How US Gift Tax Works
The US gift tax applies to transfers of money or property to another person. The annual exclusion ($19,000 in 2026) allows you to give that amount per person per year tax-free. Gifts above this use part of your lifetime exemption (~$14M). You only owe actual gift tax if you exceed the lifetime exemption.
2026 Gift Tax Rates (on taxable gifts above lifetime exemption)
| Taxable Amount | Rate |
|---|---|
| Up to $10,000 | 18% |
| $10,000 – $40,000 | 20–22% |
| $40,000 – $100,000 | 24–28% |
| $100,000 – $500,000 | 30–34% |
| Over $1,000,000 | 40% |
Note: The TCJA provisions increasing the lifetime exemption sunset after 2025 unless extended by Congress. For 2026, the exemption may revert to approximately $7M (pre-TCJA indexed), or remain elevated if extended. This calculator uses an estimated $14M. Consult a tax advisor for estate planning.
Frequently Asked Questions
Gifts to a US citizen spouse are generally unlimited and tax-free (marital deduction) — no Form 709 needed. Gifts to a non-citizen spouse have a separate annual exclusion (~$190,000).
Direct payments to educational institutions for tuition or to medical providers for care are excluded from gift tax entirely, with no limit — even above the annual exclusion.