2027 Estate Tax Exemption (Projected)
| Category | 2027 Projected | 2026 Confirmed |
|---|---|---|
| Individual exemption | ~$14,400,000 | $13,990,000 |
| Married couple (with portability) | ~$28,800,000 | $27,980,000 |
| Top marginal tax rate | 40% | 40% |
Portability allows a surviving spouse to use the deceased spouse's unused exemption amount by filing IRS Form 706 (estate tax return), even if no estate tax is owed. This effectively doubles the exemption for married couples without requiring a bypass trust.
Annual Gift Tax Exclusion (Projected)
The annual gift exclusion adjusts in $1,000 increments. Based on the 2026 confirmed level of $19,000 and projected inflation, the 2027 exclusion may remain at $19,000 or increase to $20,000 depending on the exact CPI-U adjustment.
| Scenario | 2027 Projected | 2026 Confirmed |
|---|---|---|
| Individual gift per recipient | ~$19,000–$20,000 | $19,000 |
| Married couple (gift-splitting) per recipient | ~$38,000–$40,000 | $38,000 |
| Gifts to non-citizen spouse | ~$196,000 | $190,000 |
The annual gift tax exclusion lets you give up to the limit to any number of recipients each year without filing a gift tax return or using any of your lifetime exemption. Married couples who elect gift-splitting on IRS Form 709 can give double the annual amount per recipient.
Lifetime Gift & GST Tax Exemption (Projected)
| Tax Type | 2027 Projected Exemption | 2026 Confirmed | Tax Rate |
|---|---|---|---|
| Estate tax | ~$14,400,000 | $13,990,000 | 40% |
| Gift tax (lifetime, unified) | ~$14,400,000 | $13,990,000 | 40% |
| Generation-skipping transfer (GST) tax | ~$14,400,000 | $13,990,000 | 40% |
The elevated estate tax exemption amounts were originally established by the Tax Cuts and Jobs Act (TCJA) of 2017 and were extended in 2025. These projections assume the extended TCJA levels remain in effect for 2027 and beyond. Consult a qualified estate planning attorney or tax advisor regarding the current legislative status and how it affects your estate plan.
The anti-clawback rule (Treasury Reg. 20.2010-1) remains in effect: gifts made under the higher exemption will not be retroactively penalized if the exemption is later reduced.
Estate Planning Strategies
Annual Exclusion Gifts: Maximize annual exclusion gifts each year to reduce your taxable estate without touching your lifetime exemption. A married couple with multiple children and grandchildren can transfer substantial amounts annually completely gift-tax-free.
Irrevocable Trusts: Assets placed in irrevocable trusts (such as ILITs, GRATs, SLATs, or dynasty trusts) are generally removed from your taxable estate. These must be established and funded while you are alive.
Portability Election: Ensure a Form 706 is filed at the first spouse's death, even if no tax is owed, to preserve the unused exemption for the surviving spouse.
Plan your financial future with our free Budget Planner
Open Budget Planner →See Confirmed 2026 Limits: For official IRS-published figures, see our 2026 Estate & Gift Tax page.
Frequently Asked Questions
What is the projected 2027 federal estate tax exemption?
The 2027 federal estate tax exemption is projected at approximately $14,400,000 per individual, assuming the TCJA provisions remain extended. Married couples can effectively shield approximately $28,800,000 through portability. The official amount will be announced by the IRS in late 2026.
How much can I gift tax-free in 2027?
The projected 2027 annual gift tax exclusion is approximately $19,000–$20,000 per recipient per year. Married couples who elect gift-splitting can give double that amount. There is no limit to the number of recipients. Gifts above the annual exclusion count against your projected ~$14,400,000 lifetime exemption.
What is the projected 2027 generation-skipping transfer (GST) tax exemption?
The 2027 GST tax exemption is projected at approximately $14,400,000, matching the projected estate tax exemption. The GST tax rate remains a flat 40%, applied to transfers that skip a generation (e.g., grandparent to grandchild).
Can I appeal or adjust my estate plan based on these projections?
These are estimates only. The IRS typically announces the official inflation-adjusted figures in late October or November of the prior year. Consult a qualified estate planning attorney for advice tailored to your situation, especially given ongoing legislative changes.