The following is a chart of the federal estate tax exclusions. the bottom and top tax rates that have been in effect since 1977 (assuming no taxable gifts before 1977), and the federal gift tax annual exclusions. The federal gift tax lifetime exclusion amounts were the same as the estate tax exclusions, except for the years 2004 through 2010, when the federal gift tax exclusion amount was limited to $1,000,000.
Year | Estate Tax Exclusion | Estate Tax Initial Rate (Above Exclusion) | Estate Tax Maximum Rate | Gift Tax Annual Exclusion |
|---|---|---|---|---|
1977 | $120,667 | 30% | 70% | $3,000 |
1978 | $134,000 | 30% | 70% | $3,000 |
1979 | $147,333 | 30% | 70% | $3,000 |
1980 | $161,563 | 32% | 70% | $3,000 |
1981 | $175,625 | 32% | 70% | $3,000 |
1982 | $225,000 | 32% | 65% | $10,000 |
1983 | $275,000 | 34% | 60% | $10,000 |
1984 | $325,000 | 34% | 55% | $10,000 |
1985 | $400,000 | 34% | 55% | $10,000 |
1986 | $500,000 | 37% | 55% | $10,000 |
1987-1996 | $600,000 | 37% | 55% | $10,000 |
1997 | $600,000 | 37% | 60%[1] | $10,000 |
1998 | $625,000 | 37% | 60%[1] | $10,000 |
1999 | $650,000 | 37% | 60%[1] | $10,000 |
2000-2001 | $675,000 | 37% | 60%[1] | $10,000 |
2002 | $1,000,000 | 41% | 50% | $11,000 |
2003 | $1,000,000 | 41% | 49% | $11,000 |
2004 | $1,500,000 | 45% | 48% | $11,000 |
2005 | $1,500,000 | 45% | 47% | $11,000 |
2006 | $2,000,000 | 46% | 46% | $12,000 |
2007-2008 | $2,000,000 | 45% | 45% | $12,000 |
2009 | $3,500,000 | 45% | 45% | $13,000 |
2010[2]-2011 | $5,000,000 | 35% | 35% | $13,000 |
2012 | $5,120,000 | 35% | 35% | $13,000 |
2013 | $5,250,000 | 40% | 40% | $14,000 |
2014 | $5,340,000 | 40% | 40% | $14,000 |
2015 | $5,430,000 | 40% | 40% | $14,000 |
2016 | $5,450,000 | 40% | 40% | $14,000 |
2017 | $5,490,000 | 40% | 40% | $14,000 |
2018 | $11,180,000 [3] | 40% | 40% | $15,000 |
2019 | $11,400,000 | 40% | 40% | $15,000 |
2020 | $11,580,000 | 40% | 40% | $15,000 |
2021 | $11,700,000 | 40% | 40% | $15,000 |
2022 | $12,060,000 | 40% | 40% | $16,000 |
2023 | $12,920,000 | 40% | 40% | $17,000 |
2024 | $13,610,000 | 40% | 40% | $18,000 |
2025 | $13,990,000 | 40% | 40% | $19,000 |
2026 | $15,000,000 [4] | 40% | 40% | TBD |
Notes to table:
[1] The 60% maximum tax rate actually represents an additional 5% that was added to estates of more than $10,000,000 from the years 1997 to 2001 in order to eliminate the benefit of the progressive tax table. The additional 5% ended at a taxable estate of $17,184,000, which is when the average tax rate reached 55%. So the top marginal tax rate during those years was 60%, but the top average tax rate was 55%.
[2] The federal estate tax in 2010 was actually optional, and estates could elect to pay no estate tax and instead accept a limit on the increase in the income tax basis on assets included in the estate.
[3] The basic exclusion amount was doubled for the years 2018 through 2025 under section 11061 of P. L. 115-97.
[4] The basic exclusion amount was increased to $15,000,000 by section 70106 of P.L. 119-21, with adjustments for inflation after 2025.