For 2026: the federal estate, gift and generation-skipping transfer tax exemption is $15,000,000 per person; the annual gift exclusion is $19,000 per recipient ($38,000 for a married couple splitting gifts); gifts to a noncitizen spouse are excluded up to $194,000; and the top rate is 40%. The 2027 figures will be inflation-adjusted and published by the IRS in a revenue procedure, typically in October or November. As of October 21, 2026, the IRS has not released them; we will update this page when it does.
Wondering if you still need estate life insurance? See who still needs it under the $15 million exemption →
We are licensed insurance brokers, not CPAs or attorneys. Treat the tax and legal points on this page as general education, and confirm them with your own CPA or attorney before acting.
On this page
The 2026 numbers
| Item | 2026 | Notes |
|---|---|---|
| Basic exclusion (estate and lifetime gift exemption) | $15,000,000 per person | Set by the One Big Beautiful Bill Act; indexed from 2027 |
| Married couple with portability | About $30,000,000 | Requires a timely portability election at the first death |
| Generation-skipping transfer (GST) exemption | $15,000,000 per person | Not portable between spouses |
| Annual gift exclusion | $19,000 per recipient | $38,000 with gift splitting; unchanged from 2025 |
| Annual exclusion for gifts to a noncitizen spouse | $194,000 | Up from $190,000 in 2025 |
| Top estate and gift tax rate | 40% | Applies to amounts above the exemption |
Sources: IRS Revenue Procedure 2025-32 and the One Big Beautiful Bill Act. The 2025 exemption was $13,990,000.
What to watch for 2027
Because the $15 million amount is indexed for inflation starting in 2027, expect a modest increase. Independent projections based on inflation data put the 2027 exemption somewhere around $15.4 million and the annual exclusion at either $19,000 or $20,000 (the annual exclusion only rises in $1,000 steps). Those are projections, not official figures. The IRS usually publishes the next year's numbers in a revenue procedure in late October or November.
Status as of October 21, 2026: not yet released. This page will be updated with the official 2027 figures the day they are published.
Portability in practice
Portability lets a surviving spouse use the unused exemption of the first spouse to die (the deceased spousal unused exclusion, or DSUE). It is not automatic:
- The executor must file a federal estate tax return (Form 706) to elect it, even if no tax is due.
- Estates not otherwise required to file can use the simplified method in Revenue Procedure 2022-32, which allows the election up to five years after the date of death.
- The DSUE amount is fixed at the first death and does not grow with inflation, and GST exemption does not port.
Those limits are one reason some couples still choose trusts or survivorship coverage even below the exemption.
Using the annual exclusion
Annual exclusion gifts do not use any lifetime exemption and do not carry over if unused. Common uses for life insurance planning:
- Funding premiums on a policy owned by an irrevocable life insurance trust, with Crummey withdrawal rights so the gifts qualify; see Crummey letters.
- Gifting to children or grandchildren who own a policy on a parent.
- Paying premiums on a policy given to a charity; see charitable giving.
Make annual exclusion gifts before December 31. Our year-end checklist has the rest of the December list.
Frequently asked questions
What is the annual gift tax exclusion for 2026?
$19,000 per recipient, the same as 2025. A married couple who elect gift splitting can give $38,000 per recipient.
Has the IRS announced the 2027 estate tax exemption?
Not as of October 21, 2026. The IRS typically publishes the next year's inflation adjustments in late October or November. Projections put the 2027 exemption around $15.4 million, but only the IRS figure counts.
Do I have to file a gift tax return for gifts over $19,000?
Generally yes. Gifts to one person above the annual exclusion in a year require Form 709, even though no tax is due until you have used your lifetime exemption. Gift splitting between spouses also requires a return.
Start your life insurance request
Tell us what the coverage is for and who it would cover. For most requests we ask for each person's date of birth and sex so Erik can prepare for the call. We do not ask health or tobacco questions in this initial request. This is a request for help, not an insurance application or a promise of coverage.
Written by Erik Moran
Erik co-owns Moran Insurance Group with Amanda Moran and handles the agency's life insurance cases, from key person and buy-sell coverage to trust-owned policies. He works alongside clients' CPAs and attorneys, who make the tax and legal calls. More about Erik.
Sources
Moran Insurance Group is a licensed insurance agency. Our brokers are not CPAs, attorneys or tax advisors, and nothing on this page is tax, legal or investment advice. Tax figures and rules reflect our understanding as of October 2026 and can change. Coverage is subject to carrier underwriting and state availability. Confirm anything tax or legal with a licensed CPA or attorney before you act on it.