2025 Federal Estate Tax

Essential information for estate planning

$13.99M Individual Exemption

$27.98M Married Couple Exemption

40% Maximum Tax Rate

$19,000 Annual Gift Exclusion

Federal Estate Tax Rates

$0 - $10,000 18%

$10,001 - $20,000 20%

$20,001 - $40,000 22%

$40,001 - $60,000 24%

$60,001 - $80,000 26%

$80,001 - $100,000 28%

$100,001 - $150,000 30%

$150,001 - $250,000 32%

$250,001 - $500,000 34%

$500,001 - $750,000 37%

$750,001 - $1,000,000 39%

Over $1,000,000 40%

Note: Tax rates apply only to the amount above the $13.99M exemption threshold for individuals or $27.98M for couples.

Important 2026 Changes

Estate Tax Sunset Warning

Without Congressional action, the exemption will drop to approximately $7 million per person in 2026 when the Tax Cuts and Jobs Act provisions expire. The current reconciliation bill would increase the exemption to $15 million per person adjusted for inflation.

2025

$13.99M

2026*

~$7M or $15M

*Projected amount if current law expires or current reconciliation bill is passed in the Senate

Annual Gift Tax Exclusion

2025 Gift Limits

$19,000 per recipient - You can gift this amount to unlimited recipients without using your lifetime exemption

$38,000 for married couples - When spouses combine their annual exclusions

Unlimited spousal gifts - Between U.S. citizen spouses

Key Facts

• Who pays: Only estates worth more than $13.99 million (individual) or $27.98 million (couples)
• Portability: Surviving spouses can use deceased spouse's unused exemption
• Filing requirement: Form 706 must be filed for estates exceeding the threshold
• State taxes: 12 states + DC also impose estate taxes with varying exemptions
• Planning opportunity: 2025 may be the last year for higher exemption amounts

Information current as of 2025 tax year

Consult a qualified tax professional for personalized advice