# Do I owe gift tax?

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.

- Page: https://www.acalculator.org/finance/gift-tax-calculator
- JSON spec: https://www.acalculator.org/finance/gift-tax-calculator.json
- Version: 5257e28281f3

## Default answer

Example with the default inputs (Gift to each person $50,000.00, Number of people 1, Split gifts with your spouse No, Taxable gifts in earlier years $0.00): Giving $50,000.00 in all makes $31,000.00 of taxable gifts and $0.00 of gift tax.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| gift | Gift to each person | The value of what you give each person this year (cash, or the market value of property). |
| people | Number of people | How many people receive that amount. Gifts to your US citizen spouse and to charity are not counted. |
| split | Split gifts with your spouse | Married couples can treat each gift as made half by each spouse, so two exclusions apply. |
| prior | Taxable gifts in earlier years | Your total taxable gifts after 1976 from earlier Forms 709 (each spouse’s own, if splitting): the lifetime exemption already used. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| taxable | Taxable gifts | Gifts above the annual exclusion, for all givers: they use up lifetime exemption. |
| tax | Gift tax due | 40% of taxable gifts past the $15,000,000 lifetime exemption, for all givers. |
| left | Lifetime exemption left | Each giver’s $15,000,000 basic exclusion less all taxable gifts so far. |
| excluded | Covered by the annual exclusion | The part of the gifts the $19,000 annual exclusion covers. |
| total | Total given | Gift × number of people. |
| form709 | Form 709 | Whether a gift tax return is due. |

## 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.

## Worked examples

1. gift = $50,000.00, people = 1, split = no, prior = $0.00 gives taxable = $31,000.00, tax = $0.00, left = $14,969,000.00, excluded = $19,000.00. Source: Rev. Proc. 2025-32 section 4: $19,000 annual exclusion for 2026 and $15,000,000 basic exclusion.
2. gift = $38,000.00, people = 1, split = yes, prior = $0.00 gives taxable = $0.00, tax = $0.00, excluded = $38,000.00. Source: IRC 2513 gift splitting: $19,000 from each spouse; Form 709 is still due to elect splitting (Instructions for Form 709).
3. gift = $19,000.00, people = 10, split = no gives taxable = $0.00, total = $190,000.00, left = $15,000,000.00.
4. gift = $1,019,000.00, people = 1, split = no, prior = $14,900,000.00 gives taxable = $1,000,000.00, tax = $360,000.00, left = $0.00. Source: IRC 2001(c): over $1,000,000, 40% of the excess.

## FAQ

### How much can I give in 2026 without paying gift tax?

$19,000 to each person, to as many people as you like, without even filing a return (IRS Rev. Proc. 2025-32). Married couples who split gifts can give $38,000 to each person. Above that you file Form 709, but you pay tax only after your lifetime gifts pass the $15,000,000 basic exclusion.

### What is the lifetime gift tax exemption in 2026?

$15,000,000 per person (the basic exclusion amount, IRC 2010(c)(3)), shared between gifts during life and your estate at death. Every taxable gift (the part over the annual exclusion) uses some of it.

### Who pays the gift tax?

The giver, not the person who receives the gift. The person who receives it owes no income tax on it either.

### What is the gift tax rate?

The rates run from 18% to 40% (IRC 2001(c)), but because the lifetime exemption covers the first $15,000,000, any gift tax actually paid is at 40%.

### What gifts are not taxable?

Gifts to your spouse who is a US citizen, gifts to charity and to political organizations, and tuition or medical bills you pay directly to the school or the provider. Gifts to a spouse who is not a US citizen are excluded up to $194,000 in 2026.

### When do I have to file Form 709?

When you give anyone more than the annual exclusion in a year, give a gift of a future interest (such as through most trusts), or elect to split gifts with your spouse. It is due April 15 of the next year.

## 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)