IRS Inflation Adjustments for 2027

On November 5, 2026, the IRS announced the inflation adjustments for 2027 through Rev. Proc. 2026-35. The estate and gift tax exclusion increased from $15,000,000 to $15,480,000. The annual gift tax exclusion increased from $19,000 to $20,000. The qualified small business stock exemption amount increased from $15,000,000 to $15,480,000. The standard deduction for joint filers increased by $1,000 to $33,200. The standard deduction for single filers and married individuals filing separately increased by $5,000 to $16,600. The threshold for the highest marginal tax rate increased by $20,775 for single taxpayers to $661,375, and $24,950 for joint filers to $793,650. If you have any tax questions, please call 916-822-8700 or email info@lawburton.com.