Gift tax calculator 2026

What the gift tax really is

The federal gift tax is reported and paid by the giver, not the receiver, and it is due only after a very large lifetime total. A gift above the annual exclusion has to be reported, and the reported amount is deducted from a single lifetime exemption of $15,000,000 for 2026, shared with the estate tax. Tax is due only after that total is gone. So the practical questions are not "how much tax" but "must I file", "how much of my exemption did I use" and "can I stay under the annual exclusion by giving to several people or by splitting with my spouse".

The calculator answers those three questions. It works for one donor; for a married couple that splits gifts, enter the combined gift and read the results for each spouse.

What is the gift tax annual exclusion for 2026?

$19,000 per recipient. The IRS sets it in Revenue Procedure 2025-32, section 4.42, and the figure is the same as in 2025. You can give $19,000 to as many people as you like in one calendar year without reporting anything, as long as each gift is a present interest, meaning the recipient can use it now. The exclusion works per donor and per recipient: you and your spouse can each give $19,000 to the same child, $38,000 together. A gift to a spouse who is not a U.S. citizen has a higher exclusion of $194,000 in 2026. Gifts to a spouse who is a U.S. citizen do not need a gift tax return at all, with exceptions the Form 709 instructions describe, such as certain terminable interests.

Do I owe tax when I give more than the annual exclusion?

Usually not. The part above the exclusion is a taxable gift, and it must be reported on Form 709, but it is not paid: it is subtracted from your lifetime exemption, which is $15,000,000 in 2026 and is the same exemption that protects your estate. You owe gift tax only when your total taxable gifts over your lifetime exceed that amount, and the excess is taxed at rates up to 40%. The donor files the return; the person who receives the gift does not file for it. In the example in this calculator, giving $25,000 to each of 2 people leaves $6,000 taxable per person, $12,000 in all; the tax is $0 and the lifetime exemption left is $14,988,000.

When do I have to file Form 709?

File if you gave any one person more than $19,000 in the year (other than your U.S.-citizen spouse), if you gave a gift of a future interest at any value, if you give more than $194,000 to a spouse who is not a U.S. citizen, or if you and your spouse split gifts. The return is due April 15 of the year after the gift; an extension of your income tax return extends it, or you can file Form 8892 for an automatic 6-month extension. An extension to file is not an extension to pay. Even when no tax is due, the filing creates the record that shows how much of your lifetime exemption you have used.

What is gift splitting?

Married couples who are both U.S. citizens or residents can treat a gift made by one spouse as made half by each. A $38,000 gift from one spouse to one child becomes two $19,000 gifts, each within the $19,000 annual exclusion, so there is nothing taxable. The catch is the paperwork: the election is made on Form 709, the other spouse must consent in writing by the April 15 deadline, and in general both spouses file their own Form 709, even if the gift is under the exclusion. The Form 709 instructions list two exceptions in which only the giving spouse files: for example, only one spouse made gifts, no recipient got more than $38,000, and all gifts were present interests. The consent covers every gift either spouse made to third parties that year, and both spouses become jointly liable for the gift tax. In this calculator, choose "Yes, we split" and enter the combined gift per person; the results are for each spouse.

How does the 529 five-year election work?

A contribution to a 529 plan is a gift to the beneficiary. If you give more than $19,000 in one year, you may elect to spread it over 5 years for the annual exclusion, up to 5 × $19,000 = $95,000 per beneficiary in 2026 (our multiplication; the Form 709 instructions state $95,000 for 2025 at the same $19,000 exclusion). The IRS example: a $100,000 contribution is treated as $95,000 spread over 5 years, plus $5,000 that exceeds the election limit and is a taxable gift. Without the election the same $100,000 would be $81,000 taxable. Each year's fifth, $19,000, is reported on Form 709 for 5 years; in the last four years you need not file just for that if you gave nothing else that requires a return. The election is made on Schedule A of Form 709 in the year of the contribution.

Which payments are not gifts?

Two kinds of payment are not gifts, however large: tuition paid directly to the school (not books, supplies, room or board) and medical care paid directly to the provider (including medical insurance premiums). Both need no Form 709 and do not use up the annual exclusion or the lifetime exemption. If you hand the money to the person and they pay the school, it is an ordinary gift. A payment the recipient's insurance reimburses is also not covered to that extent. Transfers to a U.S.-citizen spouse and to some political and charitable organizations are also outside the tax. This calculator counts only gifts you enter, so leave these payments out.

How does the calculator work? Example

It subtracts the annual exclusion from each recipient's gift, adds the taxable remainder to your earlier taxable gifts, and applies the unified rate schedule only to the part that goes over $15,000,000. With $14,990,000 of earlier taxable gifts, a new $39,000 gift to one person is $20,000 taxable, bringing the total to $15,010,000: that is $10,000 over the exemption, so $4,000 of tax at 40%. These are example numbers for a very wealthy donor.

Common mistakes

Counting a gift of a future interest as covered by the annual exclusion: it is not, and Form 709 is required at any amount. Paying tuition by giving the money to the student first. Forgetting that gift splitting needs a Form 709 even when neither spouse gave more than $19,000 to anyone. Putting annual-exclusion gifts in the "earlier taxable gifts" field: only the taxable amounts reported on earlier returns belong there. Forgetting that this page covers the gift tax only: it does not tell you anything about income tax on the gifted asset.

An estimate for planning only — not legal or tax advice; your Form 709 decides. Sources: IRS Revenue Procedure 2025-32, section 4.42 (annual exclusion $19,000; $194,000 for a non-citizen spouse) and section 3.14 (basic exclusion amount $15,000,000); IRS Instructions for Form 709 (2025, revised July 2026): who must file, medical and education exclusions, gift splitting, qualified tuition program election, due date; IRS What’s New — Estate and Gift Tax (reviewed July 23, 2026); checked October 27, 2026. The same lifetime exemption appears in the estate tax calculator. For tax on income see the income tax calculator, and for saving for a child’s education the college savings calculator. How we check our calculators.