Inheritance tax thresholds in Ireland 2026
Capital Acquisitions Tax (CAT) in Ireland is charged at 33% on the value of inheritances above the relevant group threshold. Group A is €400,000, Group B is €40,000, and Group C is €20,000. These figures are confirmed for 2026 and unchanged from Budget 2026.
Every inheritance in Ireland is either within a group threshold (tax-free) or above it (taxable at 33%). The three group thresholds are lifetime figures, not annual ones. Every gift or inheritance received from anyone in the same group since 5 December 1991 counts towards the threshold. Once the threshold is crossed, the excess is taxed at 33%.
This page covers the current thresholds, how aggregation works, which relationships fall into which group, the main exemptions, and worked examples for typical Irish estates.
Current thresholds (April 2026)
| Group | Relationship | Threshold |
|---|---|---|
| A | Parent to child (including stepchild, adopted child, certain foster children, and minor grandchildren where the parent has died) | €400,000 |
| B | Sibling, niece, nephew, grandchild aged 18 or over, great-grandchild, lineal ancestor, lineal descendant other than those in Group A | €40,000 |
| C | All other relationships, including cousins, friends, unmarried partners | €20,000 |
The rate on amounts above the threshold is 33%. These figures are confirmed in Budget 2026 and are unchanged from Budget 2025.
How aggregation works
Thresholds are lifetime limits, not annual or per-estate. Every gift or inheritance received in the same group since 5 December 1991 counts against the lifetime threshold.
For example, a daughter who received a €150,000 gift from her mother in 2010 has a remaining Group A threshold of €253,000 (€400,000 minus the €147,000 taxable portion of the 2010 gift, after the €3,000 Small Gift Exemption for that year). If her mother dies in 2026 and leaves her €500,000, €253,000 is tax-free and €247,000 is taxed at 33%. CAT due: €81,510.
Aggregation runs separately for each group. The same beneficiary could have a Group A position (from her parents) and a Group B position (from her siblings), and the thresholds do not affect each other.
Spouse and civil partner exemption
Inheritances between spouses or civil partners are fully exempt from CAT without limit. The amount passing to a surviving spouse does not count against any threshold, because the exemption is absolute. The spouse does not need to file an IT38 return for the inheritance.
This is the single most important rule in Irish inheritance tax planning. Estates that leave everything to a surviving spouse or civil partner have no CAT liability on first death, regardless of estate size.
Small Gift Exemption
The €3,000 Small Gift Exemption applies to lifetime gifts only, not to inheritances on death. Each person can receive up to €3,000 per year from each donor, tax-free, without any aggregation. A child with two living parents can receive €6,000 per year between them with no tax effect.
The Small Gift Exemption is the basis of most tax-efficient lifetime gifting in Ireland. It does not reduce inheritance amounts on death.
Group A relationships in detail
Group A is parent to child. "Child" includes:
- Natural children
- Adopted children (fully adopted under Irish law)
- Stepchildren
- Certain foster children (under the specific foster children conditions)
- Minor grandchildren of a deceased child (where the grandchild's parent has died, the grandchild inherits the parent's Group A treatment)
A child inheriting from a parent has a €400,000 threshold. A child inheriting from a grandparent normally falls into Group B, unless the grandchild is a minor and the grandchild's own parent has died, in which case Group A applies.
Group B relationships in detail
Group B is siblings and more distant blood relatives:
- Siblings, half-siblings
- Nieces and nephews
- Grandchildren aged 18 or over (who do not qualify for Group A)
- Lineal ancestors (parents, grandparents of the beneficiary)
- Lineal descendants (children, grandchildren) other than those in Group A
Group B threshold is €40,000. An aunt leaving €100,000 to a niece triggers CAT on €60,000 at 33%, or €19,800, unless the "favourite nephew or niece" relief applies.
Favourite nephew or niece relief can promote a Group B niece or nephew to Group A treatment, but only where the niece or nephew has worked substantially full-time in the deceased's business for the five years before the transfer. It is a narrow relief. Full favourite nephew or niece relief guide.
Group C relationships
Group C captures everyone not in Group A or B. Cousins, friends, unmarried partners, and any beneficiary with no blood or legal relationship fall into Group C with a €20,000 threshold.
