Estate Tax Exemption and Annual Gift Tax Exclusion for 2023

Official Estate and Gift Tax Limits for 2023

The Internal Revenue Service has announced new inflation-adjusted estate and gift tax limits for 2023: The estate and gift tax exemption is $12,920,000 million per individual, up from $12,060,000 in 2022. That means an individual could leave $12.92 million to heirs and pay no federal estate or gift tax, while a married couple could shield $25.84 million. This assumes no changes will be made in 2023 to the existing tax structure.

The annual gift exclusion amount for 2023 increases to $17,000 according to the IRS announcement. This is up from $16,000 in 2022.

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