2020 Changes to the Federal Estate Tax

In 2020, the IRS made small changes to the estate tax (and related taxes), mainly adjusting for inflation.

Federal Estate Tax Exemption -- $11.58 million.

Unless your taxable estate is worth more than $11.58 million, your estate will not owe federal estate tax if you die in 2020. This is an incremental increase from $11.4 million in 2019. Portability continues to greatly increase the power of this exemption for married couples who can now leave up to $23.16 million without paying estate tax.

Learn more about estate tax and portability.

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 2020, the personal exemption for gift tax continues to be $15,000 per recipient per year—the same amount since 2018.

Learn more about gift tax.

Noncitizen Spouse Exemption

The noncitizen spouse exemption for 2020 is $157,000, up from $152,000 in 2019.

Learn more about estate planning with a non-citizen spouse.

Read On If You Like Tax Info!

You can read the entire IRS report on inflation-adjusted numbers for 2020: Revenue Procedure 2019-44.

Effective date: Jan 01, 2020