For 2023, the unified credit amount, generation-skipping transfer (GST) tax exemption, annual exclusion gift amount, income and capital gains tax brackets are all expected to be adjusted upward for inflation as follows:
- Gift, estate and GST tax exemption amounts: $12.92 million (up from $12.06 million).
- Annual gift tax exclusion (IRC Section 2503): $17,000 (up from $16,000).
- Top (37%) income tax bracket for estates and trusts: $14,450 (up from $13,450).
- Zero percent tax bracket for capital gains for estates and trusts: $3,000 (up from $2,800).
The Internal Revenue Service is expected to release official inflation adjustments in a revenue procedure this month.
