On January 1 of each year, the estate and gift tax “basic exclusion amount,” currently $12,920,000 per person, is adjusted for inflation. The 2024 inflation adjustment, which will be based on data gathered through August 31 of this year, will be announced this fall. But because the inflation adjustment incorporates data going back to September 2021, it is possible to project the 2024 inflation adjustment now with some precision. The adjustment will be approximately $740,000. The size of the 2025 inflation adjustment will depend on the course of inflation over the next year, but $500,000 is a reasonable guess based on currently available data and the continued inflationary pressures in the American economy. The gift tax annual exclusion will jump to $18,000 in 2024 and will likely reach $19,000 in 2025.