Gift Tax Calculator
See if your gift triggers tax and how much lifetime exemption you'll use.
Gift Details
Gift Tax Summary
| Per recipient amount | $50,000 |
| Annual exclusion per recipient | $19,000 |
| Taxable per recipient | $31,000 |
| Lifetime exemption used (cumulative) | $31,000 |
| Lifetime exemption remaining | $13,579,000 |
| Gift splitting would save | $19,000 |
| Marginal rate | 0% |
Key Considerations
- 1.Each gift over $19,000 per recipient requires filing Form 709 (Gift Tax Return)
- 2.Gift splitting with your spouse could double your annual exclusion to $38,000 per recipient
- 3.No tax is owed — the taxable amount reduces your lifetime estate/gift exemption instead
- 4.Spreading gifts across multiple recipients or years can minimize taxable gift amounts
- 5.The lifetime exemption is scheduled to drop to roughly $7M after 2025 sunset provisions — but Congress may extend it
- 6.Gifts to 529 plans can use 5 years of annual exclusion at once (superfunding)
This calculator provides estimates based on 2026 federal gift tax rules. Consult a tax professional for your specific situation.
How the Federal Gift Tax Works
The IRS taxes large transfers of money or property during your lifetime. However, two major exclusions protect most people from ever paying gift tax. The annual exclusion lets you give up to $19,000 per recipient in 2026 without any tax consequences — no filing required. Married couples can "split" gifts, effectively doubling the exclusion to $38,000 per recipient. Gifts to a U.S.-citizen spouse, qualified charities, and political organizations are completely exempt with no dollar limit.
2026 Gift Tax Exclusions and Exemptions
| Provision | 2026 Amount | Who It Applies To |
|---|---|---|
| Annual exclusion (per recipient) | $19,000 | Any donor, any number of recipients |
| Annual exclusion with gift splitting | $38,000 | Married couples electing to split |
| Lifetime exemption (per person) | $13,610,000 | Combined gift + estate tax exemption |
| Lifetime exemption (married couple) | $27,220,000 | With portability election |
| 529 superfunding (5-year election) | $95,000 / $190,000 | Single / married, per beneficiary |
| Marital deduction | Unlimited | Gifts to U.S.-citizen spouse |
| Charitable deduction | Unlimited | Gifts to qualified charities |
Gift Tax Rates
If your cumulative taxable gifts exceed the lifetime exemption, the excess is taxed at graduated rates from 18% to 40%. In practice, fewer than 0.1% of Americans ever owe gift tax because the $13.61 million lifetime exemption is so large. However, gifts over the annual exclusion still require filing Form 709 even if no tax is owed.
| Taxable Amount | Rate |
|---|---|
| $0 – $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% |
| $750,001 – $1,000,000 | 39% |
| Over $1,000,000 | 40% |
Frequently Asked Questions
Does the recipient pay gift tax?
No. The donor (person giving) is responsible for any gift tax, not the recipient. The recipient does not report the gift as income and owes no income tax on it. However, if the gift is income-producing property (like rental real estate or dividend-paying stock), the recipient will owe income tax on future earnings from that property.
What happens to the lifetime exemption after 2025?
The Tax Cuts and Jobs Act doubled the lifetime exemption through 2025. Without congressional action, the exemption is scheduled to drop to roughly $7 million (adjusted for inflation) starting in 2026. However, the IRS has confirmed an anti-clawback rule: if you use exemption while it's high, you won't be penalized if the limit later drops. This makes 2025–2026 a strategic window for large gifts.
Do I need to file a gift tax return for every gift?
Only if the gift to any single recipient exceeds the $19,000 annual exclusion. Gifts to your spouse, qualified charities, and direct payments for someone's medical bills or tuition (paid directly to the institution) do not require a return regardless of amount.
See also: Estate Planning Checklist and Inheritance Tax Calculator.