Before 1 January 2026, will US federal legislation become law that sets the federal estate tax exemption for individuals for 2026 higher than or equal to what it was in 2025?
Closing Jan 1, 2026 08:01AM (in 9 months)
As part of the Tax Cuts and Jobs Act of 2017 (TCJA), the base level of the federal estate tax exemption was increased from $5 million to $10 million for 2018 through 2025, with inflation adjustments (Merrill, 26 USC §2010, Cornell - Estate Tax). President Trump and Congress are working to extend various provisions of the TCJA (AP). If the TCJA expires without being replaced and no other changes are made, the base level is scheduled to expire and will revert back to $5 million (adjusted for inflation), which would be approximately $7 million (Citizens Bank). Please note that the question is concerned with the actual total exemption in 2026, not merely the base level. For 2025, the federal estate tax exemption for individuals was $13,990,000 (IRS - Estate Tax).
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