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The Internal Revenue Service has announced a higher estate and gift tax exemption for 2027. In its announcement Thursday, the agency increased the federal "basic exclusion amount" to $15.48 million per person for 2027, up from $15 million in 2026. The exemption applies to tax-free transfers during life and at death. The IRS also increased figures for dozens of other provisions, including federal income tax brackets , the capital gains tax brackets and eligibility for the earned income tax credit, among others. The inflation adjustments for 2027 come as Americans wrestle with affordability issues amid the rising cost of housing, groceries, gasoline and other living expenses.
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