About the Gift Tax Calculator
This gift tax calculator shows how a gift is treated under US federal gift tax rules. Enter the total you plan to give, how many people will receive it and whether you and your spouse will elect gift splitting. It works out how much is covered by the annual exclusion, how much counts as a taxable gift that must be reported on Form 709, how much of your lifetime exemption you have left, and whether any tax is actually due.
For 2026 the annual exclusion is $19,000 per recipient ($38,000 for a married couple who split gifts) and the basic exclusion amount — the lifetime exemption shared by gifts and your estate — is $15,000,000 per person, set permanently (and indexed for inflation) by the One Big Beautiful Bill Act. Gift tax is only paid once lifetime taxable gifts exceed that exemption, at a top rate of 40%.
It suits parents helping with a house deposit, grandparents funding education, and anyone planning larger transfers. Gifts to a US-citizen spouse, to charity, and tuition or medical bills paid directly to the school or provider are unlimited and do not use the annual exclusion, so leave them out.
With the default inputs, the taxable gifts (reported on form 709) is $62,000.00. Change any value above to recalculate instantly.
How to use the gift tax calculator
- 1Enter the total you will give this calendar year and how many people receive it.
- 2Turn on gift splitting if you are married and both spouses will consent on Form 709.
- 3Check the annual exclusion and lifetime exemption for the year of the gift.
- 4Enter any lifetime exemption already used on earlier gift tax returns.
- 5Read the taxable gift, remaining exemption and any tax due.
Formula and method
Each recipient’s gift is compared with the annual exclusion ($19,000 for 2026, doubled to $38,000 when spouses elect gift splitting). Anything above it is a taxable gift that must be reported on Form 709, but tax is not paid yet: the unified credit covers taxable gifts up to your remaining lifetime exemption ($15,000,000 per person for 2026).
Only the portion of cumulative taxable gifts above the exemption is taxed. Because the exemption is far above $1 million, that excess always falls in the top 40% bracket of the unified rate schedule, so the calculator applies 40% to it. Remember that exemption used during life reduces what is left to shelter your estate at death.
- exclusion
- Annual exclusion per recipient per donor
- donors
- 2 with gift splitting, otherwise 1
Worked examples
$100,000 split between two children
Each child receives $50,000; $19,000 is covered by the annual exclusion and $31,000 is a taxable gift. The $62,000 total is reported on Form 709 and reduces the $15 million lifetime exemption to $14,938,000 — no tax is paid.
Couple splitting $150,000 across four grandchildren
With gift splitting each grandchild can receive $38,000 tax-free. $37,500 each is under that, so nothing is taxable, but a Form 709 is still filed to make the gift-splitting election.
Large gift after the exemption is nearly used
After the $19,000 exclusion, $1,981,000 is taxable. Only $500,000 of exemption remains, so $1,481,000 is taxed at 40%, for $592,400 of gift tax due with the return.
Frequently asked questions
How much can I gift tax-free in 2026?+
You can give up to $19,000 to any number of people in 2026 without filing a gift tax return. A married couple who split gifts can give $38,000 per recipient. Larger gifts are usually still tax-free but use part of your $15 million lifetime exemption.
Who pays gift tax, the giver or the receiver?+
The person making the gift (the donor) is responsible for filing Form 709 and paying any gift tax. The recipient does not pay federal gift tax or income tax on the gift itself.
When is Form 709 due?+
Form 709 is due April 15 of the year after the gift, the same day as your income tax return. An extension of your income tax return automatically extends the gift tax return filing deadline.
What gifts do not count toward the annual exclusion?+
Tuition paid directly to a school, medical expenses paid directly to a provider, gifts to a US-citizen spouse, gifts to qualified charities and contributions to political organisations are excluded entirely and do not use the annual exclusion.
Does using the lifetime gift exemption affect estate tax?+
Yes. Gift and estate taxes share one unified exemption. Taxable gifts made during life reduce the amount that can later pass free of estate tax, though the lifetime exemption is now permanent and indexed for inflation.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.