Gift Tax Calculator
Calculate whether your gifts are taxable, how much lifetime exemption you'll use, and whether you need to file Form 709 for 2025-2026.
Total taxable gifts reported on prior Form 709 filings
Estimated Gift Tax
$0
for 2026 tax year
Lifetime Exemption Used:
$31,000
Gift Breakdown
Lifetime Exemption
Form 709 Required
You must file Form 709 because your gift of $50,000 exceeds the $19,000 annual exclusion. Filing is required even if no tax is owed.
Understanding Gift Tax
Annual Exclusion
Give up to $19,000 per person per year (2025-2026) without any tax or reporting requirements.
Lifetime Exemption
$15,000,000 per person in 2026. Gifts above the annual exclusion reduce this unified credit.
Donor Pays
The gift tax is paid by the giver, not the recipient. Recipients generally owe no tax on gifts received.
When to File Form 709
Gifts Over $19,000
You must file Form 709 for any gift to a single person that exceeds the annual exclusion, even if no tax is owed due to the lifetime exemption.
Gift-Splitting Election
Both spouses must file Form 709 when electing to split gifts, even if individual gifts are under the annual exclusion after splitting.
Filing Deadline
Form 709 is due April 15 of the year after the gift. You can request an extension using Form 4868, which extends to October 15.
Business Gifting Rules
Business Gift Deductions
- Business gifts are deductible up to $25 per recipient per year
- Incidental costs (engraving, wrapping, shipping) don't count toward the $25 limit
- Items costing $4 or less with your business name (pens, calendars) are excluded
Gift Tax Exclusions
- Tuition paid directly to an educational institution (unlimited)
- Medical expenses paid directly to a provider (unlimited)
- Gifts to a spouse who is a U.S. citizen (unlimited marital deduction)
- Gifts to qualified charities (not subject to gift tax)
2026 Gift Tax Annual Exclusion and Lifetime Exemption Amounts
The federal gift tax under IRC Sections 2501-2524 applies to transfers of property during life. For the 2026 tax year, the key thresholds are:
| Threshold | 2026 Amount | IRC Section |
|---|---|---|
| Annual exclusion | $19,000 per recipient | Section 2503(b) |
| Lifetime exemption | ~$13.99M per person | Section 2505 / 2010(c) |
| Non-citizen spouse exclusion | $190,000 | Section 2523(i) |
| Top gift tax rate | 40% | Section 2502(a) |
The annual exclusion allows you to give up to $19,000 per recipient per year with no tax, no reporting, and no Form 709 required. A married couple can each give $19,000 to the same person, totaling $38,000 per recipient without filing any forms. With gift-splitting (Section 2513), one spouse can give $38,000 and have it treated as $19,000 from each -- but both spouses must file Form 709.
The lifetime exemption is unified with the estate tax exemption under IRC Section 2010(c). Every dollar of lifetime exemption used for gifts reduces the amount available at death. Under the One Big Beautiful Bill Act, the elevated exemption levels are expected to continue beyond the original 2025 sunset.
Gift-Splitting for Married Couples Under Section 2513
Gift-splitting allows married couples to treat a gift made by one spouse as if each spouse made half. This effectively doubles the annual exclusion from $19,000 to $38,000 per recipient. Both spouses must consent to gift-splitting on Form 709, and both must file the form even if only one spouse actually transferred property.
Gift-splitting is particularly valuable for:
- 529 education savings plans: You can front-load up to 5 years of annual exclusions in a single year. With gift-splitting, a married couple can contribute $190,000 (5 x $19,000 x 2) to a 529 plan in one year without using any lifetime exemption. This is called superfunding.
- Annual gifting programs: Families with many beneficiaries can transfer significant wealth. A couple giving to 10 grandchildren can move $380,000 per year (10 x $38,000) completely tax-free.
- Irrevocable trusts: Gifts to Crummey trusts qualify for the annual exclusion if the trust includes withdrawal rights. Gift-splitting doubles the exclusion per beneficiary.
Educational and Medical Gift Tax Exclusions
Two categories of gifts are completely excluded from the gift tax and do not count toward the annual exclusion or lifetime exemption under IRC Section 2503(e):
- Tuition payments: Payments made directly to a qualified educational institution for tuition are unlimited. The payment must go directly to the school -- not to the student. Room, board, books, and supplies do not qualify. You can pay $50,000 in tuition for a grandchild and still give an additional $19,000 annual exclusion gift to the same person in the same year.
- Medical expenses: Payments made directly to a medical care provider are unlimited. This includes doctor bills, hospital charges, health insurance premiums, and long-term care insurance. Like tuition, the payment must go directly to the provider.
The generation-skipping transfer (GST) tax under IRC Section 2601 applies an additional 40% flat rate on gifts that skip a generation (e.g., grandparent to grandchild). The GST exemption matches the lifetime gift/estate exemption (~$13.99M in 2026). Proper planning with the annual exclusion, educational/medical exclusions, and GST exemption can transfer millions to grandchildren without triggering any transfer tax.
Related Calculators
Official References
This calculator uses current IRS gift tax rules and exemption amounts:
- IRC Section 2503 - Taxable Gifts (Annual Exclusion)
Defines the annual exclusion amount for gifts
- IRC Section 2505 - Unified Credit Against Gift Tax
Provides the lifetime unified credit (exemption) for gift tax
- IRS Form 709 - United States Gift (and Generation-Skipping Transfer) Tax Return
The form required for reporting taxable gifts
- IRS Publication 559 - Survivors, Executors, and Administrators
Guidance on estate and gift tax reporting
This calculator provides estimates based on the federal gift tax. Some states impose their own gift or inheritance taxes. Consult a tax professional for personalized advice. Exemption amounts accurate as of the IRS Revenue Procedure 2024-40 and IRS announcement for tax year 2026.