The Internal Revenue Service increased the federal estate and gift tax exemption to $15.48 million per person for 2027, up from $15 million in 2026. The exemption applies to tax-free transfers during life and at death.
The IRS also adjusted federal income tax brackets, capital gains tax brackets, and earned income tax credit eligibility for 2027 as part of its annual inflation adjustments.
President Donald Trump's legislation raised the estate and gift tax exemption to $15 million per person. Without that change, the exemption would have reverted to 2017 levels of $5 million plus an inflation adjustment after 2025.
For 2026, the Tax Policy Center estimates that about 6,890 families will file federal estate tax returns, with roughly 3,900 expected to be taxable.