Yes, significant changes to U.S. federal estate and gift tax laws are effective January 1, 2026, primarily driven by the "One Big Beautiful Bill Act" (signed July 2025), which locks in higher exemptions rather than allowing a scheduled, massive reduction. The lifetime estate and gift tax exemption increases to $15 million per individual ($30 million for married couples) for 2026, up from $13.99 million in 2025.
As of January 1, 2026, the federal gift and estate tax exemption amount, as well as the exemption from the generation-skipping transfer (GST) tax (collectively referred to as the “lifetime exemption amounts”), have increased from $13,990,000 to $15,000,000 per person, an increase of $1,010,000 per person.
California has made one noteworthy change in the probate arena. Beginning in 2026: The small estate limit to avoid Probate is $208,850 for non-real estate assets. You can now also avoid Probate if the estate contains real property valued under $750,000 (as of the date of death) and cash accounts under $208,850.
The One, Big, Beautiful Bill (OBBB) was signed into law on July 4, 2025. as Public Law 119-21. OBBB amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026.
For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.
New tax brackets for 2026
The amount of taxes you will pay depends on how much you make each year. Income under $58,523 will be taxed at 14 per cent. Incomes from $58,523 to $117,045 will be taxed at 20.5 per cent.
The new law will increase the estate tax exemption to $15 million for single people and $30 million for couples in 2026 and allow it to rise with inflation moving forward. In other words, a couple will be able to leave $29.99 million to their heirs in 2026 without paying a cent of estate tax.
But entering 2026 with a clear, updated estate plan can bring clarity, control, and a sense of readiness for whatever the coming years hold. Whether an estate plan is brand new or years old, revisiting it with intention can help ensure that it still reflects personal goals, family needs, and current laws.
Timeline Rules
You can typically inherit a large amount without federal taxes because the tax applies to the deceased's estate, not the recipient, and the exemption is very high: $13.99 million in 2025 and $15 million in 2026 per person, meaning most inheritances fall below this threshold. The key is that the estate's total value must exceed these limits for any tax to be owed by the estate. Inheritances themselves (cash, property) are generally not income, but earnings on them (like interest/dividends) or pre-tax retirement funds (like IRAs) are taxable.
Beginning Jan. 1, 2026, apartments are required to come equipped with a refrigerator and stove, as well as basic appliances that many reasonable renters expect would also be required. Beginning January 1, 2026, stores will only be allowed to distribute recycled paper bags to customers at the point of sale.
Once 2026 withholdings go into effect, "folks will see slightly larger paychecks," assuming their income stays the same as 2025, said Andrew Lautz, director of tax policy for the Bipartisan Policy Center.
For 2025, the U.S. federal estate and gift tax exemption is $13.99 million per individual, allowing that much to pass tax-free, with married couples potentially doubling this through portability to nearly $28 million; this high exemption is scheduled to sunset at the end of 2025, reverting to a lower amount in 2026 unless Congress acts, while an annual gift exclusion of $19,000 per recipient also applies.
In 2026, estate and gift tax exemptions will drop. This change means that, starting in 2026, individuals and families may owe estate tax on a larger portion of their wealth if their estate exceeds the exemption limit.
Yes, you can give your son $100,000 tax-free in 2025 by utilizing the annual gift tax exclusion and your lifetime exemption, but you'll need to report the gift to the IRS on Form 709 since it exceeds the $19,000 annual limit, though you won't pay tax unless you exceed your much larger $13.99 million lifetime gift/estate tax exemption. The gift is considered yours (the giver) for tax purposes, not your son's.
You can typically inherit a very large amount from your parents before hitting federal estate tax thresholds, which are around $15 million per individual in 2026, meaning most heirs receive tax-free inheritances because estates rarely exceed this limit; however, some states have their own estate or inheritance taxes, and income from inherited assets (like IRAs or rental income) is usually taxable, according to this U.S. Bank article, this Fidelity article, this Domain Money article, and this Tax Foundation article.
Generally, no, if it is a non-taxable asset like cash. However, you must report any taxable income generated by the inherited asset, such as dividends, rental income, or distributions from an inherited IRA.
The Social Security Administration announced in October that beneficiaries will see a 2.8% increase in their monthly payments, known as the cost-of-living adjustment, or COLA. Individuals receiving Social Security benefits will notice the increase starting in January 2026.
The middle 20 percent will see a tax increase in some states and, on average nationwide, will see a tax cut of $370 compared to what they now pay. In 44 states, the poorest 20 percent or poorest 40 percent of taxpayers would see a tax increase in 2026 compared to this year.