Tax

Gift Tax Calculator

Calculate federal gift tax for 2026 with the $18,000 annual exclusion and $13.61M lifetime exemption. See taxable gifts and remaining exemption.

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The annual exclusion applies per recipient. Gift is split equally among recipients.

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Disclaimer: This calculator provides estimates only and does not constitute tax advice. Consult a qualified tax professional. Gift tax rules are complex and specific circumstances may alter results.

About This Tool

The Gift Tax Calculator helps you understand the federal gift tax implications of transferring money or property to others during your lifetime. The U.S. gift tax system works in conjunction with the estate tax system through a unified credit, meaning gifts you make during life reduce the amount you can transfer tax-free at death.

Every individual has an annual gift tax exclusion of $18,000 per recipient for 2026. Gifts within this exclusion do not count against your lifetime exemption and do not require filing a gift tax return. Married couples can elect gift splitting to double the exclusion to $36,000 per recipient, even if only one spouse funds the gift.

How the Lifetime Exemption Works

When you give more than the annual exclusion to any individual, the excess is a taxable gift. However, you typically will not owe gift tax because taxable gifts are first applied against your $13.61 million lifetime exemption. Only after you have used your entire lifetime exemption do you actually owe gift tax out of pocket. The lifetime exemption is unified with the estate tax exemption, so using it for gifts reduces what is available to shelter your estate.

Gift Tax Rates

Federal gift tax rates are graduated from 18% to 40%, matching the estate tax rate schedule. The 40% top rate applies to taxable gifts exceeding $1 million (after the lifetime exemption is exhausted). In practice, very few people ever owe gift tax because the $13.61 million exemption is sufficient for most lifetime transfers.

Strategies for Tax-Efficient Gifting

Several strategies can maximize tax-efficient transfers. Annual exclusion gifts to multiple recipients can transfer significant wealth over time. Direct payments to educational institutions for tuition or to medical providers for medical expenses are unlimited and do not count as gifts. Gifts of appreciated assets transfer the donor's cost basis, which may be advantageous if the recipient is in a lower tax bracket. Contributions to 529 plans allow five-year front-loading of annual exclusions.

Frequently Asked Questions

What is the annual gift tax exclusion for 2026?
The annual gift tax exclusion for 2026 is $18,000 per recipient. This means you can give up to $18,000 to any number of individuals each year without it counting against your lifetime gift tax exemption or requiring a gift tax return. Married couples can give up to $36,000 per recipient through gift splitting, even if only one spouse provides the funds.
What is the lifetime gift tax exemption?
The lifetime gift tax exemption for 2026 is approximately $13.61 million per individual. This exemption is unified with the estate tax exemption, meaning gifts that exceed the annual exclusion reduce the amount you can pass on tax-free at death. Any taxable gifts (above the annual exclusion) are applied against this lifetime exemption. You only owe gift tax when cumulative lifetime taxable gifts exceed the exemption.
Do I have to file a gift tax return?
You must file Form 709 (United States Gift Tax Return) if you give more than $18,000 to any single recipient in a year, if you and your spouse elect gift splitting, or if you give a future interest gift. Filing the return does not necessarily mean you owe tax -- it tracks your use of the lifetime exemption. Gifts between spouses (if both are U.S. citizens), gifts to qualified charities, and payments made directly to educational institutions or medical providers are generally excluded.
What is gift splitting?
Gift splitting allows married couples to treat a gift made by one spouse as if it were made half by each spouse. This effectively doubles the annual exclusion to $36,000 per recipient. Both spouses must consent to gift splitting by filing Form 709, and it applies to all gifts made during the year. Gift splitting can also apply to taxable gifts, using each spouse's lifetime exemption equally.
Are gifts to 529 plans subject to gift tax?
Contributions to 529 education savings plans are considered gifts for gift tax purposes. However, a special rule allows you to front-load up to five years of annual exclusions in a single year. For 2026, this means you can contribute up to $90,000 ($180,000 with gift splitting) to a 529 plan without using any lifetime exemption, though you cannot make additional annual exclusion gifts to that beneficiary for the next four years.

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