The 2028 exclusion is not final. Applying 3% annually to the confirmed $15,000,000 2026 baseline and rounding to $10,000 gives a $15,910,000 scenario. The annual gift exclusion is a separate $20,000 scenario.
Filing in 2028? That generally concerns 2027 income. This 2028 tax-year reference generally concerns returns filed in 2029.
Two exclusions with different purposes
| Item | 2026 confirmed baseline | 2028 illustrative scenario |
|---|---|---|
| Estate / gift lifetime exclusion | $15,000,000 | ~$15,910,000 |
| Annual gift exclusion | $19,000 | ~$20,000 |
The annual exclusion generally applies per donor, per recipient, per calendar year to qualifying present-interest gifts. The lifetime exclusion is shared by taxable gifts and the taxable estate. Giving above the annual exclusion can create a reporting obligation without producing immediate gift tax, depending on remaining lifetime exclusion.
Worked example: a gift above the annual exclusion
Suppose one donor makes a $50,000 qualifying cash gift to one recipient in 2028. Under the $20,000 annual-exclusion scenario, $30,000 exceeds the annual amount. Assuming no other exclusion applies, that excess would generally be reported and would use lifetime exclusion before gift tax becomes payable.
This example assumes one donor, one recipient and no previous gifts during the year. A married couple considering gift splitting must follow the consent and return rules. Tuition paid directly to a qualifying school and medical expenses paid directly to the provider can have different treatment from giving cash to the beneficiary.
A couple’s exclusion is not automatically doubled
Twice the illustrative per-person amount is $31,820,000, but that arithmetic is not a guarantee of a surviving spouse’s exclusion. Portability of a deceased spouse’s unused exclusion generally requires an estate-tax return election and depends on the applicable rules. Prior taxable gifts reduce what remains available.
Generation-skipping transfer tax has its own exemption and allocation rules; portability does not work the same way. State estate or inheritance taxes can apply at much lower amounts than the federal exclusion. A federal planning page cannot establish a household’s state tax exposure or trust allocation strategy.
Review actual balances and enacted law
The current federal framework established a $15 million 2026 basic exclusion with subsequent inflation adjustments. This page models that framework; it does not assume a new legislative sunset or promise that future Congresses will leave it unchanged. The IRS release for 2028 controls the final indexed amount.
Before an irrevocable gift, reconcile earlier taxable gifts, ownership, valuation, basis and liquidity with qualified advisers. A transfer can save estate tax while creating other income-tax consequences for recipients. The scenario is most useful for identifying which records and decisions deserve review, not for treating the projected ceiling as an available balance.
Method, assumptions and release timing
The 3% annual assumption is an illustrative planning shortcut, not an inflation forecast or a confidence interval. It compounds directly from the latest confirmed baseline, then rounds once. Official indexing uses statutory base amounts, prescribed index windows and rounding rules; final agency figures can differ. Lifetime exclusion rounds to $10,000 and annual gift exclusion to $1,000. Prior taxable gifts and portability are not assumed away.
IRS 2028 inflation adjustments are expected in October–November 2027; timing is based on the usual annual cycle, not an announced release date.
Primary sources: 2026 tax baselines — Rev. Proc. 2025-32 · Estate tax return instructions and portability
Frequently asked questions
Does a gift above the annual exclusion automatically create tax?
Not necessarily. It can require a gift-tax return and use part of the donor’s remaining lifetime exclusion. Prior gifts and the type of transfer matter.
Can spouses always use twice the exclusion?
No. Ownership, prior gifts and portability requirements matter. A simple doubled amount is not a determination of the survivor’s available exclusion.
Does the federal exclusion remove state estate tax?
No. State estate and inheritance taxes have separate rules and may apply at lower amounts.
Can I use these estimates to file or set a contribution limit?
No. These tables illustrate planning assumptions. Use the final agency publication and the rules for the applicable year before filing, funding an account or changing payroll. A linked calculator may use a different year.
Explore a related calculator
Income tax planning calculator. Check the calculator’s supported year and assumptions; it may use a different year from this planning reference.