of total tax revenue)
Korea (highest)~1.6%
Belgium~1.5%
France~1.4%
Japan~1.3%
United Kingdom~0.7%
OECD-24 average (levying countries)~0.5%
Lithuania, Poland, Hungary (lowest)below 0.1%

Source: OECD, Inheritance Taxation in OECD Countries, 2021, Figure 5, drawing on OECD Revenue Statistics 2020; data for 2019 (2018 for Greece and Japan). Approximate values other than the Korea figure are read from the OECD chart and are indicative to the nearest tenth of a percentage point.

The pattern shows that a country's headline rate tells you little about how much it collects. Korea and Belgium raise several times more, relative to total taxation, than the United Kingdom or the United States, because their bases are broader and more transfers fall within charge. Only four OECD countries, Belgium, France, Japan and Korea, cross 1% of total taxation. Limitation Revenue shares mix countries with very different tax systems and are sensitive to asset prices in the year measured.

Headline rates

Top statutory rates on a bequest to a child

Headline rates vary widely, from 55% at the top to zero in the countries that have repealed the tax. The figures below are the top statutory rate applying to a transfer to a child or direct descendant, which is generally the most favourable category. They are not effective rates: after exemptions and reliefs, the share actually paid is usually far lower, as the UK's 13% average effective rate shows.

CountryTop statutory rate to a child
Japan55%
South Korea50%
France45%
United Kingdom40%
United States40%
Spainup to ~34%
Ireland33%
Germany30%
Belgiumup to ~30%
Netherlands20%
Finland19%
OECD average / median~15% / ~7%

Source: Tax Foundation, Estate and Inheritance Taxes around the World, compiled from OECD and national data. The four highest rates (Japan, Korea, France, and the UK/US at 40%) are corroborated by OECD (2021) and Tax Policy Associates (2023). Rate vintage lower-ranked national rates reflect data from roughly 2015 to 2021 and may have changed; treat sub-national and single-country figures as indicative rather than live.

The United Kingdom sits mid-table on the headline rate. The three countries above it, Japan, Korea and France, combine higher top rates with broader bases, which is part of why they also raise more revenue. Spain and Belgium apply progressive schedules that vary by region and by the beneficiary's relationship to the deceased, so a single national figure understates their complexity.

Reach, not rate

How few estates actually pay

The more revealing comparison is not the rate but the reach: the share of estates that fall within charge at all. On the OECD's figures, most systems tax only a minority of estates, and several tax a very small fraction. The United States taxes almost none, despite a 40% headline rate, because its exemption is very large. Belgium's Brussels-Capital Region taxes nearly half of estates because its base is far broader.

CountryShare of estates subject to inheritance or estate tax (2019 or latest)
United States0.2%
United Kingdom4.0%
Italy6.4%
Lithuania8.0%
Japan9.0%
Germany10.1%
Switzerland (Zurich)12.7%
Belgium (Brussels-Capital)48.0%

Source: OECD, Inheritance Taxation in OECD Countries, 2021, Figure 6, from the OECD Questionnaire on Inheritance, Estate and Gift Taxes (2020); 2019 or latest available year. Limitation only eight countries reported comparable data; Belgium and Switzerland figures are sub-national.

The UK's own tax authority gives a consistent and more current reading. In 2023-24, 4.72% of UK deaths resulted in an inheritance tax charge, the highest share since 2006-07, when it was 5.96% (HMRC, 2023-24). That amounted to 30,400 estates and £7.03 billion of liabilities (HMRC, 2023-24). The average effective rate across taxpaying estates was 13%, against the 40% headline, reflecting exemptions, reliefs and tax-free allowances (HMRC, 2023-24).

Reading the two UK numbers together. The OECD's 4% of estates (2019) and HMRC's 4.72% of deaths (2023-24) measure slightly different things, an estate versus a death, in different years. They are close, and both support the same conclusion: inheritance tax in the UK reaches roughly one estate in twenty, not the majority. Neither figure should be read as the other, and both are dated to their year.

The backdrop

Wealth is concentrated, and so are inheritances

The OECD frames inheritance taxation against a backdrop of concentrated and rising wealth. The wealthiest households own a disproportionate share of assets, and they also receive the largest inheritances, which is the equity argument the OECD sets out for a well-designed tax.

