Preservation | Family Wealth Protection & Planning


Blog Editors



2021 Tax Rates and Exemption Amounts for Estates and Trusts
January 22, 2021 at 11:00 AM

Now that the new year has arrived, it is a good time to catch up on the latest tax rates for estate and trust income tax brackets and exemption amounts for estate, gift and generation-skipping transfer (GST) taxes in 2021. The Internal Revenue Service adjusts these figures annually for cost-of-living increases.

Below is a summary of the 2021 figures. The original news release from the IRS may be found here.

2021 Gift, GST and Trusts & Estates Income Tax Rates

Gift tax: The lifetime gift tax exemption for gifts made during 2021 is $11.7 million (increased from $11.58 million in 2020). The top marginal rate remains 40 percent. The gift tax annual exclusion amount remains $15,000. The annual exclusion for gifts made to noncitizen spouses in 2021 is $159,000 (increased from $157,000 in 2020).

GST tax: The GST tax exemption amount, which can be applied to generation-skipping transfers (including those in trust) during 2021, is $11.7 million (increased from $11.58 million in 2020). The rate remains 40 percent.

Income tax: The tax rate schedule for estates and trusts in 2021 is as follows:

If taxable income is:

The tax is:

Not over $2,650

10 percent of taxable income

Over $2,650 but not over $9,550

$265 plus 24 percent of the excess over $2,650

Over $9,550 but not over $13,050

$1,921 plus 35 percent of the excess over $9,550

Over $13,050

$3,146 plus 37 percent of the excess over $13,050

Facebook Twitter LinkedIn Google+ Email

This website uses cookies to improve functionality and performance. If you choose to continue browsing this website, you consent to the use of cookies. Read our Privacy Policy here for details.