OBBBA Impact on Estate and Gift Taxation
Article
07.15.2025
By Garrett Murphy, CPA
The One Big Beautiful Bill Act (OBBBA) permanently raises the federal estate and gift tax exemption to $15 million per person (indexed for inflation) starting in 2026, allowing individuals and families to transfer more wealth tax-free.
This change averts the scheduled sunset of the Tax Cuts and Jobs Act (TCJA), which would have reduced the exemption to about $6 million per person and subjected many more estates to tax.
By locking in a higher exemption, OBBBA provides greater certainty and flexibility for estate planning, ensuring that far fewer families will face federal estate or gift taxes in the coming years.
Estate and Gift Tax Comparison
| Provision | 2025 Law | 2026 Law (OBBA) |
| Lifetime Exemption | $13,990,000 | $15,000,000 (indexed for inflation) |
| Annual Gift Tax Exclusion |
$19,000 |
$19,000+ (indexed for inflation) |
| GST Exemption | $13,990,000 |
$15,000,000 (indexed for inflation) |