MeasureFigureGeography and year
Wealth held by the wealthiest 10% of householdsabout 50%27 OECD countries, 2015 or latest
Wealth held by the wealthiest 1% of householdsabout 18%27 OECD countries, 2015 or latest
Financial wealth held by the wealthiest 20%nearly 80%OECD average, 2015 or latest
Households reporting an inheritance or substantial gift39% (Canada) to 66% (Finland)OECD, 2015 or latest
Average inheritance, wealthiest 20% of householdsUSD 30,000 to 526,000OECD, 2015 or latest
Average inheritance, poorest 20% of householdsUSD 300 to 11,000OECD, 2015 or latest

Source: OECD, Inheritance Taxation in OECD Countries, 2021, Figures 1, 3 and 4, drawing on the OECD Wealth Distribution Database and the World Inequality Database.

The distributional gap is stark: inheritances and gifts reported by the wealthiest 20% of households were close to 50 times larger than those reported by the poorest 20% (OECD, 2015 or latest year). The OECD notes that wealth transfers are likely to grow in value and number as asset prices rise and the baby-boom generation ages, which could reinforce wealth concentration. Limitation survey-based wealth and inheritance data understate the very top of the distribution and are dated to 2015 or the latest available year.

The United Kingdom in focus

Frozen thresholds against a rising base

The UK's inheritance tax is a 40% estate tax charged only above tax-free thresholds. The nil-rate band is £325,000 and the residence nil-rate band adds up to £175,000 where a home passes to direct descendants, so a couple may pass on up to £1,000,000 before the tax applies. A reduced 36% rate applies where at least 10% of the net estate goes to charity, and the residence band tapers away above a £2,000,000 estate.

These thresholds are frozen until 5 April 2031, the end of the 2030-31 tax year, after the freeze was extended a further year at Budget 2025 on 26 November 2025. Because thresholds are fixed while asset prices rise, a growing share of estates is drawn into charge over time, a process often called fiscal drag.

Source: gov.uk/inheritance-tax and gov.uk Budget 2025 (26 November 2025), as at July 2026, subject to change.

Latest receipts

£8.2bn

UK inheritance tax receipts in 2024-25, a record. The OBR's November 2025 forecast has receipts of about £8.7 billion in 2025-26, roughly 0.3% of national income, rising further as thresholds stay frozen.

Source: OBR, November 2025 forecast; 2024-25 outturn per HMRC receipts.

Reliefs and the 2026 reform

Two reliefs materially narrow the UK base. Agricultural property relief and business property relief together reduced inheritance tax liabilities by £5.96 billion in 2023-24, split as £2.11 billion of agricultural relief claimed by 2,140 estates and £3.85 billion of business relief claimed by 4,060 estates (HMRC, 2023-24). These reliefs are the UK equivalent of the narrow-base, preferential-asset treatment the OECD identifies across its members.

From 6 April 2026, the two reliefs are being reformed. Agricultural property relief and business property relief will give 100% relief on the first £2,500,000 of combined qualifying agricultural and business assets per person, and 50% relief above that threshold. The allowance is transferable between spouses and civil partners, giving up to £5,000,000 per couple, including where the first death occurred before 6 April 2026. The £2,500,000 figure was announced on 23 December 2025 and replaced an earlier £1,000,000 allowance proposed at Autumn Budget 2024 (gov.uk, 23 December 2025).

A note on dated official pages. Some gov.uk documents dated 30 October 2024 still show the earlier £1,000,000 allowance and describe it as not transferable. Those figures were superseded by the 23 December 2025 announcement of a £2,500,000 transferable allowance. This briefing uses the current figure. Likewise, the OBR forecast page reflects the November 2025 outlook, which pre-dates the 23 December 2025 relief change; its receipts trajectory should be read with that in mind.

Original analysis: three derived measures

The three measures below are Fairchild Oldfield's own calculations, combining public OECD, HMRC and OBR datasets. They are illustrative models, not official statistics, and every derived number is labelled as an estimate. They are offered to help compare systems, not to state any country's actual liability.

Derived estimate

1. The rate-versus-reach gap

What it shows. A high headline rate does not mean many families pay. Setting each country's top statutory rate against the share of estates actually taxed shows the two are only loosely related.

Logic. For each country with both figures, we place the top statutory rate to a child beside the OECD share of estates taxed. The United States pairs a 40% rate with 0.2% of estates taxed; the United Kingdom pairs 40% with about 4%; Japan pairs 55% with 9%; Germany pairs 30% with 10.1%. The estimate is simply the pairing and ranking, not a regression.

Inputs. Top rates from Tax Foundation (OECD and national data); share of estates taxed from OECD (2021), Figure 6.

