Tax Inflation Adjustments - Looking Ahead to 2023
November 08, 2022
As you look to planning for 2023, keep in mind the recently announced annual inflation adjustments from the Internal Revenue Service that will take effect beginning in 2023.
Federal Estate and Gift Tax Exemption/Exclusion Levels
Below is a chart showing the gift and estate tax figures for 2022, 2023, and how they are set to look in 2026.
2022 |
2023 |
2026* |
|
Gift and Estate Tax Exemption |
$12,060,000 |
$12,920,000 |
$6,460,000** |
Generation-Skipping Tax Exemption |
$12,060,000 |
$12,920,000 |
$6,460,000** |
Gift Tax Annual Exclusion |
$16,000 |
$17,000 |
$17,000** |
Annual Exclusion for Gifts to Noncitizen Spouse |
$164,000 |
$175,000 |
$175,000** |
*Under current law, the exemption will be decreased by 50% in 2026
**Plus inflation adjustments