Gift Tax Calculator
Calculate gift tax on large gifts. See how much of the annual $18,000 exclusion you've used and how your lifetime exemption is affected by taxable gifts.
Estate Planning Guide HubGift Tax Calculator
Enter the gift amount, the number of recipients, and whether you're gift splitting with a spouse to see how your annual exclusion and lifetime exemption are affected.
No gift tax due — gifts are covered by your lifetime exemption.
Form 709 Required: No
No Form 709 needed — all gifts are within the annual exclusion.
2026 Gift Tax Limits
Annual exclusion: $18,000 per recipient
Lifetime exemption: $13,990,000
For informational purposes only. Consult a tax professional for advice specific to your situation.
How the Gift Tax Works
The gift tax is one of the most misunderstood taxes in the US code. Most people who give money to family members will never pay a dollar of gift tax in their lifetime — but understanding the rules matters for estate planning and annual giving strategies.
For a complete explanation of how the gift tax works from exclusions to Form 709, see our article: How the Gift Tax Works: Annual Exclusion and Lifetime Exemption.
The $18,000 Annual Exclusion
In 2026, you can give up to $18,000 per recipient per year without any gift tax consequence and without touching your lifetime exemption. This is called the annual gift tax exclusion.
Key points:
- The $18,000 limit applies per recipient — not per giver
- You can give $18,000 to as many people as you like in the same year
- Gifts below this threshold don't need to be reported to the IRS
- The exclusion resets on January 1 each year — it doesn't carry forward
Example: You have four children and two grandchildren. You can give each of them $18,000 in the same year — a total of $108,000 — with zero gift tax and no Form 709 required.
Gift Splitting with a Spouse
Married couples can elect gift splitting, which doubles the annual exclusion to $36,000 per recipient. Both spouses must consent to gift splitting, and it applies to all gifts made by either spouse during the year.
Gift splitting requires filing Form 709 even though no tax is owed — it's how the IRS tracks the election.
| Giver | Annual Exclusion Per Recipient |
|---|---|
| Single individual | $18,000 |
| Married couple (gift splitting) | $36,000 |
The Lifetime Gift Tax Exemption
Every dollar you give over the annual exclusion reduces your lifetime exemption, which is $13,990,000 in 2026. This exemption is unified with the estate tax exemption — meaning gifts made during your lifetime and assets left at death share the same $13.99M shield.
This is why most people never pay gift tax. Unless your total lifetime taxable gifts plus estate exceed $13.99 million, no actual gift tax will ever be due.
| Scenario | Tax Due? |
|---|---|
| Gift is $18,000 or less per recipient | No — fully excluded |
| Gift exceeds $18,000 but lifetime exemption not exhausted | No — reduces exemption |
| Lifetime exemption fully exhausted | Yes — 18% to 40% on excess |
Gift Tax Rates
If you somehow exhaust your entire $13.99M lifetime exemption (and estate), gift tax is progressive:
| Taxable Gift Amount | Rate |
|---|---|
| Up to $10,000 | 18% |
| $10,001 – $20,000 | 20% |
| $20,001 – $40,000 | 22% |
| $40,001 – $60,000 | 24% |
| $60,001 – $80,000 | 26% |
| $80,001 – $100,000 | 28% |
| $100,001 – $150,000 | 30% |
| $150,001 – $250,000 | 32% |
| $250,001 – $500,000 | 34% |
| $500,001 – $750,000 | 37% |
| Over $1,000,000 | 40% |
What Is Excluded from Gift Tax Entirely
Some transfers are completely excluded from gift tax, no matter how large, and don't count against any exclusion or exemption:
- Tuition paid directly to educational institutions — paying your grandchild's college tuition directly to the school is 100% gift-tax-free with no dollar limit
- Medical expenses paid directly to providers — covering a family member's hospital bill paid directly to the hospital is fully excluded
- Gifts to a US-citizen spouse — the unlimited marital deduction means gifts between US-citizen spouses are never subject to gift tax
- Gifts to political organizations for their use
- Charitable gifts — to qualified 501(c)(3) organizations
Important: These exclusions only apply when you pay the institution or provider directly. Writing a check to the student or patient and having them pay counts as a taxable gift.
Gifts to Non-Citizen Spouses
If your spouse is not a US citizen, the unlimited marital deduction doesn't apply. Instead, you can give up to $185,000 per year to a non-citizen spouse without gift tax. Amounts above that use your lifetime exemption.
When You Must File Form 709
You must file Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) if:
- You gave any person more than $18,000 in the year (even if no tax is owed)
- You're electing gift splitting with your spouse
- You made gifts of future interests (like contributions to certain trusts)
Form 709 is due on the same deadline as your income tax return — April 15, with extensions available to October 15. Note that an extension of time to file your income tax return does not automatically extend the time to pay any gift tax due.
Worked Example: Large Gift with No Tax
Scenario: Parent gives $100,000 to one child.
- Annual exclusion: $18,000
- Taxable gift: $100,000 − $18,000 = $82,000
- Applied to lifetime exemption: $13,990,000 − $82,000 = $13,908,000 remaining
- Gift tax owed: $0 (exemption not exhausted)
- Form 709 required: Yes (gift exceeded annual exclusion)
Estate Planning Connection
Strategic gifting during your lifetime reduces your taxable estate at death. Every dollar removed from your estate now is a dollar that won't be subject to the 40% estate tax later.
The math works powerfully over time. Giving the maximum annual exclusion to 5 heirs for 10 years removes $900,000 from your estate — tax-free, with no exemption used.
For high-net-worth planning, consider the Estate Tax Calculator to model how current giving affects your projected taxable estate: Estate Tax Calculator.
The Sunset Problem
The current $13.99M lifetime exemption is historically high. Unless Congress acts, it is scheduled to revert to roughly $7 million (inflation-adjusted) after 2025. Estates between $7M and $14M that do nothing before a potential sunset could face significant estate tax exposure.
If your estate might cross the lower threshold, accelerating large gifts now — while the high exemption is in place — is a strategy worth discussing with an estate attorney.
Key Takeaways
- Annual exclusion: $18,000 per recipient in 2026 (no Form 709, no exemption used)
- Married couple gift splitting: $36,000 per recipient (Form 709 required to elect)
- Lifetime exemption: $13.99M — unified with estate tax
- Direct tuition and medical payments: completely excluded, no dollar limit
- Form 709: required whenever you give more than $18,000 to any single recipient in a year
- Most people never pay gift tax because the $13.99M lifetime exemption shields all but the wealthiest estates
Related tools: How the Gift Tax Works | Estate Tax Calculator