Reading. Germany, on this pairing, taxes a larger share of estates (10.1%) than the UK (about 4%) despite a lower top rate (30% versus 40%), which points to base breadth mattering more than the headline rate.

Limitations. Rates and estate shares come from different years (roughly 2015-2021 for rates, 2019 for estate shares); only eight countries report estate-share data; some figures are sub-national. This is an illustrative comparison, not a behavioural model.

Derived estimate

2. Revenue intensity per point of rate

What it shows. How much revenue a system extracts relative to its headline rate, as a rough proxy for base breadth.

Formula (illustrative). Revenue intensity = (wealth-transfer tax revenue as % of total taxation, 2019) ÷ (top statutory rate to a child). A higher value indicates a broader base relative to the rate.

Worked estimates. Korea: 1.6 ÷ 50 = 0.032. Belgium: about 1.5 ÷ 30 = 0.050. France: about 1.4 ÷ 45 = 0.031. United Kingdom: about 0.7 ÷ 40 = 0.018. On this measure Belgium and Korea extract roughly two to three times more revenue per point of rate than the United Kingdom, consistent with their broader bases.

Inputs. Revenue shares from OECD (2021), Figure 5; rates from Tax Foundation.

Limitations. A deliberately crude ratio. It divides two figures from slightly different years, ignores exemption thresholds and rate schedules below the top rate, and treats a single national rate as representative. Values are estimates for comparison only, not efficiency measures.

Derived estimate

3. The UK fiscal-drag trajectory

What it shows. How fast UK inheritance tax receipts are set to grow while thresholds stay frozen.

Logic. Taking the OBR's forecast path from about £8.7 billion in 2025-26 toward a substantially higher figure by 2030-31, with thresholds frozen to 5 April 2031, the implied average growth is well above general inflation, driven by asset-price growth against fixed thresholds. We express this as an approximate compound annual growth rate over the forecast window.

Inputs. OBR (November 2025 forecast); threshold freeze from gov.uk and Budget 2025 (26 November 2025); the rising share of deaths taxed from HMRC (2023-24).

Limitations. The OBR figures are forecasts, not outturns, and are highly sensitive to house and equity prices. The November 2025 forecast pre-dates the 23 December 2025 agricultural and business relief change, which may alter the path. The growth rate is an estimate derived from a forecast and should not be read as an official projection.

Recommended charts

Five chart specifications for editors and analysts. Data and sources are named; no images are embedded.

ChartData and sourceThe insight / why it is citation-worthy
Wealth-transfer tax revenue by country (bar)Revenue as % of total taxation, 2019, by OECD country; OECD (2021) Figure 5Shows only four countries exceed 1%; anchors the "raises little" story with a clean cross-country ranking.
Share of estates taxed (bar)% of estates subject to tax, 2019 or latest, eight countries; OECD (2021) Figure 6Contrasts US 0.2% with Belgium 48%; the single strongest visual on reach.
Rate versus reach (scatter)Top statutory rate vs share of estates taxed; Tax Foundation rates + OECD Figure 6Visualises that the headline rate barely predicts how many estates pay; supports derived measure 1.
UK receipts trajectory (line)HMRC receipts to 2024-25 plus OBR forecast to 2030-31; HMRC and OBR (November 2025)Makes fiscal drag visible against frozen thresholds; a UK-specific news hook.
Wealth concentration (bar)Share of wealth held by top 1% and top 10%, by country; OECD (2021) Figure 1Sets the equity backdrop; the United States sits at the extreme with the top 10% owning about 80%.

Methodology

Source selection. Priority was given to primary and official sources: the OECD's 2021 study for cross-country comparison, HM Revenue and Customs for UK liabilities, the Office for Budget Responsibility for UK forecasts, and gov.uk for current thresholds and reliefs. Secondary sources (Tax Foundation, Tax Policy Associates) were used only where they clearly compile primary OECD or national data, and are tier-labelled below.

Inclusion and exclusion. A statistic was included only if its figure, year and geography could be verified against a named source with a working link. Figures that could not be traced to a source, or that a source did not actually support, were excluded. Chart-read values are flagged as approximate.

Handling conflicts. Where a figure differed between years or sources, the more recent primary figure was preferred and the difference noted. The OECD's "share of estates taxed" (about 4%, 2019) and HMRC's "share of deaths taxed" (4.72%, 2023-24) are reported side by side and explicitly described as different measures in different years. Where gov.uk pages still show the superseded £1,000,000 agricultural and business relief allowance, the current £2,500,000 figure announced on 23 December 2025 is used and the discrepancy flagged.

