Now that we are in 2026, IRS inflation adjustments and legislatively directed thresholds are in effect across estate and gift taxation, income tax rates, capital gains, and the generation-skipping transfer (GST) tax. Below outlines the major federal limits applicable for the 2026 tax year. This content is provided for informational purposes only and is not intended as tax or legal advice.

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Estate, Gift & GST Tax

• Annual gift tax exclusion: $19,000

• Annual non-US citizen spouse gift tax exclusion: $194,000

• Estate/generation skipping/lifetime gift exemption: $15,000,000

• Maximum marginal transfer tax rates: 40%

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Maximum Marginal Ordinary Income Tax Rate

• Maximum marginal ordinary income tax rate: 37%

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Capital Gains Rate

• Married filing jointly
  
  • 0% if taxable income is at or below: $98,900
  • 15% if taxable income is at or below: $613,700
  • 20% if taxable income is at or below: $613,700

• Head of household
  
  • 0% if taxable income is at or below: $66,200
  • 15% if taxable income is at or below: $579,600
  • 20% if taxable income is at or below: $579,600
• Single
  
  • 0% if taxable income is at or below: $49,450
  • 15% if taxable income is at or below: $545,500
  • 20% if taxable income is at or below: $545,500

• Married filing separately 
  
  • 0% if taxable income is at or below: $49,450
  • 15% if taxable income is at or below: $306,850
  • 20% if taxable income is at or below: $306,850

• Estates and trusts
  
  • 0% if taxable income is at or below: $3,300
  • 15% if taxable income is at or below: $16,250
  • 20% if taxable income is at or below: $16,250

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Investments Surtax of 3.8% May Apply After Modified Adjusted Gross Income (MAGI) Exceeds

• Single, head of household: $200,000
• Married filing jointly of qualifying widow(er): $250,000
• Married filing separately: $125,000
• Estates and trusts: $16,000

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