2018 Changes to the Federal Estate Tax

2018 brought significant changes for the federal estate tax and other related taxes.

Federal Estate Tax Exemption -- $11.18 million.

An estate of someone who died in 2018 would not owe estate tax unless the "taxable estate" is worth more than $11.18 million. Due to the Tax Cuts and Jobs Act of 2017, this exemption amount is more than double 2017's exemption of $5.49 million. In 2018, portability also continues, so that married couples can now leave up to $22.36 million.

Learn more about estate tax and portability.

Keep mind that in the handful of states that still have state estate tax, the exemptions are lower than the federal exemption. So an estate might be large enough to owe state estate tax even if it is not large enough to owe federal estate tax.

Learn more about state estate taxes.

Personal Gift Tax Exemption

In 2018, the personal gift tax exemption also rose—from $14,000 to $15,000 per recipient per year.

Learn more about gift tax.

Noncitizen Spouse Exemption

Now $152,000, up from $149,000 in 2017.

Learn more about estate planning with a noncitizen spouse.

Read On If You Like Tax Info!

You can read the entire IRS report on inflation-adjusted numbers for 2018: IRS Bulletin 2018-10, Rev. Proc. 2018–18.

Effective date: Jan 01, 2018