How estimates were calculated. The three derived measures in the analysis section combine the datasets named in each box. Each is labelled a derived estimate or model, with its formula, inputs and limitations stated. None is an official statistic.

Data limitations. Cross-country revenue and estate-share data are dated to 2019 or the latest available year; top statutory rates reflect roughly 2015 to 2021 and may have changed; sub-national variation (Belgian regions, Swiss cantons, Spanish autonomous communities) is not fully captured; survey-based wealth data understate the top of the distribution; OBR figures are forecasts sensitive to asset prices.

Last updated. July 2026. Figures are current as at that date and are subject to change.

Source quality ranking

SourceUsed forTier
OECD, Inheritance Taxation in OECD Countries (2021)Cross-country design, revenue, estate shares, wealth dataTier 1
HMRC, Inheritance Tax liabilities statistics (2023-24)UK estates taxed, deaths, effective rate, reliefsTier 1
Office for Budget Responsibility, inheritance tax forecastUK receipts and forecast trajectoryTier 1
gov.uk, Inheritance Tax and Budget 2025 / relief reformCurrent UK thresholds, rates, reliefsTier 1
Tax Foundation, Estate and Inheritance Taxes around the WorldTop statutory rates by country (compiling OECD/national data)Tier 2
Tax Policy Associates, Comparison of OECD inheritance taxes (2023)Corroboration of top-rate ranking and UK contextTier 3

For journalists

Most quotable statistics

  • 24 of 36 OECD countries levied an inheritance or estate tax as at 2021 (OECD, 2021).
  • Inheritance, estate and gift taxes raised on average about 0.5% of total taxation in 2019 in the countries that levy them (OECD, 2019 data).
  • Japan's 55% top rate on a bequest to a child is the OECD's highest; the UK and US share 40% (Tax Foundation, OECD and national data).
  • Only about 4% of UK estates were subject to inheritance tax in 2019, against 0.2% in the US and 48% in Belgium's Brussels-Capital Region (OECD, 2019 or latest year).
  • 4.72% of UK deaths incurred an inheritance tax charge in 2023-24, the highest since 2006-07 (HMRC, 2023-24).
  • UK taxpaying estates paid an average effective rate of 13% in 2023-24, not the 40% headline (HMRC, 2023-24).
  • Agricultural and business property reliefs cut UK inheritance tax liabilities by £5.96 billion in 2023-24 (HMRC, 2023-24).
  • UK inheritance tax raised about £8.2 billion in 2024-25 and is forecast to keep rising while thresholds are frozen to April 2031 (OBR, November 2025 forecast).

Data limitations

Cross-country revenue and estate-share figures are dated to 2019 or the latest available year; top statutory rates reflect roughly 2015-2021; sub-national systems are simplified to a national label; survey-based wealth and inheritance data understate the very top; OBR figures are forecasts, not outturns, and pre-date the 23 December 2025 relief change.

Recommended dataset fields

For a downloadable companion dataset: country; region (where sub-national); tax design (estate / inheritance / none); top statutory rate to a child; year of rate; revenue as % of total taxation; revenue year; share of estates taxed; estate-share year; primary source; source tier; notes/flags.

Press summary (about 150 words)

Inheritance tax draws heavy political argument but raises little money. Across the OECD, 24 of 36 countries levied an inheritance or estate tax as at 2021, and on average these taxes brought in only about 0.5% of total taxation in 2019; just four countries, Belgium, France, Japan and Korea, crossed 1% (OECD, 2021). Headline rates range from Japan's 55% down to zero in the ten countries that have repealed the tax. Yet rates say little about reach: the United States taxes 0.2% of estates despite a 40% rate, while Belgium's Brussels region taxes 48%. The United Kingdom sits in between, with a 40% rate but only about 4% of estates taxed (OECD) and 4.72% of deaths charged in 2023-24 (HMRC). UK taxpaying estates paid an average effective rate of 13%, and receipts reached about £8.2 billion in 2024-25 as frozen thresholds pull in more families.

Five suggested headlines

  • Only four OECD countries raise more than 1% of tax from inheritance
  • Japan taxes bequests at 55%. The US taxes 0.2% of estates. Both miss the point
  • Britain's inheritance tax reaches one estate in twenty, not the many
  • The 40% headline, the 13% reality: what UK estates actually pay
  • Frozen thresholds, rising receipts: the OECD context for the UK's £8bn tax

Frequently asked questions

How many OECD countries have an inheritance tax?

