IRS sets 2027 estate and gift tax exemption at $15.48 million

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The Internal Revenue Service has announced a higher estate and gift tax exemption for 2027.

In a Thursday announcement, the agency raised the federal basic exclusion amount to $15.48 million per individual for 2007, up from $15 million in 2026. This exemption covers tax‑free transfers made during life and at death.

State‑level estate and inheritance tax exemptions may be lower than the federal amount.

The IRS also updated numerous other tax provisions for 2027, including federal income tax brackets, capital gains tax brackets, and eligibility thresholds for the earned income tax credit, among additional adjustments.

These inflation‑adjusted changes arrive as many American households confront affordability pressures linked to rising costs for housing, groceries, gasoline, and other essentials.

President Donald Trump’s “big beautiful bill” previously raised the estate and gift tax exemption to $15 million per individual. Absent congressional action, the exemption would have reverted to 2017 levels—approximately $5 million plus inflation adjustments—after 2025, prompting high‑net‑worth families to accelerate estate planning before the legislation was enacted.

Under current law, federal estate taxes affect only a small numberুন of families. For 2026, an estimated 6,890 federal estate tax returns will be filed, with roughly 3,900 of those being taxable, according to the Tax Policy Center.

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