2025 Federal Estate Tax Changes

New permanent changes under the One Big Beautiful Bill Act

2025: $13.99M Individual Exemption

2026: $15M New Individual Exemption

2026: $30M New Couple Exemption

$19,000 Annual Gift Exclusion

Federal Estate Tax Rates

$0 - $10,00018%

$10,001 - $20,00020%

$20,001 - $40,00022%

$40,001 - $60,00024%

$60,001 - $80,00026%

$80,001 - $100,00028%

$100,001 - $150,00030%

$150,001 - $250,00032%

$250,001 - $500,00034%

$500,001 - $750,00037%

$750,001 - $1,000,00039%

Over $1,000,00040%

Note: Tax rates apply only to the amount above the exemption threshold ($13.99M in 2025, $15M starting 2026 for individuals or $30M for couples).

Legislative Changes

One Big Beautiful Bill Act Signed into Law

President Trump signed the One Big Beautiful Bill Act on July 4, 2025, making the increased estate tax exemptions permanent and raising them to $15 million per person ($30 million for couples) starting in 2026.

2025

$13.99M

2026+

$15M

*Permanent exemptions indexed for inflation

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 in 2025 or $15 million starting 2026 (individuals) or $30 million (couples)
• Permanent law: The One Big Beautiful Bill Act makes these higher exemptions permanent
• 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

Updated for the One Big Beautiful Bill Act of 2025

Consult a qualified tax professional for personalized advice