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)
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.