The 2027 Gift and Estate Tax Numbers Are Coming. Here's What Estate Planners Expect

Every fall, wealthy families and their advisors wait for the same announcement: the IRS's inflation adjustments for the coming year. Those numbers decide how much you can give away tax-free, and how much you can pass on at death before federal estate tax applies.

The 2027 figures are not out yet. But the outlines are already clear.

Where things stand today

For 2026, the lifetime federal estate and gift tax exemption is $15 million per person, or $30 million for a married couple, following the tax law passed in 2025. Kiplinger's tax editor noted on Oct. 9 that the 2027 figure has not yet been officially released.

The annual gift exclusion, the amount you can give any one person each year without using up any of your lifetime exemption or filing a gift tax return, is $19,000 in 2026.

What's projected for 2027

Tax analysts project the annual gift exclusion will rise to $20,000 per recipient in 2027, according to a Sept. 16 analysis by CPA Paul Neiffer. A married couple could then give $40,000 to each child, grandchild or anyone else, every year, without touching their lifetime exemption.

The official numbers may be a little later than usual. Neiffer noted that the inflation data the IRS relies on has an extra wrinkle this year because no official October 2025 figure was released during the government shutdown. The IRS typically announces the coming year's limits in late October or early November, according to Mercer.

Very few estates actually pay

With an exemption this high, the federal estate tax affects a tiny share of families. The Tax Policy Center projects about 6,890 federal estate tax returns for people who die in 2026, and only about 3,900 of them will be taxable, according to Kiplinger.

Most heirs also benefit from a "stepped-up basis." Inherited property is generally valued at its market price on the date of death, which can erase decades of capital gains for tax purposes.

How the exemption got so high

The $15 million exemption traces back to the tax law passed in 2025, which made permanent an increased estate and gift tax exemption that had been set to expire after 2025 under the 2017 Tax Cuts and Jobs Act. Without that extension, the exemption would have reverted to roughly half its 2025 level, a cliff that worried many estate planners for years. Because the current exemption is indexed for inflation, it's expected to keep rising gradually each year rather than jump sharply, which is why the 2027 figure is widely expected to be only modestly higher than 2026's.

What it means for you

A high exemption does not mean you can skip estate planning. State estate and inheritance taxes often start at far lower amounts, and a good plan is as much about control and family harmony as taxes. Consider:

• Using the annual exclusion every year, since unused amounts do not roll over.
• Paying tuition or medical bills directly to the school or provider, which does not count against the annual limit.
• Reviewing beneficiary designations on retirement accounts and life insurance, which override your will.
• Checking whether your state has its own estate or inheritance tax.
• Weighing whether to hold appreciated assets until death to keep the stepped-up basis.

The bottom line

The 2027 numbers should arrive within weeks, and the annual gift exclusion is likely heading to $20,000. For families with significant assets, the end of the year is a natural time to make gifts, update documents and talk with an estate attorney about the long-term plan.

Sources: Kiplinger (Oct. 9, 2026), Farm CPA Report, Paul Neiffer (Sept. 16, 2026), IRS Newsroom (Oct. 9, 2025), Mercer (Sept. 14, 2026)