2023 Estate Tax Exemption
The 2023 Estate Tax Exemption is $12,920,000.
Effective 2023-01-01Source: Rev. Proc. 2022-38 (IRS)Verified 2026-09-01
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Basic exclusion amount | $12,060,000 | $12,920,000 | +$860,000 (+7.1%) |
Who it applies to
Estates of decedents dying in calendar year 2023
What changed this year, and why
For 2023, the IRS set the basic exclusion amount at $12,920,000, up from $12,060,000 in 2022. The basic exclusion amount determines the unified credit against estate tax under IRC § 2010.
Common questions
- What is the estate tax exemption?
- The basic exclusion amount is the per-person amount shielded from federal estate and gift tax during a lifetime and at death. It is set each year by the IRS and adjusted for inflation. For 2023 it is $12,920,000.
- Is this amount the same every year?
- The basic exclusion amount is the per-person amount shielded from federal estate and gift tax. It is set each year by the IRS and adjusted for inflation. For 2023 it is $12,920,000, up from $12,060,000 in 2022.
Which estates have to file at all
For someone who died in 2023 in the United States, the executor must file IRS Form 706 if the decedent was a U.S. citizen or resident and either the gross estate (plus adjusted taxable gifts and specific exemption) exceeds $12,920,000, or the executor chooses to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse regardless of estate size. The $12,920,000 basic exclusion amount is the filing threshold for 2023. Estates below that amount generally do not need to file unless the executor is making the portability election to preserve the unused exclusion for the surviving spouse.
Which Estates Must File For decedents who died in 2023, Form 706 must be filed by the executor of the estate of every U.S. citizen or resident: a. Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $12,920,000; or b. Whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent's gross estate.
Instructions for Form 706 (Rev. September 2023), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
What counts toward the exemption
For the federal estate tax, the gross estate is broadly defined. It includes all property in which the decedent had an interest at the time of death, including property located outside the United States. Beyond outright ownership, the gross estate also captures: certain lifetime transfers made without adequate consideration, annuities, the includible portion of joint estates with right of survivorship, and the includible portion of tenancies by the entirety. Additional items such as certain life insurance proceeds, digital assets, property subject to a general power of appointment, dower or curtesy interests of the surviving spouse, and the decedent's share of community property are also included. All of these assets are counted when determining whether the estate exceeds the $12,920,000 basic exclusion amount for 2023. Detailed valuation rules for each category are found in the instructions for Schedules A through I of Form 706.
The gross estate includes all property in which the decedent had an interest (including property outside the United States). It also includes: • Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth, • Annuities, • The includible portion of joint estates with right of survivorship (see the instructions for Schedule E), • The includible portion of tenancies by the entirety (see the instructions for Schedule E),
Instructions for Form 706 (Rev. September 2023), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
The nine-month deadline and the extension
The IRS requires Form 706 to be filed within 9 months after the date of the decedent's death to report estate and generation-skipping transfer tax. Executors who cannot meet this deadline may use Form 4768 to request an automatic 6-month extension of time to file. For estates that wish to make the portability election, the same timing rules apply: the election is valid only if Form 706 is filed within 9 months of death or, if an extension was granted, before the 6-month extension period ends. Executors who did not have a filing requirement but failed to timely file for portability may qualify for relief under Rev. Proc. 2022-32, which allows filing on or before the fifth anniversary of the decedent's death.
You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent's death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file.
Instructions for Form 706 (Rev. September 2023), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
Carrying an unused exemption to a surviving spouse
Under federal estate tax law, an executor may elect to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, allowing the surviving spouse to apply the unused portion of the basic exclusion amount against their own transfers. The IRS permits this portability election only if Form 706 is filed on a timely basis. Timely means within 9 months of the decedent's date of death or, if an extension of time to file has been granted, before the 6-month extension period ends. Executors who were not otherwise required to file but missed the deadline may still be eligible for an extension under Rev. Proc. 2022-32, which permits filing on or before the fifth anniversary of the decedent's death, provided the return states it is filed pursuant to that revenue procedure.
Portability election. An executor can only elect to transfer the DSUE amount to the surviving spouse if the Form 706 is filed timely, that is, within 9 months of the decedent's date of death or, if you have received an extension of time to file, before the 6-month extension period ends.
Instructions for Form 706 (Rev. September 2023), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2022-38 (IRS)
- Basic exclusion amount
.41 Unified Credit Against Estate Tax. For an estate of any decedent dying in calendar year 2023, the basic exclusion amount is $12,920,000 for determining the amount of the unified credit against estate tax under § 2010.