24 of the 36 OECD countries levied an inheritance or estate tax as at 2021, according to the OECD's study Inheritance Taxation in OECD Countries. Twenty use recipient-based inheritance taxes charged on what each beneficiary receives, while Denmark, Korea, the United Kingdom and the United States levy donor-based estate taxes on the whole estate. Ten member countries have repealed such taxes since 1961.

How much revenue does inheritance tax raise across the OECD?

Inheritance, estate and gift taxes raised on average about 0.5% of total taxation in 2019 in the OECD countries that levy them, and about 0.36% averaged across all members, per the OECD (2019 data). Revenues exceeded 1% of total taxation in only four countries: Belgium, France, Japan and Korea. The OECD attributes the low yield mainly to narrow tax bases.

Which country has the highest inheritance tax rate?

Japan has the highest top statutory rate on a bequest to a child at 55%, followed by South Korea at 50% and France at 45%, according to Tax Foundation data compiled from OECD and national sources. The United Kingdom and the United States share a 40% top rate. These are top statutory rates, not effective rates, which after reliefs are usually much lower.

How does UK inheritance tax compare internationally?

The United Kingdom sits mid-table. Its 40% headline rate is high by OECD standards but below Japan, Korea and France, and it taxed only about 4% of estates in 2019, against 0.2% in the United States and 48% in Belgium's Brussels-Capital Region (OECD, 2019 or latest year). Our sibling briefing on inheritance tax around the world covers the country detail.

What share of UK estates actually pay inheritance tax?

In 2023-24, 4.72% of UK deaths resulted in an inheritance tax charge, the highest share since 2006-07 and equal to 30,400 estates, according to HMRC. This is consistent with the OECD's figure of about 4% of UK estates taxed in 2019. Inheritance tax in the UK reaches roughly one estate in twenty, not the majority.

What is the average effective inheritance tax rate in the UK?

The average effective rate paid by taxpaying UK estates was 13% in 2023-24, well below the 40% headline rate, according to HMRC. The gap reflects the nil-rate band, the residence nil-rate band, spousal exemption and reliefs such as agricultural and business property relief, which together reduce the taxable value of many estates.

Why do so few UK estates pay inheritance tax despite a 40% rate?

Because the base is narrow. A 40% rate applies only above the £325,000 nil-rate band, with up to a further £175,000 residence nil-rate band where a home passes to descendants, and transfers between spouses are generally exempt. Agricultural and business property reliefs cut liabilities by £5.96 billion in 2023-24 (HMRC). Narrow bases are why headline rates poorly predict how many estates pay.

How much does UK inheritance tax raise, and is it rising?

UK inheritance tax raised about £8.2 billion in 2024-25, a record, and the Office for Budget Responsibility's November 2025 forecast has it at roughly £8.7 billion in 2025-26, about 0.3% of national income. Receipts are forecast to keep rising while thresholds are frozen until 5 April 2031, because asset prices grow against fixed allowances.

Have any OECD countries abolished inheritance tax?

Yes. Ten OECD members repealed their inheritance or estate taxes between 1961 and 2014, including Mexico (1961), Canada (1972), Australia (1979), Israel (1980), New Zealand (1992), the Slovak Republic (2004), Sweden (2004), Austria (2008), and both the Czech Republic and Norway (2014), per the OECD. Estonia and Latvia never levied one. The OECD cites low revenue and administrative cost among the reasons.

How concentrated is the wealth that inheritance tax targets?

Highly. Across 27 OECD countries, the wealthiest 10% of households own about half of all household wealth and the wealthiest 1% own about 18%, per the OECD (2015 or latest year). Inheritances and gifts reported by the wealthiest 20% of households were close to 50 times larger than those reported by the poorest 20%, which is the equity argument the OECD sets out for a well-designed tax.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax and client care, working with families across England and Wales. This research briefing reports public data for general information.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This briefing is general information and factual data reporting, not legal, tax or financial advice.

Important: This briefing is general information and factual data reporting only, and is not legal, tax or financial advice. Reading it does not create a professional relationship. It defaults to the law of England and Wales, and other UK and OECD jurisdictions differ. All figures are dated to their stated year and geography, are current as at July 2026, and are subject to change. Derived measures are clearly labelled estimates or models, not official statistics. Before acting, many people choose to seek advice from a suitably qualified professional who can consider their individual circumstances.

Related reading: Estate Planning: a complete UK guide · Inheritance Tax explained · Inheritance tax around the world.

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