What are the 2026 gift tax annual exclusion and estate tax exemption?
For 2026 the gift tax annual exclusion is $19,000 per recipient, the same as 2025. The basic exclusion amount for estates of people who die in 2026 is $15,000,000, up from $13,990,000 for 2025, and the 2025 tax law set that $15,000,000 in the statute with inflation indexing after 2026.
Sources checked . Current through .
The 2026 numbers
| Item | 2025 | 2026 |
|---|---|---|
| Annual gift exclusion, per recipient | $19,000 | $19,000 |
| Annual exclusion for gifts to a spouse who isn't a US citizen | $190,000 | $194,000 |
| Basic exclusion amount (estate and gift) | $13,990,000 | $15,000,000 |
| GST exemption | $13,990,000 | $15,000,000 |
Annual exclusion
The first $19,000 of gifts to any one person in 2026 isn't a taxable gift (IRC §2503). The exclusion doesn't cover gifts of future interests in property. For a spouse who isn't a US citizen, the 2026 figure is $194,000.
Basic exclusion amount
The One Big Beautiful Bill Act wrote $15,000,000 into IRC §2010(c)(3) as the basic exclusion amount. It is indexed for inflation for people who die in calendar years after 2026. The applicable exclusion amount is the basic exclusion plus, for a surviving spouse, any deceased spousal unused exclusion (DSUE) amount (IRC §2010(c)(2)).
Generation-skipping transfer tax
The GST exemption equals the basic exclusion amount for the same calendar year (IRC §2631(c)), so it is also $15,000,000 for 2026.
Sources
- Rev. Proc. 2025-32, §4.42: 2026 inflation adjustments (2025-45 IRB)
- IRC §2010(c)(3): Basic exclusion amount
- IR-2025-103: IRS releases tax inflation adjustments for tax year 2026 (October 9, 2025)
- Rev. Proc. 2024-40: 2025 inflation adjustments (2024-45 IRB)
- IRC §2631(c): GST exemption amount
Not tax advice. Check the sources against your client's facts before relying on this.