The amounts below are the estate tax exclusion amounts as provided by the IRS. Unless Congress takes action, in 2026, the exclusion amount will revert to the pre-2018 level ($5,490,000, adjusted for inflation) per deceased person. You can, however, use your exemption now. On November 26, 2019, the IRS clarified that individuals taking advantage of the increased gift tax exclusion amount in effect from 2018 to 2025 will not be adversely impacted after 2025 when the exclusion amount is scheduled to drop to pre-2018 levels. The IRS formally made this clarification in final regulations released that day. The regulations implement changes made by the Tax Cuts and Jobs Act (TCJA), tax reform legislation enacted in December 2017. For more information, see the related Tax Reform page.
| Year of Death | Basic Exclusion Amount |
|---|---|
| 2011 | $5,000,000 |
| 2012 | $5,120,000 |
| 2013 | $5,250,000 |
| 2014 | $5,340,000 |
| 2015 | $5,430,000 |
| 2016 | $5,450,000 |
| 2017 | $5,490,000 |
| 2018 | $11,180,000 |
| 2019 | $11,400,000 |
| 2020 | $11,580,000 |
| 2021 | $11,700,000 |
| 2022 | $12,060,000 |
| 2023 | $12,920,000 |
| 2024 | $13,610,000 |
| 2025 | $13,990,000 |
The gross estate includes all property in which the decedent had an interest (including property outside the United States). It also includes:
- Certain transfers made during the decedent’s life without an adequate and full consideration in money or money’s worth,
- Annuities,
- The includible portion of joint estates with right of survivorship (see the instructions for Schedule E),
- The includible portion of tenancies by the entirety (see the instructions for Schedule E),
- Certain life insurance proceeds (even though payable to beneficiaries other than the estate) (see the instructions for Schedule D),
- Digital assets (see the instructions for Schedule F),
- Property over which the decedent possessed a general power of appointment,
- Dower or curtesy (or statutory estate) of the surviving spouse, and
- Community property to the extent of the decedent’s interest as defined by applicable law.
An estate tax return (Form 706) must be filed if the gross estate of the decedent (who is a U.S. citizen or resident), increased by the decedent’s adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the decedent’s death, as shown in the table below. Keep in mind that the exclusion level for non-U.S. citizens is significantly lower. As of the date of this post, the maximum estate tax (unless the exclusion amount eliminates the tax) is 40% for estates valued in excess of $1,000,000. See Part 2—Tax Computation, in Instructions for Form 706.
Portability
Beginning January 1, 2011, if one spouse does not use his or her entire exclusion amount, the surviving spouse can use it. In order to elect portability of the decedent’s unused exclusion amount (deceased spousal unused exclusion (DSUE) amount) for the benefit of the surviving spouse, the estate’s representative must file an estate tax return (Form 706) and the return must be filed timely. The due date of the estate tax return is nine months after the decedent’s date of death, however, the estate’s representative may request an extension of time to file the return for up to six months. An automatic six month extension of time to file the return is available to all estates, including those filing solely to elect portability, by filing Form 4768 on or before the due date of the estate tax return.
Annual Gift Tax Exclusion Amount
| Year of Gift | Annual Exclusion per Donee |
|---|---|
| 2011 through 2012 | $13,000 |
| 2013 through 2017 | $14,000 |
| 2018 through 2021 | $15,000 |
| 2022 | $16,000 |
| 2023 | $17,000 |
| 2024 | $18,000 |
| 2025 | $19,000 |
