ArticleEach year, the IRS updates tax brackets and related thresholds to reflect inflation. Under the One Big Beautiful Bill Act, the estate tax basic exclusion amount will increase to $15,000,000 in 2026, with inflation indexing beginning in 2027. Based on Bureau of Labor Statistics data through August 2025, analysts anticipate the following adjustments to key estate planning figures for 2026.
| 2026 (est.) | 2025 | Increase | |
| Estate tax basic exclusion amount* | $15,000,000 | $13,990,000 | $1,010,000 |
| Annual exclusion for gifts | $19,000 | $19,000 | $0 |
| Beginning of highest marginal income tax bracket for trusts/estates | $16,250 | $15,650 | $600 |
International estate planning estimates are projected as follows:
| 2026 (est.) | 2025 | Increase | |
| Annual exclusion for gift to non-citizen spouse | $194,000 | $190,000 | $4,000 |
| Covered expatriate – annual net income tax test | $211,000 | $206,000 | $5,000 |
| Covered expatriate – gain exclusion | $910,000 | $890,000 | $20,000 |
| 6039F large gift threshold (for 3520 reporting) | $20,573 | $20,116 | $457 |
The finalized tax rate updates for 2026 are expected to be released by the IRS in late October or early November. A key insight from the current projections is that individuals who have already used up their existing estate tax exemption will likely be able to transfer an additional $1,010,000 — or $2,020,000 for married couples — free of federal transfer taxes.
The full projected report from Bloomberg Tax can be found here: 2026 Projected U.S. Tax Rates Special Report – Bloomberg Tax
*As noted above, this number is statutory and is not an estimate.