The lifetime gift and estate tax exemption is scheduled to increase from $12.06mm in 2022 to $12.92mm per person for 2023. This is an increase of $860,000. The annual gift tax exclusion (i.e., present-interest gifts can be made up to $17,000 to or for the benefit of an unlimited number of individuals) which is an increase from $16,000 in 2022. If married, an individual and their spouse can gift-split to make annual exclusion gifts of up to $34,000 without applying the lifetime gift and estate tax exemptions, and will have a combined lifetime gift and estate tax exemption of $25.84mm.
For non-U.S. citizen spouses, the annual exclusion for inter-spousal gifts will increase to $175,000 in 2023 from $164,000 in 2022. Gifts between spouses who are both U.S. citizens are generally unlimited.
These threshold amounts will go into effect for gift and estate tax purposes on January. 1, 2023.