Increased Federal Transfer Tax Exemptions for 2022

As 2021 came and went with no enactment of the proposed tax changes introduced in Congress, the federal estate, gift and generation-skipping transfer (GST) tax exemptions have all been raised for inflation as planned under the Tax Cuts and Jobs Act (TCJA).

The 2022 transfer tax exemptions are now as follows:

  • Estate tax exemption: $12.06 million (up from $11.7 million in 2021)
  • Lifetime gift tax exemption: $12.06 million (up from $11.7 million in 2021)
  • GST tax exemption: $12.06 million (up from $11.7 million in 2021)
  • Annual gift tax exclusion: $16,000 (up from $15,000 in 2021)

In addition, the top federal gift tax rate and top federal GST tax rate remain at 40% for 2022.

The increasing value of these tax benefits makes 2022 another great opportunity to revisit your estate and gifting plans and maximize your transfer tax savings, even if you have already hit last year’s exemption limits. Remember, even under current law, the exemptions are due to be slashed to pre-TCJA rates at the end of 2025, or sooner if tax law changes are enacted.

Please contact your Grassi advisor to discuss your estate and gifting strategies under the new 2022 exemption amounts.

Lisa Rispoli Lisa Rispoli is the Partner-in-Charge of Trust & Estate Services at Grassi and leader of the firm’s Private Client Services group. She has over 30 years of experience in accounting, estate planning & valuation, as well as gift, estate and trust taxation. Lisa is adept at working with clients and their professional advisors to develop estate plans to transfer family, business and personal wealth... Read full bio

Categories: Tax, Trusts & Estates