What is the estate and gift tax exemption for 2026?

The federal estate and gift tax exemption for 2026 is $15,000,000 per individual, or up to $30,000,000 for a married couple with proper planning, under the One Big Beautiful Bill Act. This unified exemption applies to combined lifetime gifts and transfers at death, with a 40% tax rate on amounts exceeding it.

Alongside the lifetime exemption, the annual gift tax exclusion for 2026 is $19,000 per recipient ($38,000 for married couples using gift-splitting). Gifts under this annual threshold don't count against your lifetime exemption at all. Gifts above $19,000 per recipient in a given year reduce your available $15,000,000 lifetime exemption dollar for dollar, which is why accurate valuation matters: overstating or understating a gift's fair market value directly affects how much of your exemption gets used. A separate rule allows up to $194,000 to a non-citizen spouse without triggering gift tax.

Because these exemption amounts are scheduled figures tied to current law, and because gifts of real estate, business interests, or other non-cash property must be reported at fair market value on Form 709, a qualified appraisal is often the only way to substantiate the number the IRS will accept. Our gift tax appraisal services prepare USPAP-compliant valuations designed to hold up under IRS review, whether you're gifting a family business interest, real property, or a fractional ownership stake.

If you're weighing how much to gift this year, it's worth reading how gifts are valued for tax purposes and whether an appraisal is required for your gift tax return.