Estate Tax Exemption Set to Rise to $15 Million Per Person in 2026, Reducing Tax Burden for Wealthy Families

The federal estate tax exemption is projected to rise to $15 million per person in 2026, or $30 million for married couples, according to financial planning experts. The increase means fewer estates will be subject to federal estate taxes, though state-level taxes may still apply.

The higher exemption is part of ongoing adjustments to tax law. Financial advisors say the change creates planning opportunities for families with significant assets, but also a need to review existing estate plans to make sure they reflect current rules.

"Many people set up their estate plans years ago and have not looked at them since," said a certified financial planner. "The rules have changed significantly, and an outdated plan can create problems."

In 2026, individuals can also gift up to $19,000 per recipient, or $38,000 for married couples, without triggering gift taxes. These annual exclusion gifts do not count against the lifetime exemption.

For high-income earners, new rules may limit the overall tax benefit of itemized deductions and impose additional constraints on charitable contributions. High-income workers aged 50 and older may also be required to make catch-up retirement contributions to Roth-style accounts, eliminating the immediate tax deduction.

A new savings account for minors is also available in 2026, including a $1,000 government contribution for newborns. Financial planners say this is a useful tool for families starting to build long-term wealth for their children.

Experts recommend reviewing beneficiary designations, updating powers of attorney, and confirming that appointed fiduciaries are still appropriate. They also suggest consulting a tax professional before making large gifts or transfers, as individual circumstances vary.

The estate tax exemption is scheduled to revert to lower levels after 2025 under prior law, but recent legislative changes have extended the higher limits.