The estate tax exemption 2025 remains a crucial topic for anyone planning ahead. As of today, the federal lifetime exemption stands at $13.99 million per individual for estate and gift taxes—meaning those assets under that threshold aren’t taxed at death. This limit was established under the Tax Cuts and Jobs Act (TCJA) and applies only through the end of this year .
In July, Congress passed the One Big Beautiful Bill Act (OBBBA), which President Trump signed into law on July 4, 2025. Among its provisions, the act permanently raises the estate and gift tax exemption to $15 million per individual, effective January 1, 2026, with future adjustments indexed for inflation .
2025 Exemption Rules
- 2025 Exemption Still $13.99 Million
Until December 31, 2025, the exemption remains at $13.99 million. This applies to both estate and gift taxes, unified as a single lifetime exemption .
Changes Starting in 2026
- OBBBA’s Permanent Increase
Starting Jan. 1, 2026, the exemption rises to $15 million per individual ($30 million for married couples). Future inflation adjustments will begin with 2025 as the base year . - Why This Matters
Without OBBBA, the exemption would have dropped back to roughly $7 million in 2026 due to the TCJA sunset provisions . The new law removes that uncertainty—but doesn’t shield it from future political changes .
Quick Facts at a Glance
| Year | Estate Tax Exemption (Individual) | Notes |
|---|---|---|
| 2025 | $13.99 million | Enabled under TCJA; applies through December 31 |
| 2026 & later | $15 million + inflation | Permanent increase under OBBBA |
How You Can Plan Ahead
- Use the 2025 Exemption Wisely
You may make tax-free gifts and transfers up to $13.99 million before year-end to reduce your taxable estate. - Prepare for the $15 Million Exemption
The new threshold in 2026 removes the rush—giving you more time to craft careful, thoughtful plans . - Estate Planning Beyond Taxes
Despite a high exemption, estate planning isn’t just about taxes. It ensures clarity, intent, and protection for heirs, and avoids default state laws or unintended outcomes . - Stay Alert to Political Risk
OBBBA made the increase “permanent,” but future legislation could still alter these limits. Planning now offers stability—but maintain vigilance .
Final Thoughts
The estate tax exemption 2025 offers both an opportunity and a turning point. With $13.99 million available now and an assured increase to $15 million next year, individuals have a rare window to act with clarity. Thoughtful estate planning—grounded in both tax strategy and personal legacy—is still essential.
What steps are you considering for your estate strategy? Let’s keep the conversation going—feel free to share your thoughts or ask questions below.