{
  "id": "gift-tax",
  "version": "5257e28281f3",
  "status": "published",
  "name": "Gift Tax Calculator",
  "question": "Do I owe gift tax?",
  "summary": "Works out the taxable part of gifts made in 2026 after the $19,000 annual exclusion, gift splitting, the $15 million lifetime exemption left, any 40% gift tax, and whether you must file Form 709.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/gift-tax-calculator",
  "markdown": "https://www.acalculator.org/finance/gift-tax-calculator.md",
  "kind": "function",
  "method": "Per giver per person = gift ÷ (2 when splitting, else 1). Taxable per giver = (per giver per person − $19,000, if positive) × people. Taxable gifts = taxable per giver × givers. Lifetime exemption left = $15,000,000 − (earlier taxable gifts + taxable per giver), not below 0. Gift tax per giver = 40% × (earlier + this year’s taxable gifts − the larger of earlier taxable gifts and $15,000,000), not below 0.",
  "assumptions": [
    "Gifts made in 2026 (IRS Rev. Proc. 2025-32), not tax or legal advice.",
    "Gifts are of present interests. Gifts to a US citizen spouse, to charity, and tuition or medical bills paid directly to the school or provider are not taxable and are left out; gifts to a spouse who is not a citizen have a $194,000 exclusion instead.",
    "Earlier taxable gifts used only exemption, with no gift tax paid. With splitting, each spouse has the same earlier taxable gifts. A deceased spouse’s unused exclusion (portability) is not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "gift": {
        "title": "Gift to each person",
        "description": "The value of what you give each person this year (cash, or the market value of property).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000000
      },
      "people": {
        "title": "Number of people",
        "description": "How many people receive that amount. Gifts to your US citizen spouse and to charity are not counted.",
        "type": "integer",
        "minimum": 1,
        "maximum": 1000
      },
      "split": {
        "title": "Split gifts with your spouse",
        "description": "Married couples can treat each gift as made half by each spouse, so two exclusions apply.",
        "type": "boolean"
      },
      "prior": {
        "title": "Taxable gifts in earlier years",
        "description": "Your total taxable gifts after 1976 from earlier Forms 709 (each spouse’s own, if splitting): the lifetime exemption already used.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000000
      }
    }
  },
  "outputs": {
    "taxable": {
      "label": "Taxable gifts",
      "description": "Gifts above the annual exclusion, for all givers: they use up lifetime exemption.",
      "format": "money"
    },
    "tax": {
      "label": "Gift tax due",
      "description": "40% of taxable gifts past the $15,000,000 lifetime exemption, for all givers.",
      "format": "money"
    },
    "left": {
      "label": "Lifetime exemption left",
      "description": "Each giver’s $15,000,000 basic exclusion less all taxable gifts so far.",
      "format": "money"
    },
    "excluded": {
      "label": "Covered by the annual exclusion",
      "description": "The part of the gifts the $19,000 annual exclusion covers.",
      "format": "money"
    },
    "total": {
      "label": "Total given",
      "description": "Gift × number of people.",
      "format": "money"
    },
    "form709": {
      "label": "Form 709",
      "description": "Whether a gift tax return is due.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "gift": 50000,
      "people": 1,
      "split": false,
      "prior": 0
    },
    "outputs": {
      "taxable": 31000,
      "tax": 0,
      "left": 14969000,
      "excluded": 19000,
      "total": 50000,
      "form709": "Yes: a gift to someone is over the annual exclusion"
    },
    "text": "Giving $50,000.00 in all makes $31,000.00 of taxable gifts and $0.00 of gift tax."
  },
  "examples": [
    {
      "given": {
        "gift": 50000,
        "people": 1,
        "split": false,
        "prior": 0
      },
      "expect": {
        "taxable": 31000,
        "tax": 0,
        "left": 14969000,
        "excluded": 19000
      },
      "source": "Rev. Proc. 2025-32 section 4: $19,000 annual exclusion for 2026 and $15,000,000 basic exclusion; Python 3 check in docs/progress/WP-112/check.py"
    },
    {
      "given": {
        "gift": 38000,
        "people": 1,
        "split": true,
        "prior": 0
      },
      "expect": {
        "taxable": 0,
        "tax": 0,
        "excluded": 38000
      },
      "source": "IRC 2513 gift splitting: $19,000 from each spouse; Form 709 is still due to elect splitting (Instructions for Form 709); Python 3 check in docs/progress/WP-112/check.py"
    },
    {
      "given": {
        "gift": 19000,
        "people": 10,
        "split": false
      },
      "expect": {
        "taxable": 0,
        "total": 190000,
        "left": 15000000
      },
      "source": "Annual exclusion per recipient: ten gifts of $19,000 are all excluded"
    },
    {
      "given": {
        "gift": 1019000,
        "people": 1,
        "split": false,
        "prior": 14900000
      },
      "expect": {
        "taxable": 1000000,
        "tax": 360000,
        "left": 0
      },
      "source": "IRC 2001(c): over $1,000,000, 40% of the excess; $900,000 past the $15,000,000 exclusion × 40%; Python 3 check in docs/progress/WP-112/check.py"
    }
  ],
  "sources": [
    "IRS, Rev. Proc. 2025-32 (Internal Revenue Bulletin 2025-45), section 4: annual exclusion for gifts, gifts to a spouse who is not a citizen, and the basic exclusion amount. https://www.irs.gov/irb/2025-45_IRB (retrieved 2026-10-05)",
    "IRC 2001, imposition and rate of tax (rate schedule in subsection (c)). https://www.law.cornell.edu/uscode/text/26/2001 (retrieved 2026-10-05)",
    "IRS, Frequently asked questions on gift taxes. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes (retrieved 2026-10-05)",
    "IRS, Instructions for Form 709. https://www.irs.gov/instructions/i709 (retrieved 2026-10-05)"
  ],
  "related": [
    "income-tax",
    "capital-gains-tax",
    "529"
  ],
  "changelog": []
}