An estate tax exemption from the 2017 Tax Cuts and Jobs Act (TCJA) could be reverted to pre-TCJA levels, with adjustments for inflation, by the end of 2025. According to USDA’s Economic Research Service, the estimated exemption at the time of expiration would be $13.95 million per person. If the exemption expires, the exemption will be lowered to $6.98 million per deceased person in 2026. Subsequently, the number of farm operator estates subject to taxation would likely rise from a percentage of 0.3 to 1.0 in 2026.

Large farms with gross cash income between $1 million and $5 million would see the most significant increase in the number of estates owing estate tax. If the provision were to expire, total Federal estate taxes for farm estates would be projected to at least double to $1.2 billion.

Read more on the estate tax provision here.