2026 Estate and Gift Tax Exemption
For 2026 the federal estate and gift tax exemption jumps to $15 million per person (from $13.99 million in 2025) — made permanent by the One Big Beautiful Bill Act. A married couple can shield up to $30 million. Separately, you can give $19,000 per person each year with no gift-tax paperwork.
Below are the 2026 and 2025 figures, how the exemption works, and the annual gift exclusion.
2026 estate, gift and GST figures
The estate, lifetime gift and generation-skipping transfer (GST) exemptions are unified at the same amount, taxed at a top rate of 40% above it.
| Item | 2026 | 2025 |
|---|---|---|
| Estate & lifetime gift exemption (per person) | $15,000,000 | $13,990,000 |
| Married couple (combined) | $30,000,000 | $27,980,000 |
| GST exemption | $15,000,000 | $13,990,000 |
| Annual gift exclusion (per recipient) | $19,000 | $19,000 |
| Top tax rate | 40% | 40% |
How the exemption works
Only the amount above the exemption is taxed, at up to 40% — so the vast majority of estates owe nothing. A $20 million estate in 2026, for example, would be taxed on $5 million ($20M − $15M), for roughly $2 million of tax. Gifts above the annual exclusion reduce your lifetime exemption rather than triggering immediate tax.
Spouses can also use portability to pass an unused exemption to the survivor. Note that several states levy their own estate or inheritance taxes with far lower thresholds. Model a taxable estate with the estate tax planning calculator.
The annual gift exclusion
You can give up to $19,000 to any number of people each year (2026, unchanged from 2025) without filing a gift-tax return or touching your lifetime exemption. A married couple can "split" gifts to give $38,000 per recipient. Direct payments of someone's tuition or medical bills don't count against either limit.
Step-up in basis and gift returns
Assets passed at death get a step-up in basis — the cost basis resets to market value on the date of death, erasing the unrealized capital gain for heirs. Lifetime gifts, by contrast, carry the giver's original basis. That gap is central to deciding whether to gift now or leave assets at death.
Give any one person more than the $19,000 annual exclusion in a year and you must file a gift tax return (Form 709) — though no tax is actually due until your cumulative gifts exhaust the $15 million lifetime exemption.
What is the 2026 estate tax exemption?
For 2026 the federal estate and gift tax exemption is $15 million per person, up from $13.99 million in 2025, and made permanent by the One Big Beautiful Bill Act. A married couple can shield up to $30 million.
How much can I gift tax-free in 2026?
You can give up to $19,000 per recipient in 2026 with no gift-tax return and no effect on your lifetime exemption. Larger gifts simply reduce your $15 million lifetime exemption rather than triggering immediate tax.
What is the estate tax rate?
The federal estate tax rate reaches 40% on amounts above the exemption. Because the exemption is $15 million per person in 2026, the vast majority of estates owe no federal estate tax at all.
Do I owe tax on a gift I receive?
No. Gift tax, when it applies, is the giver’s responsibility, not the recipient’s — and even then only after the giver exhausts the $19,000 annual exclusion and the $15 million lifetime exemption.
What is the generation-skipping transfer tax?
The GST tax applies to transfers that skip a generation, such as gifts to grandchildren. It has its own $15 million exemption for 2026 and a 40% rate on amounts above it, on top of regular gift or estate tax.
What is step-up in basis?
Inherited assets reset their cost basis to market value on the owner’s date of death, erasing the unrealized capital gain. Heirs who sell soon after often owe little or no capital gains tax — a key advantage over lifetime gifts, which keep the original basis.
Do I have to file a gift tax return?
Yes, if you give any one person more than the $19,000 annual exclusion in a year, you file Form 709. No gift tax is actually due until your cumulative gifts exceed the $15 million lifetime exemption.