For 2023, the estate tax exemption is $12,920,000. This is the amount an individual can leave to his or her heirs without paying any federal estate or gift tax. In addition, if any applicable exclusion amount remains unused as of the death of a spouse, the surviving spouse may add this unused amount to his or her own estate tax exemption. The American Taxpayer Relief Act permanently allows for inflation adjustments. For 2024, the estate tax exemption is $13,610,000.

The annual gift tax exclusion is $17,000 for 2023 and $18,000 for 2024.