For 2022, the IRS made small changes to the estate tax (and related taxes), mainly adjusting for inflation.
Federal Estate Tax Exemption -- $12.06 million.
Unless your taxable estate is worth more than $12.06 million, your estate will not owe federal estate tax if you die in 2022. This is an incremental increase from $11.7 million in 2021.
Portability continues to greatly increase the power of this exemption for married couples who can now leave up to $24.12 million without paying estate tax.
In the handful of states that still have state estate tax. The states' exemptions are significantly 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 2022, the personal exemption for gift tax is $16,000 per recipient per year—an increase from the $15,000 that it was from 2018 through 2021.
Noncitizen Spouse Exemption
The noncitizen spouse exemption for 2022 is $164,000, up from $159,000 in 2021.
Read On If You Like Tax Info!
You can read the entire IRS report on inflation-adjusted numbers for 2022: Revenue Procedure 2021-45.
Effective date: Jan 01, 2022