Estate tax exemption for 2026 is $15 million: Here’s what families need to know about the IRS rules and $19,000 gift limit

The federal estate and gift tax basic exclusion amount for 2026 is $15 million, giving families a bigger number to consider when planning for the transfer of assets during life or at death.

The Internal Revenue Service says the basic exclusion amount for decedents dying in 2026 is $15 million, compared with $13.99 million for decedents dying in 2025. For calendar year 2026, the $15 million figure applies for estate and gift tax purposes.

2026 Estate Tax Basic Exclusion Amount: $15 Million

The federal basic exclusion amount is $15 million in 2026. It is used in determining the portion of an estate that may be excluded from federal estate tax, subject to the applicable rules.


The $15 million basic exclusion amount also applies to gifts made in calendar year 2026 for federal gift tax purposes. The IRS also notes that the generation-skipping transfer tax exemption is $15 million in 2026.

That increase follows legislation signed into law in July 2025 that changed the basic exclusion amount, effective in 2026.

2026 Gift Tax Exclusion: $19,000 Per Recipient

Don't confuse the $15 million basic exclusion amount with the annual gift tax exclusion.

If the gift is eligible for the annual exclusion, a donor can give each recipient $19,000 in 2026 without using any of the lifetime basic exclusion. The IRS says the annual exclusion will remain at $19,000 in 2026, the same as in 2025.

The annual exclusion applies to each recipient. For example, if someone gives each of their children $19,000 in 2026, they generally can take advantage of the annual exclusion for each qualifying gift.

What the $15 Million Exclusion Means for Estate Planning

The higher basic exclusion amount is an important number for families as they plan their estate and gift plans for 2026.

Key Wealth notes that the lifetime exemption is $15 million in 2026 and the annual gift exclusion is $19,000 per recipient.

That $15 million figure isn't meant to imply that any family can simply move $15 million around without considering other tax rules. Estate and gift tax outcomes can differ depending on the nature of the transfer, previous taxable gifts and other factors.

Families May Wish to Review Their Estate Plans

The basic exclusion amount is now set at $15 million for 2026. For families with substantial assets, it may be a good time to review estate-planning documents and understand how the current exclusion would apply to their circumstances.

The IRS 2026 Form 706 instructions confirm that the basic exclusion amount is $15 million for decedents dying in 2026.

The annual gift tax exclusion is a separate provision. The amount is $19,000 per recipient for 2026.

If you are contemplating large gifts or other estate-planning techniques, you need to understand the particular federal tax rules that apply to your situation, including any prior taxable gifts. A qualified tax or estate-planning professional can help determine how the 2026 rules may apply to an individual situation.