Inheritance: how to value assets and calculate inheritance tax

Inheritance tax is calculated heir by heir: the inventory and value of the assets, each heir's share, the allowance and tax brackets based on their relationship to the deceased, and any applicable reductions. The starting point is the net taxable estate: the gross estate (the value of the deceased's assets) minus the liabilities. In principle, the tax is paid in full upon filing the inheritance tax return.

This page covers valuation, deductible debts, calculation, reporting, and payment. It does not cover securities valuation, assurance-vie, or taxation applicable to non-residents. Allowances based on family relationships are provided as a guide; a dedicated page details them.

The four steps of the calculation

For an inheritance with multiple heirs, service-public.gouv.fr (fact sheet F14198, verified on 09/02/2026) describes four steps. For a single heir, the fact sheet lists three: the step of calculating each heir's share is eliminated.

1. Take inventory and determine the value of the estate (gross assets, then net taxable assets).
2. Calculate each heir's share.
3. Apply the allowances and the scale according to the relationship with the deceased.
4. Deduct any potential reduction in rights.

Each heir's share depends on the order of succession, any gifts already received, any gift to the surviving spouse, and any will. Each heir's taxable share is then the taxable estate assets, less their personal allowance (economie.gouv.fr, page dated 24/02/2025).

Step 1: Evaluate the gross asset

The 20% tax allowance on the main residence

The deceased's main residence, whether a house or apartment, may, under certain conditions, benefit from a 20% reduction in its value. The property must have been the deceased's main residence on the day of death.

• of the spouse or civil partner of the deceased; ;
• of a child, minor or protected adult, of the deceased, of his or her spouse or of his or her civil partner; ;
• of an adult child whose physical or mental disability prevents them from having a sufficient income.

Step 1 (continued): Deductible liabilities

To be deductible, a debt must exist on the date of death and be provable (F14198). Deductible debts include, but are not limited to:

• healthcare costs (hospital, for example); ;
• the costs of accommodation and care in retirement homes or nursing homes; ;
• loans (principal and interest) due on the day of death; ;
• taxes owed by the deceased; ;
• funeral expenses, up to a limit of €1,500; ;
• rent to be reimbursed to the surviving spouse or civil partner for their temporary right to housing.

The information sheet also indicates that property tax is deductible. The complete list can be found in information sheet F14198.

Debts acknowledged by a will, as well as debts that were due more than three months before death, are not deductible. The information sheet advises checking if the loan was covered by assurance-vie. Debts that are more than three months overdue are presumed to be repaid, unless the creditor proves otherwise. They must nevertheless be settled.

Steps 2 and 3: each heir's share, allowances, tax brackets

The tax authorities take into account gifts made during the deceased's lifetime: these are added to the heir's share (for tax purposes). Gifts made more than 15 years prior and family gifts of money declared within one month of the gift are excluded. Without a will, the children share the estate equally (service-public.gouv.fr, fact sheet F1270, verified on 05/10/2026).

Tax allowances based on family ties, taken from service-public.gouv.fr (sheet F35794, verified on 19/08/2026) and economie.gouv.fr:

A brother or sister is exempt from inheritance tax if they meet three conditions at the time of death (F35794): they must have been continuously domiciled with the deceased for the 5 years preceding the death; they must be single, widowed, divorced, or legally separated; and they must be over 50 years of age or have a disability that prevents them from working. Proof of this must be provided.

An additional allowance of €159,325 is available for eligible disabled individuals. The surviving spouse is exempt from inheritance tax. The surviving civil partner is also exempt from inheritance tax; however, without a will, they inherit no assets (economie.gouv.fr).

Direct line tax brackets, applied to the taxable portion after allowances. The table indicates the upper limit of each bracket.

Step 4: The reduction

For a disability of at least 50 %, a war veteran is entitled to a maximum reduction of €305 on the benefits to be paid.

