The Tax Cuts and Jobs Act of 2017 made substantial changes to U.S. laws starting in 2018. One of the most significant changes was to the federal gift and estate tax lifetime exemption.
In 2017, the exemption was $5.49 million. As such, only those estates with gross assets of more than $5.49 million were subject to the estate tax and had to file a federal estate tax return. The TCJA doubled the amount to $11.18 million for 2018, thus exempting additional estates from having a federal estate tax burden. The exemption was indexed for inflation every year and is $13.99 million for 2025. However, the exemption is scheduled to be halved beginning Jan. 1, 2026.
