IRS announces 2027 changes to child tax credit, estate tax exemption and more

Taxes IRS announces 2027 changes to child tax credit, estate tax exemption and more Among the adjustments, the maximum earned income tax credit for qualifying taxpayers with three or more children will rise from $8,231 in 2026 to $8,496 in 2027. By Matt Stefanski and NBC Chicago Staff • Published November 8, 2026 • Updated 3 hours ago Americans will see changes to several key tax benefits in 2027, including the child tax credit and earned income tax credit as well as estate and gift tax exemptions. The maximum child tax credit will rise to $2,300 in 2027, up $100 from 2026. The refundable portion of the credit will increase by $100 to $1,800. Stream NBC 5 for free, 24/7, wherever you are. WATCH HERE For qualifying taxpayers with three or more children, the maximum earned income tax credit will increase from $8,231 in 2026 to $8,496 in 2027. The IRS has also raised the estate tax exclusion to $15.48 million for estates of people who die in 2027, up from $15 million in 2026. Separately, the annual gift tax exclusion will increase to $20,000 per recipient in 2027, up from $19,000 in 2026. That means an individual can generally give up to $20,000 to another person during the year without reducing their lifetime estate and gift tax exemption. Other changes include: Adoption credit: The maximum tax credit will rise to $18,250 in 2027, up from $17,670 in 2026. Of the newer amount, up to $5,280 may be refundable. Employer-provided childcare tax credit: The maximum credit available to employers will increase to $515,943.67 in 2027, up from $500,000 in 2026. Health flexible spending plans: The contribution limit for health FSAs will rise to $3,500 in 2027, up $100 from the previous year. For plans that allow unused funds to carry over, the maximum carryover will increase by $20 to $700. Foreign earned income exclusion: The exclusion will increase to $137,300 in 2027, up $4,400 from $132,900 in 2026. This article tagged under: Taxes