The IRS issued Rev. Proc. 2025-32, 2025-IRB (October 27, 2025) providing inflation adjustments for estate planners for tax year 2026.

The gift tax annual exclusion will remain $19,000 per taxpayer per donee;

The gift tax annual exclusion for gifts to non-US citizen spouses will be $194,000;

The income tax rates for trusts and estates will be 10% for income not over $3,300, 24% for income over $3,300 but not over $11,700, 35% for income over $11,700 but not over $16,000, and 37% for income over $16,000;

The maximum zero capital gains tax rate for trusts and estates will be $3,300 and the maximum 15% capital gains tax amount for trusts and estates will be $16,250;

The exemption from the kiddie tax will remain $1,350;

For more information about tax rates applicable to trusts, estates, and gifts please contact the attorneys at North Carolina Estate Planning and Fiduciary Law at 704-248-6325.