IRS Announces 2027 Estate and Gift Tax Exemptions

The IRS recently announced the updated federal estate and gift tax exemptions for 2027, and there's good news for individuals and families concerned about estate taxes.

The One Big Beautiful Bill Act, signed into law in 2025, established a $15 million federal estate and gift tax exemption per person for 2026, with annual adjustments for inflation beginning in 2027.

For 2027, the federal estate and gift tax exemption increases to $15,480,000 per person, up from $15,000,000 in 2026.

For married couples, that means a potential combined exemption of $30,960,000. To take full advantage of both spouses' exemptions, however, proper planning may be necessary, including making a timely portability election following the death of the first spouse.

The IRS also announced an increase in the annual gift tax exclusion, from $19,000 in 2026 to $20,000 per recipient in 2027.

This means an individual can give up to $20,000 to as many people as desired during 2027 without incurring federal gift tax or having to file a federal gift tax return for those gifts.

Married couples can generally give up to $40,000 per recipient without using any of their lifetime exemptions. However, depending on how those gifts are made, a federal gift tax return (IRS Form 709) may still be required, even though no gift tax is due.

In addition to these changes, the IRS announced other inflation adjustments for 2027, including changes to standard deductions, income tax brackets, adoption credits, and more. You can read the full IRS announcement here.

So, what does this mean for your estate plan?

The good news is that if you weren't concerned about federal estate taxes in 2026, you almost certainly won't need to be concerned about them in 2027, either.

But here's something worth remembering: Estate planning isn't just about estate taxes.

In fact, the vast majority of estates aren't subject to federal estate taxes at all.

Good estate planning is about making sure your wishes are known and followed, protecting yourself and your loved ones, and making things as easy as possible for those you leave behind. That includes having the right people in place to make decisions if you become incapacitated and ensuring your estate can be settled as efficiently as possible after your death.

Whether your estate is worth $500,000 or $15 million, having a properly designed estate plan matters.

At Peach State Wills & Trusts, we help Georgia families develop estate plans that reflect their goals and protect the people they care about.

Let us know how we can help.