Here are some key numbers associated with estate planning, as well as the federal gift tax and estate tax rate schedules for 2022 and 2023.
| 2022 | 2023 | |
|---|---|---|
| Annual gift tax exclusion: | $16,000 | $17,000 |
| Gift tax and estate tax applicable exclusion amount: | $12,060,000 1 + DSUEA 2 | $12,920,000 1 + DSUEA 2 |
| Noncitizen spouse annual gift tax exclusion: | $164,000 | $175,000 |
| Generation-skipping transfer (GST) tax exemption: | $12,060,000 3 | $12,920,000 3 |
| GST tax rate | 40% | 40% |
| Special use valuation limit (qualified real property in decedent’s gross estate): | $1,230,000 | $1,310,000 |
2022 and 2023 Gift Tax and Estate Tax Rate Schedule
| Taxable Gift/Estate | Tentative Tax Equals | Plus | Of Amount Over |
|---|---|---|---|
| 0 – $10,000 | $0 | 18% | $0 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1,000,000 | $248,300 | 39% | $750,000 |
| $1,000,000 + | $345,800 | 40% | $1,000,000 |
| Credit shelter amount: $12,060,000 in 2022, $12,920,000 in 2023 | Unified credit amount: $4,769,800 in 2022, $5,113,800 in 2023 | ||
The H Group does not render legal, accounting or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences.
This article was reprinted with permission by Broadridge Financial Services, Inc.. The views expressed herein are those of Broadridge and do not necessarily reflect the views of The H Group. This article was legally licensed through AdvisorStream.
This content has been reviewed by FINRA.Prepared by Broadridge Advisor Solutions. © 2023 Broadridge Financial Services, Inc.
1 The basic exclusion amount.
2 Deceased spousal unused exclusion amount (for 2011 and later years)
3 The GST tax exemption is not portable.