--- title: "Gift Tax Calculator" description: "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." canonical_url: "https://www.themoneypocket.com/tools/gift-tax-calculator" last_updated: "2026-05-01T16:53:16.232Z" --- ## Gift 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. ## 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](/articles/how-the-gift-tax-works). ## 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. 1. Annual exclusion: $18,000 2. Taxable gift: $100,000 − $18,000 = **$82,000** 3. Applied to lifetime exemption: $13,990,000 − $82,000 = **$13,908,000 remaining** 4. Gift tax owed: **$0** (exemption not exhausted) 5. 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](/tools/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](/articles/how-the-gift-tax-works) | [Estate Tax Calculator](/tools/estate-tax-calculator)