IRS Releases 2026 Inflation-Adjusted Estate and Gift Tax Amounts

The IRS has announced the 2026 inflation adjustments for many tax provisions, including exemptions for estate, gift and generation-skipping transfer taxes and the annual exclusion amount for gifts.

The federal lifetime gift tax exemption has increased from $13,990,000 in 2025 to $15,000,000 in 2026. Also, the generation skipping transfer tax exemption has also increased and therefore increased from $13,990,000 in 2025 to $15,000,000 in 2026.

The gift tax annual exclusion amount stayed at $19,000 for 2026. The amount did not increase from $19,000 in 2025. This is the amount that each person can give to another person without using any gift and estate tax exemption. Payments of tuition to schools and medical expenses to health care providers do not count against either the $19,000 annual gift tax exclusion or the $15,000,000 gift and estate tax exemption.