- Basic formula: (net acquisition - Freibetrag - Versorgungsfreibetrag) x Steuersatz (tax rate under ErbStG) by class = Erbschaftsteuer (German inheritance tax)
To calculate Erbschaftsteuer yourself is not difficult — anyone who knows the basic formula reaches the right ballpark with a pocket calculator. The complexity lies in the details: the correct net acquisition, the valuation of real estate and business assets, flat rates and special exemptions.
Erbschaftsteuer = (asset value minus Freibetrag) x Steuersatz by class. Three figures you need to know: net acquisition, your Freibetrag, your Steuersatz. With these three you have 80 percent of the tax burden estimated in 5 minutes.
The basic formula
Step 1: calculate the net acquisition Net acquisition = assets - debts - funeral costs - household-goods flat rate
Step 2: deduct the Freibetrag Taxable acquisition = net acquisition - personal Freibetrag - Versorgungsfreibetrag
Step 3: apply the Steuersatz Erbschaftsteuer = taxable acquisition x Steuersatz by class and amount
Step 1: determine the net acquisition
| Item | Treatment |
|---|---|
| Real estate | Market value under BewG |
| Bank balances | Account balance on date of death |
| Securities | Price on date of death |
| Life insurance | Payout amount |
| Business assets | Special rules § 13a/b ErbStG |
| Household goods (Class I) | Up to EUR 41,000 flat tax-free |
| Debts | Deductible |
| Funeral costs | EUR 10,300 flat (or invoices) |
| Care services | Up to EUR 20,000 care-Freibetrag |
Important: debts and liabilities of the Erblasser (testator) are deductible in full. Liabilities arising from legacies and Pflichtteil (compulsory share, § 2303 BGB) claims also reduce the net acquisition.
Step 2: determine the Freibetrag
Per Erbe (heir) individually by degree of kinship:
| Degree of kinship | Freibetrag |
|---|---|
| Spouses | EUR 500,000 |
| Children | EUR 400,000 per parent |
| Grandchildren (parents alive) | EUR 200,000 |
| Grandchildren (parents predeceased) | EUR 400,000 |
| Parents on inheritance | EUR 100,000 |
| Siblings, nieces, nephews | EUR 20,000 |
| All others | EUR 20,000 |
In addition, the Versorgungsfreibetrag (only for spouses and children up to 27) — see spoke Erbschaftsteuer Freibetraege.
Step 3: apply the Steuersatz
| Value over Freibetrag | Class I | Class II | Class III |
|---|---|---|---|
| up to EUR 75,000 | 7 % | 15 % | 30 % |
| 75,000 – 300,000 EUR | 11 % | 20 % | 30 % |
| 300,000 – 600,000 EUR | 15 % | 25 % | 30 % |
| 600,000 – 6,000,000 EUR | 19 % | 30 % | 30 % |
| 6,000,000 – 13,000,000 EUR | 23 % | 35 % | 50 % |
| 13,000,000 – 26,000,000 EUR | 27 % | 40 % | 50 % |
| over EUR 26,000,000 | 30 % | 43 % | 50 % |
IMPORTANT: the Steuersatz applies to the WHOLE acquisition, not just the part above the threshold (unlike income tax). Anyone inheriting EUR 75,001 above the Freibetrag pays 11 percent on all EUR 75,001 — not just on the one euro above the threshold.
Six worked examples from practice
Example 1: daughter inherits EUR 600,000 from her mother
- Net acquisition: EUR 600,000
- Freibetrag Class I: EUR 400,000
- Taxable: EUR 200,000
- Steuersatz (second bracket): 11 percent
- Erbschaftsteuer: EUR 22,000
Example 2: husband inherits EUR 1,500,000 from his wife
- Net acquisition: EUR 1,500,000
- Freibetrag: EUR 500,000
- Versorgungsfreibetrag: EUR 256,000 (provided there is no survivor's pension)
- Taxable: EUR 744,000
- Steuersatz: 19 percent (fourth bracket)
- Erbschaftsteuer: EUR 141,360
Example 3: son inherits EUR 250,000 from his father
- Net acquisition: EUR 250,000
- Freibetrag: EUR 400,000
- Taxable: EUR 0
- Erbschaftsteuer: EUR 0
Example 4: sister inherits EUR 400,000 from her brother
- Net acquisition: EUR 400,000
- Freibetrag Class II: EUR 20,000
- Taxable: EUR 380,000
- Steuersatz: 25 percent (third bracket)
- Erbschaftsteuer: EUR 95,000
Example 5: grandchild inherits EUR 300,000 from grandmother (parents alive)
- Net acquisition: EUR 300,000
- Freibetrag Class I: EUR 200,000
- Taxable: EUR 100,000
- Steuersatz: 11 percent
- Erbschaftsteuer: EUR 11,000
Example 6: life partner (unmarried) inherits EUR 100,000
- Net acquisition: EUR 100,000
- Freibetrag Class III: EUR 20,000
- Taxable: EUR 80,000
- Steuersatz: 30 percent
- Erbschaftsteuer: EUR 24,000
Step by step: calculate Erbschaftsteuer yourself in 6 stages
- Asset inventory. Document all asset values as at the date of death — accounts, depots, real estate, insurance.
- Capture debts and charges. Mortgages, loans, open invoices, funeral costs.
- Calculate net acquisition per Erbe. With multiple Erben (heirs): each one pays tax on their share separately.
- Apply the Freibetrag per Erbe. By degree of kinship — see table.