Usufruct and bare ownership: a scale

When an inheritance includes a usufruct, the value of the usufruct and that of the bare ownership are calculated based on the age of the usufructuary. The BOFiP (BOI-ENR-DMTG-10-40-10-50, version in force on 23/12/2013) reproduces the scale from Article 669 of the French General Tax Code (CGI) in nine lines. The usufruct is worth 90 % of the full ownership (bare ownership 10 %) for a usufructuary under 21 years of age, 50 % / 50 % for a usufructuary under 61 years of age, 30 % / 70 % for a usufructuary under 81 years of age, and 10 % / 90 % for a usufructuary over 91 years of age. The intermediate lines can be read in the BOFiP.

The BOFiP specifies that "death has the effect of simultaneously opening" the usufruct of the surviving spouse and the bare ownership of the heir.

Numerical example (fictitious profile)

Situation. Hélène, a widow, dies in 2026 without a will. She leaves two children, Julie, an adult, and Thomas, 16, who lives with her in the family home. Hypothetical profile assumptions:

• The house, valued at €600,000, belongs entirely in full ownership to Hélène; it is, on the day of death, the main residence of Hélène and Thomas; ;
• the accounts are worth €90,000, a vehicle €12,000 and the furniture, with a notarized inventory, €20,000; ;
• a loan of €80,000, not covered by insurance, was due on the day of death; the funeral cost €4,200; a bill of €2,500 had been overdue for more than 3 months; ;
• no other assets or debts, no assurance-vie, no will, no gifts for 15 years; ;
• The inheritance tax return is filed within the deadline.

Issue. What rights does each child have to pay?

Strategy. Evaluate the asset, deduct the deductible liability, divide equally, apply the allowance and then the scale.

Result.

Breakdown of each child's entitlement: €403.60 on €8,072 at 5 %, €403.70 on €4,037 at 10 %, €573.45 on €3,823 at 15 %, then €28,863.60 on €144,318 at 20 %. The outstanding invoice of €2,500 is not deducted. Without the 20 % allowance on the house, the base would be €120,000 higher and the entitlements for both children would reach €84,488.70, i.e., €24,000 more.

This profile is fictitious. The figures illustrate the calculation and do not predict your situation.

Declaration and payment

Statement. According to information sheet F80 (verified on 29/01/2025), the declaration must be filed within 6 months of the date of death, or 12 months if the death occurred abroad. The services of a notary are mandatory for settling certain estates, particularly when real estate is involved, there is a will, a gift to the surviving spouse, a prior gift, a marriage contract, or if a certificate of heirship is required. It is not mandatory in other cases. An exemption from filing a declaration exists under certain conditions regarding the amount of the estate and the relationship to the deceased: these conditions are detailed in information sheet F80. In case of delay, late payment interest is 0.20 per month (2.40 per year), and a surcharge of 10 to 80 may be added depending on the circumstances.

Payment. Taxes are generally paid in full when the return is filed (impots.gouv.fr). Cash is accepted up to €300, checks made payable to the Public Treasury are accepted for amounts less than €1,000 (a bank check is required for amounts exceeding this), as well as bank cards and bank transfers.

Split or deferred.

• The installment payment is made in equal installments over a maximum period of one year after the filing deadline (a maximum of three installments). This period is extended to three years (a maximum of seven installments) if the estate includes at least 50 illiquid assets.
• Deferred payment applies to taxes due on bare ownership assets, the surviving spouse's life interest in the property, and the preferential allocation of a farm. For a business transfer, the deferral can be extended up to 5 years, and then the payments can be spread over up to 10 years, subject to certain conditions.
• The request must be in writing, attached to the declaration, and include the agreement of all heirs. The administration responds within two months; if the request is granted, the security (such as a mortgage) must be provided within four months.
• According to impots.gouv.fr, the interest rate is 2% for applications submitted since January 1, 2026; for certain business transfers, this rate may be reduced to 0.6%. Form F36432 indicates that the rate is specified in the payment authorization.

The heirs are jointly liable for the payment of inheritance tax: the tax authorities can claim the full amount from any one of them. There is no joint liability between heirs and legatees, nor between legatees themselves.

What changes depending on your situation

• The link with the deceased, which sets the allowance and the scale.
• Gifts received of the deceased, according to their date.
• The nature of the goods : main residence occupied or not by a targeted relative, securities, split of ownership.
• A will or a gift to the surviving spouse, which change everyone's share.

The rule depends on your situation. No results are guaranteed.