2027 Federal Estate Tax Exemption
What is already settled for 2027, what the IRS has not published yet, and how much federal tax moves across the plausible range of indexed exemption amounts.
Short answer: the $15,000,000 per-person exemption ($30,000,000 married with portability) is confirmed for 2026 and permanent under OBBBA. The 2027 figure is not published yet — 2027 is the first inflation-indexed year, and the IRS sets the indexed amount in its annual revenue procedure, historically released in the autumn of the preceding year. Published third-party planning estimates run roughly $15,300,000 to $15,500,000 per person. Retrieved 2026-09-24.
2027 line items: settled vs. pending
Rows marked pending are indexed amounts the IRS has not yet released. Nothing in this table is projected as if it were official.
| Item | 2026 (confirmed) | 2027 | Note |
|---|---|---|---|
| Basic exclusion amount (per person) | $15,000,000 | Not yet published | OBBBA (Pub. L. 119-21) set $15,000,000 for 2026 and made it permanent. 2027 is the first year the amount is adjusted for inflation, using 2025 as the base year. |
| Married couple with portability (DSUE) | $30,000,000 | Not yet published | Twice the basic exclusion when a timely portability election is made on the deceased spouse's return. Indexes with the basic exclusion amount. |
| GST tax exemption | $15,000,000 | Not yet published | Matches the estate and gift basic exclusion under OBBBA. Unlike the estate exemption, the GST exemption is NOT portable between spouses. |
| Annual gift tax exclusion | $19,000 per recipient | Not yet published | Indexed separately under IRC § 2503(b) and announced in the same autumn revenue procedure. Third-party planning commentary expects it to hold at $19,000, but that is an expectation, not a released figure. |
| Gift to a non-citizen spouse | $194,000 | Not yet published | The § 2523(i) annual exclusion for gifts to a non-U.S.-citizen spouse, indexed annually. |
| Top federal estate tax rate | 40% | 40% ✓ | Fixed by statute (IRC § 2001(c)) and not indexed. OBBBA did not change the rate, and no rate change is scheduled for 2027. |
| Marital deduction (U.S.-citizen spouse) | Unlimited | Unlimited ✓ | Unlimited for transfers to a U.S.-citizen spouse. Not indexed and not affected by OBBBA. |
| Portability of a deceased spouse's unused exclusion | Available | Available ✓ | Retained by OBBBA. Requires a timely estate tax return electing DSUE — Rev. Proc. 2022-32 provides relief for late elections. |
How the 2027 index works
OBBBA permanently set the basic exclusion at $15,000,000 per person for 2026 and made it inflation-indexed beginning in 2027, using 2025 as the base year. The IRS applies the statutory cost-of-living adjustment and publishes the resulting figure in its annual inflation-adjustment revenue procedure — the same release that sets the annual gift exclusion, the § 2523(i) non-citizen-spouse amount, and the Form 706 filing threshold.
The practical consequence is that the 2027 filing threshold, the annual gift exclusion, and the generation-skipping transfer exemption all move together in that single release. Planning done before it lands should be stress-tested against a range rather than a point estimate.
Federal tax at 2026 law vs. the estimated 2027 range
Federal estate tax below is computed with the IRC § 2001 graduated brackets applied to the amount above the exemption, for a single decedent with no prior taxable gifts and no portability. The $15,000,000 column uses the confirmed 2026 figure; the remaining columns use third-party planning estimates and are illustrative only.
| Gross estate | 2026 law — $15,000,000 | Estimate low — $15,300,000 * | Estimate midpoint — $15,400,000 * | Estimate high — $15,500,000 * |
|---|---|---|---|---|
| $16,000,000 | $345,800 | $229,800 | $192,800 | $155,800 |
| $18,000,000 | $1,145,800 | $1,025,800 | $985,800 | $945,800 |
| $20,000,000 | $1,945,800 | $1,825,800 | $1,785,800 | $1,745,800 |
| $25,000,000 | $3,945,800 | $3,825,800 | $3,785,800 | $3,745,800 |
| $30,000,000 | $5,945,800 | $5,825,800 | $5,785,800 | $5,745,800 |
* Estimate columns use the published third-party range ($15,300,000–$15,500,000), not an IRS figure. These are third-party planning estimates, not IRS figures. The IRS confirms the 2027 basic exclusion amount in its annual inflation-adjustment revenue procedure, historically released in the autumn of the preceding year. Each $100,000 of additional exemption is worth up to $40,000 in federal tax at the top rate.
Planning implications
- There is no cliff to race. The exemption is permanent and rising with inflation rather than scheduled to drop, so the old “use it or lose it” pressure before a sunset no longer applies.
- State taxes usually bind first. Roughly a dozen states and the District of Columbia levy their own estate or inheritance tax, several with thresholds near $1,000,000–$2,000,000 — far below the federal line. Check the state estate tax page before optimizing for the federal number.
- Portability is still an election, not an automatic right. A surviving spouse must file a timely Form 706 to capture a deceased spouse's unused exclusion; Rev. Proc. 2022-32 offers relief for late elections.
- The GST exemption does not port. It matches the estate exclusion in amount but cannot be transferred to a surviving spouse, so generation-skipping structures need their own allocation.
- Gifting capacity is indexed too. The annual gift exclusion ($19,000 per recipient in 2026; $194,000 for a non-citizen spouse) moves in the same autumn release as the basic exclusion.
Sources
- IRC § 2010(c)(3)(A) — basic exclusion amount; OBBBA (Pub. L. 119-21, July 2025)
- IRS — Estate Tax (indexed amounts published each year by revenue procedure)
- IRS Form 706 and Instructions (portability / DSUE election)
- Third-party planning estimate (not an IRS figure): Insight Wealth Strategies — The One Big Beautiful Bill Act: 2027 Tax Planning Priorities
Last updated: 2026-09-24.
All figures retrieved 2026-09-24. This page is updated when the IRS publishes the 2027 inflation adjustments.
Frequently asked questions
Model the numbers yourself
Run the 2026 confirmed figures through the calculators, or check the state-level thresholds that usually bind first.