The IRS issued the following estate and gift tax adjustments for 2026:
- Federal Gift Tax Annual Exclusion: An individual may now give up to $19,000.00 per year, per recipient, without using any of the individual’s lifetime estate tax exemption amount. A married couple is entitled to gift up to $38,000.00 each year to any child, grandchild, or other recipient without reporting the gift to the IRS.
- Additional gifts in excess of the $19,000.00 annual exclusion are permitted for contributions to 529 education plans and specific education and health costs paid directly to an educational institution or health care provider.
- Federal Lifetime Exemption from Gift and Estate Tax: The total amount that an individual may gift during their life or pass to their heirs at death before incurring a federal gift or estate tax liability is $15 million in 2026. The lifetime exemption for a married couple is $30 million.
The Massachusetts estate tax filing threshold is $2.0 million. Massachusetts does not impose a tax on gifts.