The IRS, on 18th October 2022, announced that up from $12.06 million in 2022, individuals may transmit up to $12.92 million in 2023 to heirs without incurring federal estate taxes. 

By opting for portability, married couples may now double their exclusions and transfer over $26 million in 2023, up from over $24 million in 2022.

In 2023, the yearly cap for tax-free gifts will increase from $16,000 to $17,000. Thus, anybody may offer tax-free gifts of up to $17,000 to an infinite number of individuals. These gifts are not deducted from the bigger estate tax exemption. The new exclusion limit gives people potentially subject to the inheritance tax—those whose 2023 personal worth surpasses $12.92 million—$860,000 more to give tax-free at the start of the coming year.

The IRS makes yearly adjustments for inflation to dozens of tax rules, such as the standard deduction and income tax rates, using calculations specified by federal law. The current string of record inflation requires substantial adjustments to the data.

Since Government’s 2017 tax overhaul, the estate-tax exemption has roughly doubled.  When the 2017 tax cuts expire on January 1, 2026, the estate exclusion will return to $5 million, adjusted for inflation, unless Congress acts, limiting the time to leverage the higher restrictions.