Tax Planning
Estate & Gift Tax Exemption Jumps to $15 Million in 2026: What That Means for You
The One, Big, Beautiful Bill increases the federal estate and gift tax exemption to $15 million for 2026—potential strategies to keep in mind before the end of the year.
By NomadicTax Research Team • 5-8 min read • March 20, 2026
## What’s the New Exemption Amount?
Under the One, Big, Beautiful Bill (OBBB), the **basic exclusion amount** for federal estate and gift tax — that’s how much you can transfer before paying gift or estate tax — **increased to $15,000,000** for calendar year **2026**. That’s up from approximately $13,990,000 in 2025. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
## Strategies to Use the Increase This Year
- **Make larger lifetime gifts now:** Because the exemption is expected to remain indexed, but future legislative change might reduce it or freeze it, it's an opportunity to shift assets while the exemption is high.
- **Use annual gift exclusions** in combination:** Annual exclusion per donee remains (currently $19,000). You can give up to this amount each year without counting against your lifetime exemption. Combine with lifetime gifts for larger asset transfers. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- **Revisit estate planning documents:** Trusts, wills, and gifting trusts may have threshold limits embedded. With the new exemption, you might simplify or remove some trust structures that were designed to avoid tax in past years.
## Example Scenarios
- **Couple transferring property worth $12M to children:** In 2026, full transfer is under exemption threshold—no federal gift tax due. Previously in 2025, such transfer “used up” much more of lifetime exemption.
- **Estate planning for a single individual:** If assets exceed $15M and you expect value to increase, you can use the exemption to pass on that amount estate-tax-free.
## Caveats & What to Watch For
- **Gift vs. Estate Tax:** Any gifts above the annual exclusion count against your lifetime exemption. Keep proper records for gift tax filings (Form 709).
- **State rules differ:** Some states have separate estate or inheritance taxes with lower exemption thresholds; state-level planning still necessary.
- **Potential sunset or change:** Laws can change. If you're relying heavily on the $15M exemption, monitor legislative actions for sunset clauses, freezes, or tax rate changes.
## Bottom Line
The 2026 increase to $15 million in estate & gift tax exemption is a major planning opportunity. Whether you're structuring your estate, making large gifts, or saving on state-level taxes, timing these moves while the exemption is high may yield significant benefits.