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The Internal Revenue Service has announced a higher estate and gift tax exemption<\/a> for 2027.<\/p>\n In its\u00a0announcement Thursday, the agency increased the federal “basic exclusion amount” to $15.48 million per person for 2027, up from $15 million in 2026. The exemption applies to tax-free transfers during life and at death. <\/p>\n State estate and inheritance tax exemptions can be lower.<\/p>\n The IRS also increased figures for dozens of other provisions, including\u00a0federal income tax brackets<\/a>, the\u00a0capital gains tax brackets and eligibility for the\u00a0earned income tax credit, among others.<\/p>\n The inflation adjustments for 2027 come as Americans wrestle with affordability issues amid the rising cost of housing, groceries, gasoline and other living expenses.\u00a0<\/p>\n Read more CNBC personal finance coverage<\/p>\n President Donald Trump<\/a>‘s “big beautiful bill”<\/a> increased the estate and gift tax exemption to $15 million per person. Without the change from Congress, the exemption would have reverted to 2017 levels \u2014 $5 million plus an inflation adjustment \u2014 after 2025, which spurred proactive estate planning<\/a> from ultra-wealthy families before the legislation. <\/p>\n