Federal Estate and Gift Tax exemption amounts for 2025

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The IRS has announced the updated Federal Estate and Gift Tax exemption amounts for 2025. 

Currently, in 2024, the federal estate and gift tax exemption is $13.61 million per person, allowing a married couple to transfer up to $27.22 million free of federal estate tax. In 2025, these amounts will increase slightly to $13.99 million per person, resulting in a combined exemption of $27.98 million for a married couple. 

However, this exemption is set to sunset at the end of 2025. Unless Congress passes new legislation, the exemption will drop b in 2026. Based on conversations with legal experts, there is optimism that Congress may act to preserve the current exemption levels.

As for the annual gift tax exclusion, it is $18,000 per person in 2024 and will rise to $19,000 per person in 2025. This means individuals can gift up to $19,000—and married couples up to $38,000—per recipient annually without triggering federal gift tax.

These changes make now an excellent time to review your estate planning strategies to take full advantage of the current and upcoming exemptions.

Contact the McGee Law Firm to schedule a consultation – 817-899-3286

Brandon McGee
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