- Steuersatz by class and amount. Identify the correct rate from the staggered table.
- Multiply tax and check. Use an online calculator to cross-check.
Online calculators and their limits
There are numerous Erbschaftsteuer calculators on the internet — including the Erbschaftsteuer calculator on florian-enders.de. These are useful for quick estimates but have limits:
- Complex valuations (business assets, family-home exemption, Verschonungsabschlag) cannot be modelled
- Versorgungsfreibetrag reduction by survivor pensions is not modelled
- Valuation discretion on real estate is not captured
- The 10-year prior-acquisition rule is often simplified
For the definitive calculation — especially with larger estates — the Steuerberater (German tax advisor) statement is mandatory.
Comparison: 5 heirs, the same estate
Starting point: the Erblasser leaves EUR 600,000 to various persons.
| Erbe | Class | Freibetrag | Taxable | Rate | Erbschaftsteuer |
|---|---|---|---|---|---|
| Wife | I | EUR 500,000 | EUR 100,000 | 11 % | EUR 11,000 |
| Child | I | EUR 400,000 | EUR 200,000 | 11 % | EUR 22,000 |
| Grandchild (parents alive) | I | EUR 200,000 | EUR 400,000 | 15 % | EUR 60,000 |
| Brother | II | EUR 20,000 | EUR 580,000 | 25 % | EUR 145,000 |
| Life partner | III | EUR 20,000 | EUR 580,000 | 30 % | EUR 174,000 |
The difference between wife (EUR 11,000) and life partner (EUR 174,000) on the identical inheritance makes one thing clear: the legal form (marriage vs life partnership) has six-figure tax consequences.
Frequently asked questions
How do I calculate Erbschaftsteuer myself?
Three steps: (1) calculate the net acquisition (assets minus debts minus flat rates), (2) deduct the Freibetrag, (3) apply the Steuersatz by class and amount. Example: daughter inherits EUR 600,000 from her father. EUR 600,000 minus EUR 400,000 Freibetrag = EUR 200,000 taxable x 11 % = EUR 22,000 tax.
Does the rate apply to the whole amount or only the excess?
To the WHOLE taxable acquisition. With EUR 76,000 over the Freibetrag, Class I heirs pay 11 percent on all EUR 76,000 — not 7 percent on EUR 75,000 and 11 percent on EUR 1,000.
What counts towards the net acquisition?
All assets at the date of death (real estate, accounts, depots, insurance, household goods above the flat rate) less all debts, funeral costs (EUR 10,300 flat) and liabilities from legacies and Pflichtteile.
How are life-insurance policies treated?
The payout amount is taxable like cash — unless the policy was structured correctly (beneficiary other than the heir, separate contract). With the right structure the policy can flow tax-free directly to the beneficiary.
What about the family home?
Spouses inherit the owner-occupied family home entirely tax-free (§ 13 Abs. 1 Nr. 4b ErbStG). Children up to 200 sqm of living space, if they move in themselves (§ 13 Abs. 1 Nr. 4c ErbStG). 10-year owner-occupation holding period.
How do Schenkungen (gifts under German law) from the last 10 years affect the calculation?
Schenkungen are added to the inheritance and the Freibetrag is deducted once (§ 14 ErbStG). Anyone who received a EUR 200,000 gift from their father and inherits EUR 500,000 three years later has EUR 700,000 in total — Freibetrag EUR 400,000, so EUR 300,000 taxable.
When do I have to pay the tax?
Within 1 month of assessment by the tax office. For larger amounts payment in instalments over up to 10 years is possible, with interest (§ 28 ErbStG). For real-estate inheritances the deferral is important when no liquidity is available.
Do I need a Steuerberater?
For small inheritances under EUR 100,000 with a simple family constellation often not. For larger estates, real-estate valuation, business assets, foreign connections or multiple heirs almost always — the Steuerberater's fees pay for themselves quickly through valuation discretion and structural advice.
Further detail answers
- Erbschaftsteuer 2026: allowances, tax rates, guide — Main guide
- Erbschaftsteuer Freibetraege — table 2026
- Erbschaftsteuer for children
- Erbschaftsteuer real estate and house
- Erbschaftsteuer for siblings
- Erbschaftsteuer table 2026
- Topic hub Erbschaftsteuer
Lead magnet: calculate the tax burden
- Erbschaftsteuer calculator — Online quick calculation in 3 minutes.
- Erbschaftsteuer quick check — Initial assessment in 5 questions.
- Succession checklist — Structured asset inventory.
- Arrange a first meeting — Individual calculation and optimisation.
Authority sources
- § 10 ErbStG (taxable acquisition)
- § 14 ErbStG (aggregation of earlier acquisitions)
- § 15 ErbStG (tax classes)
- § 16 ErbStG (allowances)
- § 17 ErbStG (Versorgungsfreibetrag)
- § 19 ErbStG (tax rates)
- § 28 ErbStG (deferral)
- § 30 ErbStG (reporting duty)
- BewG (Valuation Act)
- BFH judgment of 17.06.2020 — II R 33/17 (family-home exemption in calculation)
- BFH judgment of 27.11.2019 — II R 1/16 (Verschonungsabschlag in calculation)
Free guide
Inheritance Tax Quick Check
Tax brackets, allowances, 5 levers
Compact PDF guide with all tables, 3 worked examples and the most important levers to reduce inheritance tax.
- ✓ 8 pages, dense tables
- ✓ Tax brackets and allowances at a glance
- ✓ 3 worked examples plus 5 levers
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