Unmarried partners are the single most common Group C beneficiaries in Ireland. A cohabiting partner who inherits from their deceased partner falls into Group C unless they are in a registered civil partnership or marriage. The €20,000 threshold combined with the 33% rate means that an unmarried partner inheriting a €400,000 estate from their partner pays €125,400 in CAT (on €380,000 above threshold), compared to zero for a married spouse. This is one of the strongest financial arguments for marriage or civil partnership in Ireland.
Worked example: standard parent-to-child
A father dies in 2026 leaving his daughter a family home worth €450,000 and €50,000 in savings. She has received no previous gifts from him.
- Total inheritance: €500,000
- Group A threshold: €400,000
- Taxable amount: €100,000
- CAT at 33%: €33,000
If the dwelling house exemption applies (three years' pre-death residence, no other dwelling house at the date of inheritance, six years' post-inheritance continued residence), the €450,000 house is fully exempt, leaving only €50,000 of savings to be tested against the threshold. That is under the threshold, so no CAT is due. Full dwelling house exemption rules.
Get your personalised CAT liability estimate
The Readiness Check calculates your specific CAT exposure using your actual numbers: estate value, prior gifts, relationship, dwelling house eligibility, Section 72 policies. Takes 10 minutes, produces a six-to-ten-page personalised report.
Get the Probate Readiness Check (€79)Worked example: aunt to niece with prior gift
An aunt leaves her niece €80,000. The niece received a €15,000 gift from the same aunt in 2018 (this is not sheltered by the Small Gift Exemption because it was a single €15,000 transfer, not annual instalments within the €3,000 limit).
- Prior Group B receipts: €12,000 (€15,000 minus €3,000 Small Gift Exemption for that year)
- This inheritance: €80,000
- Total Group B receipts: €92,000
- Group B threshold: €40,000
- Taxable amount: €52,000
- CAT at 33%: €17,160
The niece files an IT38 return by 31 October following the valuation date (the same year if the valuation date is Jan to Aug, the following year if Sep to Dec). Full IT38 filing guide.
Worked example: unmarried partner
A woman dies and leaves her cohabiting partner (unmarried, not civil-partnered) the family home worth €500,000. The partner has received no prior gifts from her.
- Total inheritance: €500,000
- Group C threshold: €20,000
- Taxable amount: €480,000
- CAT at 33%: €158,400
Unless the partner qualifies for dwelling house exemption (which has strict residence requirements), there is no relief from this charge. The same transfer to a spouse would be fully exempt. Partners in Ireland who plan to share an estate should seriously consider civil partnership or marriage, or structure a Section 72 life insurance policy to cover the CAT charge. Section 72 policies explained.
Reliefs that reduce CAT
Several reliefs reduce CAT on qualifying inheritances:
- Dwelling House Exemption. 100% exemption on the family home where the beneficiary meets specific residence requirements. Full guide.
- Agricultural Relief. 90% reduction on qualifying agricultural property where the beneficiary qualifies as a farmer and satisfies the 80%-of-assets test. Full guide.
- Business Relief. 90% reduction on qualifying business assets held for at least two years. Full guide.
- Favourite Nephew or Niece Relief. Promotes a Group B niece or nephew to Group A where they worked substantially full-time in the deceased's business for five years. Full guide.
- Section 72 Life Insurance. Proceeds of an approved Section 72 policy are tax-free when used to pay the CAT on the estate. Full guide.
These reliefs are the heart of Irish inheritance tax planning. Used correctly, they move estates worth several million euro out of the CAT charge entirely. Used incorrectly, the relief is lost and the full 33% applies.
When a solicitor is essential for CAT planning
DIY CAT works for straightforward parent-to-child inheritances with a family home and standard savings. A solicitor or tax adviser is essential where:
- Agricultural relief or business relief is being claimed
- The estate involves assets outside Ireland (cross-border CAT and Double Taxation Agreements)
- The dwelling house exemption is being claimed on a property the beneficiary shares with others
- Any relief is likely to be challenged by Revenue
Get specific advice for specific reliefs. The 33% rate is high enough that a mistake is expensive.
What to do next
A personalised diagnostic report telling you in plain English whether you need probate, whether you can do it yourself, what it will cost, how much inheritance tax the family will owe, and what to do in the next 14 days. If you later upgrade, we take €50 off the next pack.
Get the Probate Readiness Check for €79
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